TCS expects FY25 to be a better year than last fiscal
Economic growth has been stronger than expected in the second half of2023 in the United States, and several major emerging markets and developing economies
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Notable Points
• In its annual report, the IT firm noted improving macros in its largest market, the US
• The company said its market share globally stood at 2.1 percent
• 55% of its employees are working from offices all working days a week
• The company said it is gaining market share owing to vendor consolidation
Bengaluru: India’s largest IT services company, Tata Consultancy Services sees FY25 to be a better year than the last fiscal on the back of improving macroeconomic conditions.
The company in its annual report highlighted that economic momentum in the key US market was seen during the second half of 2023 though European market has seen slow down. In its annual report, the IT firm said if inflation and war-like situation come under control, it may lead to higher spending on technology by enterprises.
“Economic growth has been stronger than expected in the second half of 2023 in the United States, and several major emerging markets and developing economies,” TCS said in its annual report. It, however, noted that Euro area is experiencing subdued growth.
In terms of its performance, the IT firm said that it is gaining market share in the global technology outsourcing market on the back of its offerings and vendor consolidation.
“The global IT services industry continues to be a highly fragmented one, with even the largest provider having amid-single digit market share. TCS is among the largest IT services providers globally, with a market share of 2.1 percent. TCS’ outperformance is significantly higher over the last decade,” it noted.
On the back of a strong deal pipeline, the company expects to post better revenue growth than the last fiscal year. “Our all-time high order book, continued deal flow and the pipeline velocity give us confidence in our business momentum,” K Krithivasan, CEO of TCS said in the annual report.
In terms of employee retention and engagement, the report pointed out that more than half of its employees are working from offices on all working days of the week.“TCS has approximately 55 percent of its employees working from the office on all working days of the week,” the annual report noted.
Return to Office (RTO) remains a key priority for the company as it intends to better integrate new joiners and stay deeply engaged with all its people, thereby fostering ‘TCS Culture’ and the ‘TCS Way’.
It noted that the attrition in the IT services space trended down throughout the year and was 12.5 percent for FY 2024. “At TCS, three months’ notice is required from either side for termination,” it said.
With regard to Generative AI training, the company noted that around 3,00,000 employees have been upskilled in the GenAI technologies in FY24.
