K Krithivasan —the chief executive and managing director of TCS —believes that the tariff moves-induced uncertainty impacting the sector will be “short-lived” and expects it to get resolved within “months”.

The over $39-billion order book of the company will ensure that TCS will continue revenue bookings, the head of the country’s largest IT services company told PTI in an interview. Stating that the deal pipeline is “strong”, Krithivasan said the current situation where some clients have stopped discretionary spending is not resulting in any pricing pressures.

In fact, there has been a slight uptick in pricing both on-year and from a sequential perspective, he added.

Without disclosing the share of clients’ discretionary spends in its over $30 billion revenue, Krithivasan said such spends are a “significant” part of the topline, but appeared unfazed by the current trend of such revenues being impacted. “My belief is that this uncertainty will be short-lived. Within a period of months or whatever, it will be solved,” he said, adding that the strong order book will help it on the revenues front.

If there has been a decline in the conversion of the total contract value or new deals to revenue bookings, Krithivasan said there has not been any significant change, and added that it will take months of the uncertainty prolonging for it to change.

He said once the situation is resolved in the US, it will help the company resume growth in the North America business, whose share in the overall revenue pie has declined to 48 per cent now.

Progress in trade talks between India and the US will not have a direct impact on the company’s business, he said, adding that prolonged lack of growth in the North American country will impact client decisions across sectors.

Given the prevailing conditions, some clients are looking at cost optimisation measures, he said, adding that compressing the pricing from IT vendors is among the levers used by clients in this regard.

There may be some situations where the company may have given some tactical discounts as well, he said.