MUMBAI: With discretionary spending by clients in US under stress, Tata Consultancy Services (TCS), India's top software exporter, has decided to focus on developing markets, including India.

According to a recent survey by ChangeWave, a software advisory firm in US, one in four respondents of the US corporate IT will spend less on software in coming months. ERP and CRM applications will show weakness moving forward.

A similar report prepared by Giga, a global technology advisory firm, on the recent economic scenario said that the US economy, to which the fortunes of Indian software exporters are so closely tied, is showing a rise in spending on computer hardware and network equipment, but software spending continues to slump.

N. Chandrasekaran, COO of TCS, said, the company would focus on developing markets, including India, and expects more clarity on the discretionary spending (US and Europe clients) by the end of the first quarter.

Even as the US and European software market is facing a slump, India provides a lucrative market as various government departments are set to spend $6 billion in various projects under its e-governance initiatives.

IT giants like TCS, Wipro and HCL have already won major government business in recent months with TCS having won a Rs 1,000-crore project.