Though there were concerns stemming from the energy crisis in Europe and inflation in the United States, Tata Consultancy Services<\/a> (TCS<\/a>) is hoping its $8 billion portfolio of deals will act as a buffer against any crisis in the coming quarters, said chief operating officer N Ganpathy Subramaniam<\/a>. In an interview to ET’s Romita Majumdar, Sai Ishwarbharath and Aashish Aryan, Subramaniam said the IT industry could fall apart due to moonlighting<\/a> – which he termed “unethical” - and that it could hurt client confidentiality and trust. Edited excerpts. N Ganapathy Subramaniam,印度最大的软件公司的首席运营官TCS,交谈等对欧洲的能源危机对公司的影响,新鲜的工资停滞不前和兼职 尽管有源于欧洲的能源危机和通货膨胀的担忧在美国,塔塔咨询服务公司(TCS)希望其80亿美元的投资组合的交易将充当缓冲任何危机在未来几个季度,首席运营官说N Ganpathy苏。在一次采访中ET的Romita Majumdar, Sai Ishwarbharath Aashish雅利安人,苏说,IT行业由于兼职分崩离析——他称为“不道德的”,它可能会损害客户保密和信任。编辑摘录。
Your performance in the second quarter has been better than estimated. Are global inflationary and recessionary trends impacting you?
<\/strong>
Europe is trying to overcome the energy crisis<\/a> and resolve its dependencies around it. The US is fine and so is France because they are producing their own nuclear energy. But inflation is an important threat. Economic indicators are different, but people are still spending. Most customers have told us that they don’t want to pass on costs to customers. Clients are telling us that they will not cut down spending on any existing project. Short-term projects (3-6 months) that give some savings or improve customer experience are fine, but multi-year transformation programmes etc; will go through a vetting cycle.
Are clients bracing up for any likely crisis over the next few quarters?
<\/strong>
Our thinking is this. We've got a good $8 billion order book for the last several quarters. So, if a crisis hits, we'll always have at least about a quarter or two before we can react and then see how we want to adjust. We also have a diversified portfolio and cater to different markets. Nobody thought that the UK would do well for us, but it did. So, even in the tough situation that the businesses have to run, they will require a certain amount of optimization. Whether we will need to tighten our belts is something that we have to wait and watch. But we don't see any of these things in the North American market where customers are a lot more bullish. That's quite the opposite of the recessionary trend. Corporations, airlines, hospitality, and industries are doing well. You have to see it in the backdrop of a pandemic, where people didn't get the chance to spend or go out. We listen to our customers and most of them have told us that the programmes that they are executing currently are going to continue, that they are not going to be cancelled.
Your margins have improved. What can you do to take it to the aspirational 26-28% band?
<\/strong>
There are multiple things. One is this whole attrition and the backfilling costs (replacing employees who have quit with new ones and training them) that I think will come down significantly. First, attrition is tapering off. I believe that the high backfilling costs that we have had for the last 2-3 quarters will come down significantly. Then, we hired a lot of people last year and, this year they're all coming productive. So, utilisation is down right now, but I think we have got bench strength… (and) that should improve. Even with trainees, we used to operate with 90%. Right now, it's about 83%. Currency support is an integral part to this whole thing. I hope the currency stabilises somewhere. (Business) growth is certainly important and it will have to fund some of the margin uptick that we are looking at. Lastly, our typical operational excellence and productivity improvements that we run. These are all broad elements we count on to optimise the margins.
Fresher salaries have remained stagnant<\/a> for a decade. Isn’t there a case for increasing salaries in sync with inflation?
<\/strong>
People come in with a basic skill and within a matter of 18 months they have the opportunity to double their salary through training, and meaningful contribution. That's the way that we have structured it. They should have some skin in the game. We also want to observe them, how committed they are to learning. Salaries are a combination of many things. We believe that we are giving them a package which is more than adequate for the cost of living in India. You will join us as a fresher and go through that training perhaps, pass successfully, then we tell you ‘look, if you take these programs and become more relevant to the customers, you will get an increment’. Then there's an opportunity for you to go overseas and stay even more relevant to you as well as the company. So, I think we pay well.
What do you think about industry concerns over moonlighting?<\/a> How is TCS dealing with this issue?
<\/strong>
It is unethical and unacceptable from an employer perspective. Unacceptable for my clients as well. The whole industry could fall apart due to this. Businesses are built based on integrity and certain values. You can’t do such a thing just to earn more money. You need to build a career. That is also why it is also important to come to the office. Being there, watching how your peers work, comparing your work with them, it is all a learning process. They can choose their role models and mentors and learn how to conduct themselves - especially the people who have joined over the past two years. That is how organizational cultures are built.
How are macroeconomic concerns impacting the deal pipeline?
<\/strong>
Out of the $8.1 billion deal Total Contract Value reported this quarter, I think the largest one by value is about $350 million. We have seen deals across sizes. I wouldn’t say they are very large - they are in the $50 million, $100 million, $150 million range. It is fairly well diversified across Europe, UK, as well as North America. And across the geographies…it is really broad based. So, there's nothing to call out as an exception, except that the gap between the qualified and non-qualified pipeline is slightly elongated. At least, 70% of the deals now have a timeline of 6-12 months; typically, they have a one-year duration. About 30% will be less than six months. These are small projects, consulting engagements and change requests.
