Tata Consultancy Services (TCS), India's largest IT company, hopes to cash in on the economic revival whereby its clients could have bigger IT budgets and discretionary spends during the next financial year, a report published in the Economic Times says.

TCS chief executive officer and managing director N. Chandrasekaran was quoted as saying that client IT spend is slated to go up in the fiscal year 2011-2012 when CXOs may also have more cash to spend as part of their discretionary expenses.

Chandrasekaran made this statement on the sidelines of the Nasscom conference in Mumbai. On its part, the apex body of IT and BPO companies (Nasscom) has also indicated that client budgets will go up between two to four per cent in the next 12 months.

However, the TCS head honcho was cautious in making revenue predictions and said some of the company's IT clients had suggested an increase in their IT spends in the coming months. Chandrasekaran said TCS will also focus on non-linear growth that includes platform business, outsourcing and small and medium business.

In addition, the company will also tap government IT projects, both in the domestic markets, as well as in other economies like the United States and the UK, he said but confirmed that this part of the business may only contribute about one per cent of their revenues.

Chandrasekaran said TCS was also keen on acquisitions and would continue to scout for companies that provide a strategic fit in terms of lines of business and customers.