TCS mulls acquisitions in Europe, US healthcare to boost growth

India’s largest IT services company Tata Consultancy Services (TCS) Ltd is eyeing acquisitions in Europe as well as healthcare technology companies in the US to boost growth, its chief executive said on Tuesday, as India’s largest IT services exporter post a 12-per cent rise in quarterly profit.

India’s export-driven outsourcing firms are betting on US healthcare reform to fire up revenue growth which is slowing as the $150 billion industry’s key financial and manufacturing clients spend less on software services.

The United States is the biggest market for the country’s outsourcing industry, which is dominated by TCS, Infosys and Wipro. It also accounts for 90 per cent of all healthcare related contracts for Indian IT outsourcing firms.

“We’ve said US healthcare is important to us and we have also said Europe as a market is important to us from an acquisition point of view,” said TCS CEO N. Chandrasekaran.

TCS has joined the bidding process for Perot Systems, an IT management business of Dell Inc, people familiar with the matter told Reuters last week.

Perot Systems is major provider of IT consulting to hospitals and government departments.