TCS: Harnessing Abundance
TCS saw strong growth in six industry verticals, averaging 13.2 per cent in aggregate
Photo Credit : Umesh Goswami
A part of the Tata group, Tata Consultancy Services (TCS) was established on 1 April 1968 and the year 2018 marks the completion of 50 years since its inception. Its values, entrepreneurial agility, customer-centricity, and social responsibility define what the company is and how it got here through five decades of disruptive changes. These years are direct outcomes of the vision and leadership of F.C. Kohli, S. Ramadorai and N. Chandrasekaran.
While the revenue for TCS for 2016 to 2017 was Rs 1,17,966 crore, the company saw 4 per cent growth in 2017-2018 with an increase in revenue to Rs 1,23,104 crore. “Last year saw a steady acceleration on a path that we were already on, and we used the opportunity to make some incremental changes. We refocused the organisation on the market opportunity presented by four big themes: Intelligence, Agility, Automation and Cloud, and reorganised the teams to align with these themes,” says Rajesh Gopinathan, MD & CEO, TCS.
TCS saw strong growth in six industry verticals, averaging 13.2 per cent in aggregate. Growth was led most by Energy and Utilities, which grew 26.8 per cent, Travel and Hospitality, which grew 22.4 per cent, Life Sciences & Healthcare, which grew 11.9 per cent and Communications & Media, which grew 11.6 per cent, except for BFSI, which grew 3.2 per cent and Retail & CPG, which grew 1.5 per cent.
TCS, being an early adopter of digital technologies, crossed $3 billion in digital revenue last year. In mid-2018, it grew 35 per cent, faster than last year by crossing $4 billion. After the immense success in digital revenue, TCS formed its Business 4.0 thought leadership framework in mid-2018 and bet big on this strategy to push digital revenue by over $5 billion this year. Business 4.0 allows enterprises to leverage new-age technologies to further enhance their growth capabilities and transformation agendas. For the quarter ended March, TCS revenue from digital engagements accounted for 23.8 per cent of its overall revenues, growing at 42.8 per cent year-on-year.
With a long list of accomplishments to its name, in 2018, TCS formed a fine number of partnerships with companies including Marks & Spencer, M&G Prudential, Shure Inc., and a multi-year $2-plus billion contract for third party administration with Transamerica. All partnerships were aimed at enabling the transformation of their businesses, rapidly enhancing their digital capabilities, the overall transition to a simplified cloud-enabled platform, and establishing a Global Development Center as well.
The Mumbai headquartered company recently announced the launch of TCS Pace, a new brand identity for its research, innovation and digital business transformation offerings to take research and innovation offerings to the next level. TCS Pace ports as physical hubs for collaborative experimentation with customers on disruptive ideas, technologies, solutions, processes, tools, and new business models. This new brand may as well position TCS as an innovation partner to forward-thinking enterprises across the world. “Brands are defined by the experiences they create and the value generated for their customers. TCS Pace brings together the best of TCS’ advanced research, solutions, experiential offerings, and digital customer engagements under one umbrella,” says Gopinathan.
Beyond business, TCS made a big difference for many communities across the world. In FY18, it volunteered over 570,000 hours for social and environmental causes in various communities. Its CSR programmes such as the Adult Literacy Program, BridgeIT in India, goIT and related programmes to encourage STEM education and careers among students in North America and elsewhere, are making a difference. These CSR activities are estimated to have benefited over 9 lakh people across the world.