IT services, consulting and business solutions firm, Tata Consultancy Services (TCS), has reported growth across its key markets for the June 2016 quarter, attributing the company’s strength to demand for business agility by customers.
Net income was up 4.7 per cent year-over-year to US$940 million, while volume grew at 3.4 per cent. During Q1, the company posted incremental revenues of $155 million – the highest in the last seven quarters – driven by strong growth across core markets in North America, the UK and Europe, with India a highlight amongst growth markets. TCS also added six clients with revenues of more than US$20 million, and four with revenues of more than $50 million.
“Strong execution and accelerating customer adoption of cloud, big data and analytics has driven broad-based growth across key markets and industries. Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge,” said N Chandrasekaran, CEO and MD, TCS.
On an industry sector basis, TCS said adoption of cloud, big data and analytics is driving demand in manufacturing, energy and utilities, and communications, while front-office transformations are supporting growth in the telecom and media sectors. Businesses in retail, life sciences, and travel, tourism and hospitality, are also increasingly adopting analytics to create rich experiences for customers.
Digital revenues now make up 15.9 per cent of TCS’ total revenue, and this has been driven by targeted recruiting and upskilling.
“Our rising employee retention rates for three consecutive quarters reflect our focus on engagement and investments we have made to build a strong digital talent base. This is paying off with over 165,000 TCSers now trained with significant expertise in new digital technologies that are rooted in specific domains,” said Chandrasekaran.
TCS was ranked by IDC as a Leader in its Marketscape report, ‘Worldwide SAP Implementation Services Ecosystem 2016 Vendor Assessment’, which was released in May.
