Shruti Kothari | Jaipur | Business Remedies | India’s largest IT services firm, Tata Consultancy Services (TCS), has identified its clients in the retail, travel, and automobile sectors as particularly susceptible to the ongoing volatility surrounding U.S. tariffs.
CEO K. Krithivasan highlighted that while the banking and financial services sector-comprising nearly a third of TCS’s revenue-remains stable, consumer-facing industries are exhibiting caution in their spending due to the unpredictable trade environment.
The uncertainty stems from the fluctuating U.S. tariff policies under President Donald Trump’s administration, which have complicated market forecasts and led to delays in discretionary projects. Krithivasan noted that if this instability persists, affected sectors might resort to cost-cutting measures.
Despite missing fourth-quarter earnings estimates, TCS anticipates a rebound in fiscal year 2026, driven by clients’ ongoing efforts to replace legacy systems. The company also reported gaining market share through IT vendor consolidation, as clients aim to streamline costs by reducing the number of service providers.
With approximately half of its revenue generated from North America, TCS remains particularly sensitive to U.S. market dynamics. The firm’s strategic focus on long-term digital transformation projects positions it to navigate the current challenges and capitalize on future opportunities.
