Some of its top clients like USAA,AC Nielson,Citibank,Boeing have drastically reduced the business and even stopped moving ahead with new projects. The impact was huge on the employees who are working onsite with the clients. Almost 60-80% of them from each project has been asked to go back to India.
AIG one of TCS’s biggest insurance clients is almost certain to go into oblivion over the next two years due to US Fed take over (loan). This will again impact TCS margins in near future. But Infosys could even be the worst affected in case of AIG.
Chrysler one of TCS’s big ticket business in recent years is already a company in loss and due to mismanagement TCS sent back 80% of its onsite employees past few months. Most of these employees came for the projects only few months back.
But one good news for TCS and other Indian IT companies has been raise in dollar compared to Indian rupee in the past few months. Dollar has appreciated more than 15% against Rupee in last 6 months.