Mumbai: India’s largest software services company, Tata Consultancy Services Ltd (TCS), said it will invest Rs1,400 crore this fiscal year to meet infrastructure and technology needs.
TCS, which hit $4 billion (Rs16,400 crore) in annual sales as part of doubling its revenue twice in last four years, said it expects to keep a similar growth momentum in revenue this year as well. It also plans to expand its 85,000-strong employee base to 100,000.
“We will be investing up to Rs350 crore in technology and rest will be utilized for infrastructure development,” said S. Ramadorai, chief executive officer, on the sidelines of the company’s annual shareholders meeting. TCS needs to invest in infrastructure so that it can accommodate the 15,000 new employees it plans to hire. Besides, the corporate office of the company is also moving to a new location in Mumbai.
TCS is also focusing on Tier II cities in order to save costs and keep attrition levels low and plans to set up a new developmental centre in Mangalore, the company said.
Talking about the appreciation of the rupee against the dollar, Ramadorai agreed that it “is a concern” but refused to elaborate on the impact it might have on the company’s earnings in the current quarter. The rupee has risen about 10% since January.
Over 52% of the company’s total revenue of Rs 18,685 crore in 2006-07 was from the Americas.
TCS doesn’t break out its US revenues in its latest annual results. TCS has won at least $1 billion in non-Indian contracts in 2007-08.