Tata Consultancy Services Ltd , India's largest IT services exporter, is optimistic about clients' discretionary spending in the next fiscal year starting April 1 thanks to an improving economy in the United States, its biggest market, its chief executive said.
Discretionary spending, which is typically for longer-term projects by clients and is an indicator of the health of the industry, accounts for a large part of Indian outsourcing companies' business.
"In the U.S., there's a lot of positive mood. Companies are feeling that there are growth opportunities," CEO N Chandrasekaran told reporters. "We expect discretionary spending next (fiscal) year to see an uptick based on the conversations we have had."
Indian IT vendors are expected to reap the benefits this year of the strongest demand from U.S. businesses since the end of the 2008 financial crisis.
India's $108 billion-a-year IT and back-office outsourcing sector earns about three-quarters of its revenue from customers in the United States and Europe.
Chandrasekaran also said he expected pricing for TCS's services to remain stable in the next financial year.