Understanding TCS's Strategy in a Changing Global Market

In a recent interview, TCS CEO K Krithivasan addressed the company's performance and its strategic approach towards H-1B visas and global workforce management. Despite a sequential lackluster performance attributed to client deferrals and seasonal effects, Krithivasan remains optimistic about surpassing last year's achievements by 2025.

TCS and the H-1B Visa Debate

With the potential return of Trump and the ongoing debate around H-1B visas, Krithivasan emphasized TCS's limited dependence on these visas. Annually, TCS secures between 3,000 to 4,000 H-1B visas for a workforce of approximately 600,000, indicating a minimal reliance. Moreover, over 50% of TCS's workforce in the US is locally hired, showcasing the company's commitment to local employment and its adaptability to immigration regulations.

Krithivasan also highlighted the importance of nearshore operations, such as those in Mexico, which serve North American clients in the same time zone, ensuring efficient service delivery. This strategy not only mitigates potential changes in immigration policies but also underscores TCS's proactive approach to global workforce management.

Embracing Technological Advancements

Discussing the structural shifts within the industry, Krithivasan pointed out the role of new technologies in achieving productivity gains without necessarily increasing headcount. AI, in particular, is seen as a disruptive force in software engineering, enabling significant improvements and creating new roles. TCS has already trained over 500,000 associates in GenAI, positioning itself as a leader in adopting and leveraging these technological advancements for its clients.

Looking Ahead

Despite the challenges faced in Q3, including deferred discretionary spending and seasonal weaknesses, TCS is confident about its growth trajectory. With a robust order book and positive client discussions, the company anticipates multiple geographies will return to growth in the medium term, signaling a strong outlook for the future.