TCS Revenues Upsurge As New Business Lines Shore ‘Em Up
posted in Outsourcing News and Top Outsourcing deals |Source: www.business-standard.com
As India collectively regains its lost confidence, Indian firms storm the bastions of the West, buying out western and Far Eastern firms, setting up of offices and centres, while doing business on an equal footing. And, none more so than Indian IT services provider - Tata Consultancy Services (TCS), who has made it a habit to better its performance every alternate year. It was in 2003 that TCS became the first Indian IT firm to cross the $1-billion revenue mark, in 2005 it went on to cross the $2-billion mark, and now in 2007, it has topped the $4 billion mark.
Who and where are the bulk of TCS’ clients located? Well, North America continues to account for over 50% of its revenues (52.3% in FY07), next comes UK at 20.3%, followed by India and continental Europe at 9% and 8.2%, respectively. As revenues from TCS North America cross the $2 billion mark, those of TCS Europe are scaling the $1-billion mark.
As for TCS verticals, its banking, finance and insurance (BFSI) segment continue to dominate the company’s services portfolio, contributing 42.2% of the revenues in FY07. Telecom comes next at 17%, while manufacturing stands at 15.3%.
New service lines such as infrastructure, global consulting, business process outsourcing (BPO) and assurance services now comprise 18% of TCS revenues compared with 10% in 2005-06.
Of 12-deals over $50-million (three of them over $100-million) were closed in 2006-07, of which five deals involved full services play, with customers using more than one of the services offered by the company.
Of its total revenues in 2006-07, TCS’ top clients contributed 6.6%, with the it’s top-five contributing 18.5%, while its top-10 clients accounted for 28.4% of the total revenues.
A look at TCS’ client roster and one finds it has 297 $1-million clients, 119 $5-million clients, 75 $10-million clients, 39 $20-million clients and 14 $50-million clients. Of its active 920 clients, 218 clients were additions made in the last financial year. The exemplary performance of this Indian IT services provider ensures that 96.8% of its revenue is from repeat business clients, with its offshore business accounting for 40.5% of the company revenue, while onsite stands at 55.7%, with the remaining coming from global delivery centres.
On the employee count, its headcount continues to grow along with its business and revenue intake, showing a gross addition of 32,462 (net 22,750) employees during the 2006-07 financial year and 8,613 (net 5,827) in Q4. The end of the fourth quarter saw TCS’ total employee strength standing at 89,419 professionals. And, at 11.3% TCS maintains the lowest attrition rate in the industry, however, last year, the figure stood lower at 10.6.
TCS also counts foreign recruits amongst it’s employees, with overseas nationals from 67-countries accounting for 9.6% of its total employee base, and it has around 26% of its employees belonging to the fairer sex i.e. women.
In a bid to further strengthen its global market position and communicate its strengths to customers, TCS in Q4 launched the first-ever global branding and marketing campaign by any Indian corporation called ‘Experience Certainty’.
As do, Infosys, Wipro, et al, TCS does India proud, while certainly sending a strong message around the globe: ‘The Indians are coming!’ Most certainly they are, as Indian Tigers go on the prowl! Not to make the West shiver with blood-curdling roars, only to take over the world, albeit in an ethical way! Let’s hear it for the Indian Tigers! Louder, none deserves it more than they!
