With Europe slowing, TCS says North America to drive its growth in FY23

The IT major indicated that clients in Europe are more cautious on tech spends given the possibility of deeper recession and ongoing conflict in Eastern Europe, leading to delays in decision making

IT services major Tata Consultancy Services' (TCS) Q1FY23 results were a mixed bag with revenue beating estimates and margins disappointing. But the larger concern is the fact that macroeconomic pressure is already pulling Europe down and and the company said that the US will be the growth driver in FY23.

During Q1FY23, TCS' UK business was down 3.3 per cent sequentially and Continental Europe business was down 0.7 per cent. However, on a year-on-year basis, the UK business grew by 12.6 per cent and Continental Europe business grew by 12.1 per cent.  

Unlike other players, softness in Europe is a