Tcs wipro slight uptick in digital and omni channel

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Unformatted text preview: cus America and Europe area. ** Clients continue to be stressed in terms of their budgets, particularly in North America and Europe. In Asia Pacific, spends are related to expansion initiatives. ** Growth is driven by consolidation in current markets for the clients as well as expansion into new markets. It is driven by all three segments of application maintenance, infrastructure and BPO. **Key spend areas are technology infrastructure for compliance, customer centric projects and mobility solutions. Page 13 Source: Company data ** Retail continues to be relatively muted with a move to digital and integrating the on-premise and online customer interface. Deal flow also remains muted ** Media & publishing is going through a major **CPG is strong in North America with transformation with the whole business consolidation of multiple platforms and becoming digital; this transformation is global deployment being the theme resulting in shrinkage of traditional spend while Europe remains challenged on a areas. This segment presents a big mediumstrong cost reduction focus. term opportunity for vendors on the digital side. 7 January 2014 Financial Services Software & Services Company Indian IT Services Deutsche Bank AG/Hong Kong Figure 13: Comments on demand in key verticals 7 January 2014 Software & Services Indian IT Services Currency unlikely to be a headwind We do not expect significant INR appreciation in FY15E While the outlook for demand and pricing (owing to a pick-up in discretionary spending) is improving, in our view the only risk to our earnings growth forecast is from a strengthening rupee. Although the rupee depreciated 12.3% in 2013, we do not believe that it will appreciate significantly in FY14E. Our economists believe that with India’s current account deficit reducing substantially and capital flows’ outlook having improved, the rupee would remain broadly stable in 2014. However intermittent volatility could be expected based on the Federal Reserve’s decision on withdrawing the stimulus program. Our economi...
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