Tata Consultancy Services (TCS) has had a very profitable year, and has consolidated its market leadership to become the first $10 billion IT company from India. N Chandrasekaran, CEO and MD, TCS, talks to tata.com about the factors that drove this unprecedented growth, the challenges that lie ahead, and the company’s plans for the future.
What were the factors that drove the impressive growth reported by
TCS for fiscal 2011-12?
TCS’s full services capabilities continue to be leveraged by customers with new service lines growing at a fast pace - infrastructure services, enterprise solutions and business process outsourcing service lines each clocked more than $1 billion in revenues in 2011-12; all other service lines also grew by double digits.
How does it feel to be the first IT services firm from India to cross
the $10 billion turnover mark?
We have created a solid platform and acquired a depth of knowledge across industries. We have also learnt how to execute on scale and build long-term relationships with our customers. We have made a difference by using technology in segments such as healthcare, education and financial inclusion.
All this makes us very proud of what we have been able to achieve. But at the same time, we know that success is a journey and we are focused on taking the company to the next stage of growth.
What are the reasons for continued bullishness in 2012-13, especially
when other IT majors from India are not too optimistic about growth prospects?
Our approach has been very simple. Everybody realises that the global macro economy will continue to be uncertain and volatile for some time to come. But corporations have to run their businesses in this environment – they will continue to optimise and go for growth. So, to be effective, we have to understand the environment they are in and how to work with them to meet their goals. That has been our approach and it seems to be working.
TCS has also built a holistic portfolio of business across industries and services. This helps us to achieve balanced growth in this dynamic environment. New technologies such as mobility, cloud and digital will be another stream that will drive growth. We expect markets in the US, Europe and the UK will continue to do well. We see a lot of traction in emerging markets, including India, Latin America, Egypt and Middle East.
Is TCS looking at newer geographies and sectors to ensure continued
What are your views on the depreciating rupee and the impact it will
have on India's IT and software services exports? Will the decline in the value
of the rupee be a long-term trend, or do you see some corrections over the next