BackOnly a matter of time before TCS doubles its revenues to hit the $50 billion mark: CEO
TCS is confident that technology spending will continue to grow
PremiumAt the current pace of growth, it is only a matter of time for Tata Consultancy Services Ltd (TCS) to double its revenues and hit the $50 billion-mark, chief executive Rajesh Gopinathan said in a letter to shareholders in its annual report FY 2021-22. TCS clocked $25.7 billion in revenues during FY22.
For this to happen, TCS is focusing on two things. “One, we want to arrive at that milestone with a more balanced portfolio, with a much larger proportion of business transformation revenues, so we have two equally strong growth engines for the journey ahead. For this, we want to build on our initial successes in the G&T (growth and transformation) opportunity, and put in place a structured way to deepen existing innovation and transformation engagements, while expanding the number of clients for whom we provide such services," Gopinathan said. “Second, as we get larger, we shouldn’t lose sight of what has brought us thus far – our customer centricity."
TCS is confident that technology spending will continue to grow. “We are amid a multi-year technology upgrade cycle that provides strong, structural growth drivers for the next few years," Gopinathan added.
The cloud adoption trends strengthened further in FY22, with more clients embarking on multi-horizon cloud transformation journeys. However, TCS believes there has been a change in mindset. “During the year, enterprises moved from thinking of technology-led innovation as a way of coping with pandemic challenges, to looking at it as a means of powering their growth and transformation, especially in the case of clients who had already moved their most critical workloads to the cloud," Gopinathan said.
TCS has recently rolled out a new organization structure with the aim to achieve two imperatives. “It retains the atomicity of our earlier architecture, and its three dimensions – industry verticals, horizontal service lines and geography-based sales. We have now added a fourth dimension, the stage of the customer’s relationship journey with TCS," Gopinathan said.
TCS has rearranged the existing units into three business groups, each aligned to a particular phase in the customer relationship journey: the Relationship Incubation Group that will provide the high-touch, high engagement, delivery-focused model that new clients require; the Enterprise Growth Group which pulls together capabilities from across the different service lines to stitch together solutions that address clients’ business needs when the relationship is in its hyper growth phase; and the Business Transformation Group that will manage the largest clients and help them accomplish their growth and transformation objectives.
Commenting on the geo-political tensions in Europe, Gopinathan said that the resultant impact on global economic growth are real threats.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
