Most large verticals contributing to growth while any

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Unformatted text preview: ven TCS’s diversified geographical exposure and strategic vendor status, it is likely to benefit most. This is reflected in its bullish commentary for all the key verticals. We believe Infosys is struggling to gain share in verticals outside of financial services. Deutsche Bank AG/Hong Kong Page 11 7 January 2014 Software & Services Indian IT Services Figure 12: Demand outlook for key verticals Financial Services Manufacturing Telecom, media and publishing Retail and CPG Infosys TCS Wipro HCL Tech Source: Deutsche Bank Page 12 Deutsche Bank AG/Hong Kong Manufacturing Telecom, media and publishing Retail and CPG ** Demand in financial services is increasing particularly in US. Seeing early signs of spending in new products and channels. Spends in digital transformation have also seen a pickup. **With the portfolio still skewed towards wireline telecom space, growth in wireless and cable will be unable to drive overall growth in this vertical. Expect growth to be muted in CY14. **Focus on reducing nondiscretionary spends has led to a slowdown in transformational deals in retail and CPG. Seeing a new wave of vendor consolidation in this vertical aimed at demonstrating cost savings. ** Traditional focus on spend areas like cost takeouts, regulatory and compliance areas continue. ** Hitech and automotives are showing good traction, particularly in US. ** Discretionary spend is very limited in this vertical. ** Momentum in business intelligence, cloud-based services and digital commerce spends are better. **Deal velocity in financial services has improved slightly. **Global expansion is leading the spend agenda with newer technologies like digital, connected vehicles and analytics bringing up the discretionary part. **Focus on large deals has created a better pipeline of large deals in CY14 but conversion is slow. **Overall, expect the retail and CPG vertical to be volatile in CY14. ** Expect BFSI sector to do well and it remains one of the strong verticals for TCS. **...
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This document was uploaded on 02/06/2014.

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