**Limitations of H-1B Visa Dependence: TCS CEO Shares Insights**
In a recent interview with TCS CEO K Krithivasan, he shed light on the factors behind TCS’s lackluster performance, citing the deferral of discretionary spends by clients and seasonal effects as key contributors. Despite these challenges, Krithivasan remains optimistic about TCS’s prospects for 2025, aiming to surpass the previous year’s performance. During his conversation with TOI, he delved into the pressing issue of H-1B visa matters and provided valuable insights into the company’s business outlook.
**TCS’s Stance on H-1B Visas**
TCS, a prominent player in the tech industry, is among the largest beneficiaries of H-1B visas. Addressing concerns about the impact of changing political landscapes, Krithivasan emphasized that TCS’s reliance on H-1B visas is relatively limited. He highlighted that the company receives between 3,000 and 4,000 H-1B visas annually for a workforce of approximately 600,000 employees. Krithivasan pointed out that over 50% of TCS’s workforce in the US is locally hired, emphasizing the diversified recruitment strategies in place. Whether it’s offshore, nearshore, or onsite operations, each plays a crucial role in TCS’s service delivery model. Krithivasan expressed confidence in the company’s nearshore operations, citing successful endeavors in regions like Mexico for North America.
**Industry Shifts and Technological Advancements**
Krithivasan also touched upon the structural shifts occurring in the industry, noting that companies are achieving productivity gains without significantly increasing headcount. He highlighted the transformative impact of new technologies, particularly AI, on software engineering practices. Krithivasan emphasized TCS’s proactive approach to adopting cutting-edge technologies, with over 500,000 associates trained in GenAI deployment for clients. He underscored the importance of staying ahead of technological advancements to drive innovation and meet evolving customer needs.
**Navigating Performance Challenges**
Despite facing challenges like seasonality and a subdued demand environment, TCS is poised for growth in the coming quarters. Krithivasan acknowledged the impact of headwinds in Q3, leading to sequential negative growth in various geographies. However, he expressed confidence in TCS’s future performance, citing promising client discussions and a robust order book as indicators of a positive growth trajectory.
In conclusion, TCS’s CEO K Krithivasan’s insights provide a comprehensive overview of the company’s strategic focus, resilience amid industry challenges, and commitment to leveraging technology for sustained growth. As TCS navigates the evolving business landscape, its proactive approach to innovation and talent development sets the stage for continued success in the years ahead.
