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FY2014 to be a better year for IT firms: TCS CEO

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Supriya Rai
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MUMBAI, INDIA: Citing signs of recovery in the US economy, TCS chief executive and chairman of NASSCOM N Chandrasekaran expects the next fiscal year to be a better one for Indian IT companies.

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''We feel FY14 will be a better year. However the December quarter always has furloughs that result in lesser growth and volumes suffer,'' N Chandrasekaran, Tata Consultancy Services Ltd CEO and MD told reporters in Mumbai on the sidelines of NASSCOM- DSCI Information Security Summit 2012 organized on Tuesday.

He pointed out that, ''The manufacturing, hi tech companies and telecom companies have furloughs in December. This year also we are seeing furloughs and that will have an impact. Overall, we are not seeing any signs of change for next year, but we will give more color in January.'' Given this view, it would not be a big surprise if the December quarter proves remains tough quarter for IT companies.

While some Indian tech companies like Infosys, Hexware and other have revised their revenue outlook for the current fiscal, Chandrasekaran stressed, ''NASSCOM has projected a double digit growth for this fiscal and we are sticking with it.''

As per NASSCOM estimates, Indian IT sector is expected to grow around 11-14 per cent during FY2012-13. According to Chandrasekaran, the US economy is showing signs of recovering post the elections as now there's more focus on economic growth and job creations leading to positive impact on the economy as well as tech sector.

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