Personally I sold of all my shares in TCS in the begining of Feb 2007.
It seemed overvalued.
I feel there would a decreased return on Capital employed.
But there have been some major contributions to TCS income.A very big chunk of Satyam conracts have shifted to TCS.
TCS has beaten Info and Wipro in this game.
But Infosys ROIC is better than TCS.
Certainly this downturn will result in changing business models for all US companies. So around 3 yrs down the line TCS ,Infosys,WIPRO will no longer have the model advantage.
TCS still does not give a competitive pay packet in India,these US companies do.But the difference is TCS sends more employees onsite to USA to work.They get paid in dollars which compensates for the reduced salary in India.As soon as the project is over they come back to India.The amount of people in bench (without projects) in USA is very less.It may be high in India but they pay in rupees.
US companies on the other hand usually have US employees work in their US branches and pay in dollars (higher salary than indian counterparts) and thus resulting in a reduced ROIC.A higher bench payout in dollars is the reason.
Moreover these companies insist on large size deals.
Indian counterparts take even single member projects.
This advantage will reduce in the future when they downsize their US workforce and keep more people who are on deputation from low cost countries.
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