New Delhi: Tata Consultancy Services (TCS) CEO says the company can navigate its way through any immediate disruption in the global economy and tap into the long-term demand for its services as the end-to-end The effort is to reach $50 billion in sales. of the decade
TCS, the largest player in India’s $227 billion technical services industry, will face multiple challenges from the Covid outbreak in China disrupting supply chains to the war in Ukraine as it upends Europe’s geopolitics.
The company also provides technical services and support to thousands of companies in the US and beyond that are adopting hybrid labor strategies, with employees working from both home and the office.
“The long-term demand environment is very strong,” TCS CEO Rajesh Gopinathan told Bloomberg News in an interview at the headquarters in Mumbai. “We’re leaning forward, we’re betting on growth.”
TCS reported an 18 percent increase in quarterly profit that beat estimates, fueled by deals in services that incorporate cloud computing and artificial intelligence.
Gopinathan, a soft-spoken TCS veteran who joined the company two decades ago and often wears a blue formal shirt, is known for promoting numbers and customer relations.
India’s outsourcing industry was created to help companies replace their own valuable technology workers with low-cost – and usually highly skilled – specialists such as TCS, Infosys and Wipro, but easier growth than labor arbitrage. has largely disappeared, forcing Gopinathan and his accomplices. To move to more sophisticated offerings like cyber security, cloud computing and artificial intelligence.
TCS last month revamped its internal structure with specialized groups as part of a broader move to win business from startups as well as large global enterprises. Gopinathan said that overhaul was carried out in less than a month.
“We are extremely agile in the way we restructure,” he said. “We are more micro-focused on the customer sets that we have and the opportunities that we have.”
TCS is Asia’s top outsourcer and is the cornerstone of Tata GroupIndian conglomerate with dozens of companies in everything from salt to automobiles. The tech services company closed its fiscal year that ended in March with revenue of more than $25 billion.
Rising labor cost is a challenge. Last week, TCS reported a 7.4% increase in fourth-quarter profit to Rs 9,930 crore ($1.3 billion), lower than analysts’ estimates, as margin cuts and the expense of retaining talent. in.
Startups are starting to compete with giants like TCS for the programmers and developers needed to run their businesses. Some newcomers are wooing talent with BMW motorcycles or a three-day work week – something the big outsourcers have resisted.
TCS employs approximately 600,000 people and aims to hire more than 40,000 graduates in the fiscal year through March 2023. Gopinathan calls the current scramble for employees “temporary” and argues that, ultimately, no one will be able to pay more for talent than TCS because it enjoys the highest structural margin.
“If you look at this industry, we enjoy the advantage of capturing a high point on the profitability side; everyone else is benchmarked below us,” he said. “So, no, I see no threat to my position. is visible.”
Ahead of his promotion, Chief Financial Officer Gopinathan said given the apparent challenges in the global economy, he has questions about why TCS is determined to hire and expand.
“I’m having a lot of debate that everyone is saying the outlook is bad – how are you positive? What’s out there, we’re reacting to that.”
“This is not to say that we are living in a bubble,” he said. “We are betting on that development knowing that even if we turn out to be wrong, we will back down and reset.”
TCS, the largest player in India’s $227 billion technical services industry, will face multiple challenges from the Covid outbreak in China disrupting supply chains to the war in Ukraine as it upends Europe’s geopolitics.
The company also provides technical services and support to thousands of companies in the US and beyond that are adopting hybrid labor strategies, with employees working from both home and the office.
“The long-term demand environment is very strong,” TCS CEO Rajesh Gopinathan told Bloomberg News in an interview at the headquarters in Mumbai. “We’re leaning forward, we’re betting on growth.”
TCS reported an 18 percent increase in quarterly profit that beat estimates, fueled by deals in services that incorporate cloud computing and artificial intelligence.
Gopinathan, a soft-spoken TCS veteran who joined the company two decades ago and often wears a blue formal shirt, is known for promoting numbers and customer relations.
India’s outsourcing industry was created to help companies replace their own valuable technology workers with low-cost – and usually highly skilled – specialists such as TCS, Infosys and Wipro, but easier growth than labor arbitrage. has largely disappeared, forcing Gopinathan and his accomplices. To move to more sophisticated offerings like cyber security, cloud computing and artificial intelligence.
TCS last month revamped its internal structure with specialized groups as part of a broader move to win business from startups as well as large global enterprises. Gopinathan said that overhaul was carried out in less than a month.
“We are extremely agile in the way we restructure,” he said. “We are more micro-focused on the customer sets that we have and the opportunities that we have.”
TCS is Asia’s top outsourcer and is the cornerstone of Tata GroupIndian conglomerate with dozens of companies in everything from salt to automobiles. The tech services company closed its fiscal year that ended in March with revenue of more than $25 billion.
Rising labor cost is a challenge. Last week, TCS reported a 7.4% increase in fourth-quarter profit to Rs 9,930 crore ($1.3 billion), lower than analysts’ estimates, as margin cuts and the expense of retaining talent. in.
Startups are starting to compete with giants like TCS for the programmers and developers needed to run their businesses. Some newcomers are wooing talent with BMW motorcycles or a three-day work week – something the big outsourcers have resisted.
TCS employs approximately 600,000 people and aims to hire more than 40,000 graduates in the fiscal year through March 2023. Gopinathan calls the current scramble for employees “temporary” and argues that, ultimately, no one will be able to pay more for talent than TCS because it enjoys the highest structural margin.
“If you look at this industry, we enjoy the advantage of capturing a high point on the profitability side; everyone else is benchmarked below us,” he said. “So, no, I see no threat to my position. is visible.”
Ahead of his promotion, Chief Financial Officer Gopinathan said given the apparent challenges in the global economy, he has questions about why TCS is determined to hire and expand.
“I’m having a lot of debate that everyone is saying the outlook is bad – how are you positive? What’s out there, we’re reacting to that.”
“This is not to say that we are living in a bubble,” he said. “We are betting on that development knowing that even if we turn out to be wrong, we will back down and reset.”