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Business News/ Companies / TCS to invest in digital space; expects govt led initiatives to drive growth
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TCS to invest in digital space; expects govt led initiatives to drive growth

At the company's 20th AGM, Cyrus Mistry says the digitisation programmes by the government will push its India revenue

Cyrus Mistry, chairman of Tata Group and N. Chandrasekaran, CEO & MD of Tata Consultancy Services during the company’s 20th Annual General Meeting in Mumbai on Tuesday. Photo: PTIPremium
Cyrus Mistry, chairman of Tata Group and N. Chandrasekaran, CEO & MD of Tata Consultancy Services during the company’s 20th Annual General Meeting in Mumbai on Tuesday. Photo: PTI

Mumbai: Tata Consultancy Services Ltd (TCS), India’s largest IT services company, said it will continue to make significant investment in the digital space and expects that government-led initiatives will drive growth in the near future.

At the company’s 20th Annual General Meeting (AGM), Tata Group chairman Cyrus Mistry said TCS has been the biggest technology provider to the government, including for the electronic initiatives ‘Passport Seva’ and income tax e-filing. He believes that the digitisation programmes by the government will push its revenue in the country.

“We hope that the ‘Make in India’ and ‘Digital India’ will drive our Indian revenue in the time to come," Mistry said in reply to a query from one of the shareholders at the AGM.

As part of its plan to focus on enhancing its digital platforms, TCS said it has made large investments on technology and to train around one-third of its employees on various digital technologies. To do this, it has also signed up with various companies and universities to train its employees.

“Digital is a key focus area. We have built a number of digital cloud platforms and will have 100,000 employees trained in digital technologies this year," said N Chandrasekaran, chief executive officer, TCS.

The Economic Times reported on Tuesday that TCS had conducted 2.59 million days of online training in technologies and domains, resulting in 72,000 new certifications, 400,000 courses completed and 120,000+ competencies acquired, in the last year.

TCS employs over 300,000 people across 55 countries. The company plans to add around 60,000 people this fiscal year. A high attrition rate has been one of its biggest challenges with the company losing around 14.9% of its employees in the last financial year, its highest since the last decade.

“We will keep tracking the attrition rate…However our attrition rate is much less than the industry rate. And TCS has got some of the best talent," Mistry said.

Chandrasekaran added that the company had lined up strong employment engagement programmes and will continue to focus on employees. “We have always said that it is important to maintain a good retention rate and continue to invest in our employees," Chandrasekaran said.

The company recently announced one-time bonus worth 2,628 crore to its employees to mark 10 years since the company started trading publicly.

TCS missed analysts’ revenue estimates for the third straight quarter in the three months ended 31 March due to unfavourable currency fluctuations and weaker demand for software services from clients in the US and the UK.

The company reported a decline in quarterly profit. However, the company’s fourth-quarter profit rose 11.5% to 5,906 crore, excluding the one-time payment.

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Published: 30 Jun 2015, 09:59 PM IST
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