Due to issues in North America, India's top exporter of software services, Tata Consultancy Services, intends to concentrate more on countries like Japan, Latin America, and Southern Europe, according to its CEO.

The industry leader revealed its lowest quarterly profit increase since 2020, and revenue contributions from its primary market, North America, have decreased for four consecutive quarters, prompting the plan to diversify even further.

"I wouldn't say we are consciously reducing our North America exposure, but we are consciously increasing our play in other geographies because we want to work more in markets like Latin America, Southern Europe or Japan," K. Krithivasan said.

For the $245 billion Indian information technology industry, North America has been essential; numerous companies get more than half of their income from the continent. Due to pressure from inflation and economic uncertainty, IT clients there have been hesitant to invest in discretionary initiatives in recent quarters.

Due to this, TCS is now considering additional areas where there is significant possibility for expansion despite obstacles like language.

For instance, Japan's income contribution to the Indian IT sector is "very miniscule" despite the country being the one of the major tech spenders, Krithivasan added.

TCS, a Mumbai-based company that has historically generated more money serving clients overseas, is likewise enlarging its market share domestically.

In the most recent third quarter, India's revenue share reached 6.1 percent, the highest since the second quarter of fiscal 2018. TCS's income was derived from 2.1 percent in Latin America.

The CEO of TCS is "generally optimistic" about the next fiscal year, despite the fact that many analysts deemed the previous one to be a "washout" for the Indian IT sector.

Wipro issued a warning this week that it would conclude the year with a fall in sales for the first time in three years, Infosys adjusted its annual revenue prediction, while HCLTech reduced the top end of the same metric.

"We believe it (fiscal 2025) could be a better year than fiscal 2024," Krithivasan said.