Tata Consultancy Services (TCS), among the world’s top 10 software services exporters by revenues, is relatively sanguine about the prospects of its Europe operations despite the crisis facing the EU. Europe is the company’s third largest market contributing 9.32 per cent of 2010-11 revenues behind North America, at 53.87 per cent and the UK, at 15.46 per cent.

“In Europe, our exposure is primarily to countries such as Belgium, Netherlands, Luxembourg, the Nordic region, Germany and Switzerland. Of these, the Nordic countries and Swit-zerland are not part of the euro while the rest have strong economies themselves,” S Mahalingam, CFO of TCS, said.

Due to the company’s dealings with multinational companies who form the majority of its clients the diversified nature of its clients operations has so far prevented TCS from seeing demand evaporate. In fact, in the quarter ending December 2011, Europe led the growth across the mature markets TCS serves with the regions contribution to revenues rising 18.1 per cent sequentially as compared to 13.3 per cent growth in the US and 9.5 per cent in the UK.

“In 2010-11, Europe’s contribution to TCS revenues was Rs 9,250.67 crore. The rate of growth in revenues from there has increased from high single digits to touch double-digit levels,” said a TCS spokesperson in an email response. TCS is confident that even if the Euro zone’s troubles do not get solved soon it would continue to see growth in business there.

“When companies have problems they have got to cut their budgets. In such a scenario they find that the value created by outsourcing to India based players is much higher,” said Mahalingam.

The company is riding IT demand from companies preparing to tap consumers through digital media and firms wanting to get leaner to survive tough times. “Big events have a global impact but strategically speaking we are diversified and this gives us strength,” said Mahalingam. The company is also trying to insulate itself from protectionist moves in its biggest market USA as well by adapting its delivery strategy for clients.

The company is increasingly offering its clients a mix of service delivery from centres in the UK, the US, Germany, South America and China apart from India while trying to economically service customers.

(With inputs from Jharna Mazumdar in Mumbai)