Tata Sons Chairman N Chandrasekaran on Thursday said the upcoming Digital India Act is “necessary” as it has been over two decades since the IT Act was promulgated and the technology landscape has changed since then. The head of the conglomerate which recently launched its new super app aggregating offerings of group companies also welcomed the government’s participative approach in writing the new law.
“I think the Digital India Act is necessary because so much has changed over the last couple of decades since the original IT Act was put in place,” Chandrasekaran said, addressing the annual general meeting of the group’s cash cow TCS virtually.
“I am glad that the government is engaged and developing a participative approach to develop the Digital Act which is an important thing, especially there are new issues like privacy and other aspects that will come into this (new) Act,” he added.
Chandrasekaran, who was elevated as the group chairman after heading TCS, said the IT major will now be getting into working in the hybrid mode, but made it clear that he prefers employees working from offices.
TCS has nearly 6 lakh staffers.
“While it is my personal preference to encourage employees to come back to work and I would like to see a significant number of employees back in the office, the company is already working with the employees. So, while there will be hybrid, we expect most employees to come back and return to the offices,” he said.
TCS will not be impacted by inflationary impulses in the global markets, from where it derives maximum revenues, Chandrasekaran said, adding that there will not be any curb on technology spends as digital transformation is a reality.
The Tata Group chairman further said inflation in the country will be range-bound and lower than the developed world.
Chandrasekaran, who has also served the board of RBI in the past, said, “…the Indian market is extremely well placed for growth and the inflation in India will be lower than the western countries and also with the regulators in India continuing to monitor this space, I am hoping that this (inflation) will be very range-bound.”
TCS continues its goal of having the operating profit margin between 26-28 per cent, but there are uncertainties due to volatilities, he said.
Asked about the Rs 1,200-crore provision made for Epic Systems’ trade secrets lawsuit, Chandrasekaran said he feels the money which has been set aside is “adequate”.
He said the company gets only 5 per cent of its revenues from the domestic market, and he does not see it hitting the double-digit mark for many years to come.
Meanwhile, Chandrasekaran also said the Tata Group is very keen to invest more in northeast India, create more jobs and also increase its spends in the social sector. PTI