TCS reviews capital expenditure plan

Tata Consulting Services is reviewing its capital expenditure plans due to the current global economic turmoil, said Managing Director and Chief Executive Officer S Ramadorai.

"Our capex plans may shift or get delayed in terms of infrastructure development and technology acquisition. Also, cost reductions are in place for productivity improvement and in the usage of travel, communications and power," he told mediapersons on the sidelines of the Internet Governance Forum 2008 in Hyderabad on Wednesday.

"The financial crisis is for real across all the sectors worldwide. There will be opportunities in the long run, but don't expect anything in the near term," he said.

"How you turn adversity into opportunity is vital. That's how we look at things. That's how we engage with our customers," the TCS chief said.

At present, the banking, financial services and insurance is the major contributor to TCS' overall revenues.

Ramadorai, who is also the chairman of Business Action to Support the Information Society, said the company was targeting to improve its employee utilisation rate to 82-83 per cent this year as against 81 per cent during the July-September quarter of this year.

Earlier, addressing IGF, Ramadorai said the business community continued to play a significant role in helping more people to jump onto the 'Internet Express'.