Tata Consultancy Services (TCS) has planned a capital expenditure of around Rs. 4,500 crore for current year. It will invest around Rs1467 crore in equipments and Rs 3000 crore in land. TCS is a leading information technology services provider company in the world. TATA is expanding its projects in SEZs to avail the tax benefits from government.

Tata Group Company, TATA Reality will invest in land on the behalf of TCS. It was disclosed by TATA’s chairman Ratan Tata while addressing the company’s shareholders on its 40th annual meeting. The company had 1.11 lakh employees as on March 31, 2008. It has noticed the lowest attrition rate in the industry at 12.6 per cent with high highest retention rate among its competitors.

Sub-prime crisis and the oil and commodity price escalation in North America has affected the company’s business. North America contributes almost 50 per cent of the company’s business

Commenting current market scenario Mr. Tata said,” IT contracts will be there. Off shoring will be there. They go through some readjusting, but these (off shoring) are the measures which will help the banks to tide over the current crisis. TCS needs to differentiate itself by creating deeper domain knowledge, retain talent, expand its portfolio of products and services, leverage its network of global network delivery centers, and provide end-to-end solutions.”

The company has increased diversification across geographies to address such risks in future. TATA is focusing on strengthening global development centers across the world. It is starting some new projects in current fiscal including software parks. The first phase of the company’s Chennai software park is ready. It will be among the largest software parks in Asia employing 3000 people. The second phase of Chennai Software Park would be ready by August this year.

Mr. Ratan Tata ruled out any plan of merger of TCS with Tata Communications systems and any overseas listing by company.