Infosys<\/a> has just announced a share buyback. Will TCS also follow suit?
<\/strong>
As per regulatory requirements, we cannot announce a buyback as we have already completed one last year. We have consistently rewarded shareholders and chosen to disburse 100% of our free cash flow through every instrument available to us. Secondly, we don’t operate based on share prices. It is more important for us to focus on whether our customer base is increasing, deals are increasing and that we are not losing more employees than we would like to.
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IT行业可能崩溃由于兼职:TCS的苏
你的表现在第二季度已经比预计要好。全球通胀和衰退的趋势影响你吗?
欧洲正在努力克服能源危机和解决其依赖关系。美国很好,所以是法国,因为他们是生产他们自己的核能。但通胀是一个重要的威胁。经济指标是不同的,但人们仍支出。大多数顾客告诉我们,他们不想把成本转嫁给消费者。客户告诉我们,他们将不会减少任何现有的支出项目。短期项目(3 - 6个月),给出一些储蓄或改善客户体验很好,但多年的转型规划等;会通过审查周期。
我们的思维是这样的。我们有一个好的订单在过去的几个季度的80亿美元。因此,如果爆发危机,我们总会有至少一到两个季度才能反应,然后看看我们想调整。我们也有一个多样化的投资组合,迎合不同的市场。没有人认为英国会为我们做得很好,但它确实。所以,即使在艰难的情况下,企业必须来看,他们需要一定的优化。我们是否需要勒紧裤腰带是我们必须等等看。但是我们没有看到任何这些东西在北美市场客户更乐观。这是恰恰相反的衰退趋势。公司、航空公司、酒店、行业做得很好。 You have to see it in the backdrop of a pandemic, where people didn't get the chance to spend or go out. We listen to our customers and most of them have told us that the programmes that they are executing currently are going to continue, that they are not going to be cancelled.
你的利润率有所改善。你能做什么来把它的26 - 28%的乐队吗?
有很多东西。一个是整个摩擦和回填成本(用新的代替辞职的员工和培训),我认为会显著下降。首先,摩擦逐渐减速。我相信回填成本高,我们已经在过去的2 - 3季度将显著下降。然后,我们去年雇佣了很多人,今年他们都富有成效。利用率是现在,但我认为我们有板凳力量…(和),应该改进。即使学员,我们使用操作为90%。现在,约83%。货币支持这整个事情是一个组成部分。我希望货币企稳。(业务)的增长无疑是重要的,它将不得不基金的一些利润率上升,我们正在研究。 Lastly, our typical operational excellence and productivity improvements that we run. These are all broad elements we count on to optimise the margins.
新鲜的工资有一直停滞不前十年了。没有理由增加工资与通货膨胀同步?
人有一个基本的技能和在18个月他们薪水有机会通过培训翻倍,而有意义的贡献。这就是我们有结构化的方式。在比赛中他们应该有一些皮肤。我们也要观察他们,他们是如何全心全意学习。工资是许多东西的结合。我们相信,我们给他们一个包比适合印度的生活成本。你会加入我们新鲜,经过训练,或许成功通过,然后我们告诉你的,如果你把这些项目和变得更加相关的客户,你会得到一个增量。还有你去海外的机会,更与你以及公司有关。所以,我认为我们支付。
你怎么看待行业担忧在兼职吗?TCS是如何处理这个问题?
从雇主的角度来看是不道德的和不可接受的。接受我的客户。由于整个行业可能会分开。企业构建基于完整性和某些值。你不能做这样的事只是为了挣更多的钱。您需要构建一个事业。这也是为什么同样重要的是来办公室。在那里,看你的同行是如何工作的,比较你的工作,这都是一个学习的过程。他们可以选择他们的榜样和导师,学习如何进行自己——特别是加入了过去两年的人。这是组织文化是如何构建的。
宏观经济问题是如何影响交易的管道?
从本季度合同总额81亿美元的交易报告,我认为最大的一个价值约3.5亿美元。我们已经看到交易在大小。我不会说他们非常大——5000万美元,1亿美元,1.5亿美元的范围内。它是相当多元化的欧洲,英国,以及北美。和整个地区…真的很广泛的基础。所以,没什么可作为例外,除了合格之间的差距并没有管道有点长。至少70%的交易现在有时间6 - 12个月;通常情况下,他们有一年的时间。大约30%将少于六个月。这些都是小项目,咨询活动和变更请求。
印孚瑟斯刚刚宣布了一项股票回购。TCS还效仿吗?
