BFSI is the largest vertical for TCS and grew 6.2% sequentially during the second quarter ended September and contributed 31.3% to the company’s total revenues
Bengaluru: India’s largest IT services firm Tata Consultancy Services (TCS) Ltd is eyeing strong growth in the banking, financial services & insurance (BFSI) vertical in Europe as they are undergoing digital transformation and renewing their existing partnerships.
BFSI is the largest vertical for TCS and grew 6.2% sequentially during the second quarter ended September and contributed 31.3% to the company’s total revenues.
“Many of the European banks and insurance companies are going through a second generation of outsourcing as their earlier deals were stuck 10-15 years ago. In the last 2-3 years, we have been able to position ourselves very well in the Nordics, Italy, and Baltics," Krithi Krithivasan, president, BFSI, TCS said in an interview. “We have also invested in strong teams in each of these regions which are yielding benefit now."
The growth in the BFSI sector is being driven by the digitalization of the customer-facing and back office processes as physical interactions with customers are restricted due to the pandemic, said Krithivasan. “Also, in contrast to the 2008 liquidity crisis, this time banks are a solution to the problem as the government is routing all stimulus measures through the banks."
Banks are also investing heavily in moving to the cloud which offers greater flexibility and also the ability to launch new products and solutions. “Cloud is being adopted not just as a cost play but also for resilience," said Krithivasan.
TCS’s European Cloud Centre in Finland which provides end-to-end infrastructure services has just gone live with two financial services clients. “This centre has been scaled up to service more clients within the European Union," said Krithivasan.
Recently, TCS announced two strategic acquisitions centred around strengthening its play in the BFSI vertical. In November, it acquired Postbank Systems AG, the technology services unit of Frankfurt-based Deutsche Bank AG to expand in Germany and strengthen its growth outlook.
In the same month, TCS said it will acquire certain assets and employees of Pramerica Systems Ireland from insurance firm Prudential Financial Inc (PFI). The deal allows TCS to expand its near-shore capabilities as it will service other customers as well in Ireland, the UK, Europe and the US.
“Ireland is uniquely positioned to play a leading role in the digital economy. This key investment deepens our relationship with PFI and gives us a new delivery capability in Ireland with specialized expertise, that significantly strengthens our ability to meet the growth and transformation needs of our customers globally," said Krithivasan.