TCS Sets Its Eyes On India For Biz Growth

Coming to our long-term growth strategy, we are investing significantly to create a large footprint in emerging growth markets. Top bets include India, APAC, Latin America, Middle East and Africa. We believe these markets are likely to turn into a sustainable driver of long-term growth - K Krithivasan, CEO & MD, TCS, said during Q2 analyst call

Bengaluru: India’s largest IT services firm, Tata Consultancy Services (TCS) is focussing on growth markets like India, APAC (Asia-Pacific), Latin America, and others as part of its long-term strategy for sustaining future growth.

According to the company management, India as a market has grown substantially in the last two quarters.

“Coming to our long-term growth strategy, we are investing significantly to create a large footprint in emerging growth markets. Top bets include India, APAC, Latin America, Middle East and Africa. We believe these markets are likely to turn into a sustainable driver of long-term growth,” K Krithivasan, CEO & MD of TCS, said during the Q2 analyst call.

“A scalable presence in these markets is likely to provide the muscle for growth in TCS’ overall business over the next couple of decades. We are establishing robust partnership with our ISV and other ecosystem partners to drive unparalleled efficiency in our operations across applications, infrastructure, engineering and business operations for our customers,” he added.

During the second quarter ended September, all growth markets of TCS grew above the company average.

India led the pack with whooping 95.2 per cent growth, while Middle East and Africa grew at 7.9 per cent during this period. Asia Pacific grew 7.5 per cent, while Latin America grew 6.8 per cent in the second quarter.

The growth surge in India market was primarily driven by ramping up of BSNL deal. TCS bagged an order worth over Rs15,000 crore ($1.8 billion) from BSNL to deploy 4G networks across India.

The company is overseeing the deployment of 1 lakh sites to upgrade the state-run telecom operator’s 4G network infrastructure.

“Overall, 100,000 sites need to be deployed (as part of BSNL deal). We are around the halfway mark on that. And that is the incremental information we can share on it. There is still scope to go. And like we have been sharing in the past, the entire thing is from the manufacturing until the installation and beyond in terms of acceptance. So, there are various milestones also which are intermediately built into it,” Samir Seksaria, Chief Financial Officer of TCS has said.

According to the company management, the BSNL deal is running at its peak, and TCS would expect another quarter of such peak performance.

“Yes, there will be a maintenance phase. Currently, we are on track to close (the existing deal) by Q4. And Q1, there could be some residual work and some maintenance work will be there,” Krithivasan has said.