Last week, rival Infosys Technologies Ltd (INFY.BO) also said currency volatility could crimp growth for India's $60 billion outsourcing sector after reporting a better-than-expected profit and raised its annual sales forecast. [ID:nSGE69D09D] "With our major operating currencies continuing to be volatile, we remain vigilant on this front," Chief Financial Officer S. Mahalingam said in a statement on Thursday. The rupee's INR=IN 6 percent rise since the start of September is a cause for concern fo

r the sector, which draws more than half its revenue in dollars and has significant rupee expenses. When asked at a news conference what the impact would be for TCS, Chief Executive N. Chandrasekaran said: "There will be big headwinds in the next quarter." Indian outsourcing firms are also concerned about what they call "protectionist measures" by the United States, which include a new immigration bill that would raise the cost of work visas. However, TCS, which manages complex computer networks and main

tains technology operations for Fortune 500 firms, is seeing demand for its services improving from its mainstay financial clients, retail and manufacturing, Chandrasekaran said. The company's business volume grow 11 percent in the second quarter. CEO Chandrasekaran said the company closed eight "large" deals in the period and was looking at at least 11 more. "From our point of view we think the demand recovery to be solid. And we expect that it is going to continue but we are going to always use the caveat that we are