根据监管要求,我们不能宣布回购去年我们已经完成了一个。我们一贯的回报股东和选择支付我们100%的自由现金流在每一个乐器。其次,我们不操作基于股票价格。对我们来说更重要的是关注我们的客户群是否增加,交易越来越多,我们不会失去更多比我们想的员工。
读到
Though there were concerns stemming from the energy crisis in Europe and inflation in the United States, Tata Consultancy Services<\/a> (TCS<\/a>) is hoping its $8 billion portfolio of deals will act as a buffer against any crisis in the coming quarters, said chief operating officer N Ganpathy Subramaniam<\/a>. In an interview to ET’s Romita Majumdar, Sai Ishwarbharath and Aashish Aryan, Subramaniam said the IT industry could fall apart due to moonlighting<\/a> – which he termed “unethical” - and that it could hurt client confidentiality and trust. Edited excerpts.
Your performance in the second quarter has been better than estimated. Are global inflationary and recessionary trends impacting you?
<\/strong>
Europe is trying to overcome the energy crisis<\/a> and resolve its dependencies around it. The US is fine and so is France because they are producing their own nuclear energy. But inflation is an important threat. Economic indicators are different, but people are still spending. Most customers have told us that they don’t want to pass on costs to customers. Clients are telling us that they will not cut down spending on any existing project. Short-term projects (3-6 months) that give some savings or improve customer experience are fine, but multi-year transformation programmes etc; will go through a vetting cycle.
Are clients bracing up for any likely crisis over the next few quarters?
<\/strong>
Our thinking is this. We've got a good $8 billion order book for the last several quarters. So, if a crisis hits, we'll always have at least about a quarter or two before we can react and then see how we want to adjust. We also have a diversified portfolio and cater to different markets. Nobody thought that the UK would do well for us, but it did. So, even in the tough situation that the businesses have to run, they will require a certain amount of optimization. Whether we will need to tighten our belts is something that we have to wait and watch. But we don't see any of these things in the North American market where customers are a lot more bullish. That's quite the opposite of the recessionary trend. Corporations, airlines, hospitality, and industries are doing well. You have to see it in the backdrop of a pandemic, where people didn't get the chance to spend or go out. We listen to our customers and most of them have told us that the programmes that they are executing currently are going to continue, that they are not going to be cancelled.
Your margins have improved. What can you do to take it to the aspirational 26-28% band?
<\/strong>
There are multiple things. One is this whole attrition and the backfilling costs (replacing employees who have quit with new ones and training them) that I think will come down significantly. First, attrition is tapering off. I believe that the high backfilling costs that we have had for the last 2-3 quarters will come down significantly. Then, we hired a lot of people last year and, this year they're all coming productive. So, utilisation is down right now, but I think we have got bench strength… (and) that should improve. Even with trainees, we used to operate with 90%. Right now, it's about 83%. Currency support is an integral part to this whole thing. I hope the currency stabilises somewhere. (Business) growth is certainly important and it will have to fund some of the margin uptick that we are looking at. Lastly, our typical operational excellence and productivity improvements that we run. These are all broad elements we count on to optimise the margins.
Fresher salaries have remained stagnant<\/a> for a decade. Isn’t there a case for increasing salaries in sync with inflation?
<\/strong>
People come in with a basic skill and within a matter of 18 months they have the opportunity to double their salary through training, and meaningful contribution. That's the way that we have structured it. They should have some skin in the game. We also want to observe them, how committed they are to learning. Salaries are a combination of many things. We believe that we are giving them a package which is more than adequate for the cost of living in India. You will join us as a fresher and go through that training perhaps, pass successfully, then we tell you ‘look, if you take these programs and become more relevant to the customers, you will get an increment’. Then there's an opportunity for you to go overseas and stay even more relevant to you as well as the company. So, I think we pay well.
What do you think about industry concerns over moonlighting?<\/a> How is TCS dealing with this issue?
<\/strong>
It is unethical and unacceptable from an employer perspective. Unacceptable for my clients as well. The whole industry could fall apart due to this. Businesses are built based on integrity and certain values. You can’t do such a thing just to earn more money. You need to build a career. That is also why it is also important to come to the office. Being there, watching how your peers work, comparing your work with them, it is all a learning process. They can choose their role models and mentors and learn how to conduct themselves - especially the people who have joined over the past two years. That is how organizational cultures are built.
How are macroeconomic concerns impacting the deal pipeline?
<\/strong>
Out of the $8.1 billion deal Total Contract Value reported this quarter, I think the largest one by value is about $350 million. We have seen deals across sizes. I wouldn’t say they are very large - they are in the $50 million, $100 million, $150 million range. It is fairly well diversified across Europe, UK, as well as North America. And across the geographies…it is really broad based. So, there's nothing to call out as an exception, except that the gap between the qualified and non-qualified pipeline is slightly elongated. At least, 70% of the deals now have a timeline of 6-12 months; typically, they have a one-year duration. About 30% will be less than six months. These are small projects, consulting engagements and change requests.
Infosys<\/a> has just announced a share buyback. Will TCS also follow suit?
<\/strong>
As per regulatory requirements, we cannot announce a buyback as we have already completed one last year. We have consistently rewarded shareholders and chosen to disburse 100% of our free cash flow through every instrument available to us. Secondly, we don’t operate based on share prices. It is more important for us to focus on whether our customer base is increasing, deals are increasing and that we are not losing more employees than we would like to.
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