update India's IT services giant Tata Consultancy Services (TCS) hit a milestone this week, crossing US$4 billion in revenues for the first time.
For its latest financial year ended Mar. 31, 2007, TCS reported a 41 percent year-on-year revenue increase to US$4.3 billion on net income of US$950 million.
Explaining the revenue growth, TCS CFO S. Mahalingam said in a statement that the company carried out "several levers in terms of pricing, offshore leverage and cost controls" to boost its profit margins in light of a fluctuating rupee.
The company identified several service segments as high-growth drivers, including infrastructure, consulting and business intelligence services, which grew by more than 100 percent over the past year and currently contribute 18 percent to TCS revenues.
The services provider also scored several major customer wins in the last year, such as its US$146.6 million deal with Australian airline Qantas Airways, a US$100 million five-year contract with Bank of China, and deals worth US$3.3 million deal and US$3.9 million with Singapore's Temasek Holdings and Parkway Group Healthcare, respectively.
N. Chandrasekaran, TCS' head of global sales and operations, said: "Our full-services play...is translating into a very healthy pipeline leading to growth across services and domains in mature and emerging markets. Last year's large wins are ramping up as planned."
To cope with the demand, TCS said, it added 22,750 employees in the past year and currently has a staff strength of over 89,400 professionals from 67 different nationalities across 47 countries.
With a compound annual growth rate of 48 percent over the last three years, the Asia-Pacific region, including Japan, Australia and New Zealand, was the company's fastest growing market.
And this growth momentum is expected to continue over the next few years, Girija Pande, executive vice president and head of TCS Asia-Pacific, told ZDNet Asia.
"Over the last year, we made significant investments in Asia-Pacific, including the acquisition of Australian business consultancy firm TCS Management," Pande said.
He added that TCS also set up a near-shore delivery center in Singapore to support the company's banking and financial services customers in the region, and established joint venture company TCS China with the Chinese government.
Last month, the company announced it will embark on a marketing initiative to raise its corporate profile and focus on providing assurance to customers that the IT project deployed will benefit their business.
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A note of reality needed here..I used to work in Tata Consultancy Services earlier. Frankly, I was shocked to see the level of staff exploitation as well as lack of ethics in their client work culture, contrary to the general impression created by them to the Industry abroad. I remember that they completely copied a major Benchmarking study from one client to another without any sincere effort altogether. It is sad to see the Industry running after and incredibly enriching these kind of firms, who fundamentally grew from highly unethical and exploitation driven business models. Also, it may surprise many of us to know the hard fact that none of the good and qualified professionals stayed long in TCS over the past many years. All the good genuine professionals with initiative and ideas were harassed and suppressed by the highly predominant low quality and less educated old timer staff in TCS, and left the firm after demotivation in this environment. Result it that all the low quality and less educated people have stuck to TCS past 10-20 years and occupying most of senior positions nowadays, while 95% of the good qualified people left due to demotivation and harassment etc.. LET THIS BE A CHALLENGE TO TCS, IF THEY CAN REFUTE THIS FACT.. There are hundreds and maybe thousands of ex TCS employees who can vouch for this sad fact..
Posted by anonymous on Thursday, October 04 2007 08:14 AM