By Haripriya Suresh and Sai Ishwarbharath B

BENGALURU (Reuters) – India’s No.1 software-services exporter Tata Consultancy Services is planning to focus extra on markets akin to Japan, Latin America and Southern Europe amid weak point in North America, its chief government stated.

The plan to diversify extra comes after the business chief reported its slowest quarterly revenue progress since 2020, and income contributions from its mainstay market, North America, have declined for 4 straight quarters.

“I wouldn’t say we are consciously reducing our North America exposure, but we are consciously increasing our play in other geographies because we want to work more in markets like Latin America, Southern Europe or Japan,” Ok. Krithivasan stated.

North America has been very important for the $245 billion Indian info expertise sector, with a number of corporations deriving over half their income from the area. IT purchasers there have been reluctant to spend on discretionary tasks in latest quarters amid inflationary pressures and financial uncertainty.

That is making TCS take a look at different markets with quite a lot of headroom for progress regardless of language and different limitations.

For occasion, Japan’s income contribution to the Indian IT sector is “very miniscule” regardless of the nation being the one of many largest tech spenders, Krithivasan stated.

Mumbai-based TCS, which has historically made more cash catering to purchasers overseas, can be zooming in on its residence turf.

India contributed to six.1% of the income within the newest third quarter, the very best stage because the second quarter of fiscal 2018. Latin America accounted for two.1% of TCS’s income.

The high TCS government is “generally optimistic” concerning the upcoming monetary 12 months, after many analysts known as the present one a “washout” for the Indian IT business.

Last week, Infosys tightened its annual income forecast, HCLTech trimmed the highest finish of the identical metric and Wipro warned it’d finish the 12 months with a income decline for the primary time in three years.

“We believe it (fiscal 2025) could be a better year than fiscal 2024,” Krithivasan stated.

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Dhanya Skariachan and Christian Schmollinger)