TCS digital business rocks, generates $2.3 bn revenue

TCS CEO N Chandrasekaran
IT services provider Tata Consultancy Services (TCS) on Monday said it generated $2.3 billion revenues (+52 percent) from digital business during fiscal 2016.

Digital business of Tata Consultancy Services forms 15.5 percent of total revenues in the fourth quarter of fiscal 2016.

In FY16 Digital revenues grew 52.2 percent due to faster adoption of digital solutions by enterprise clients. TCS has captured significant customer opportunities with 15.5 percent of total revenues coming from Digital in Q4 fiscal 2016 led by Analytics & AI, cloud and mobility and channels.

TCS competes with Infosys, Cognizant, Wipro, Accenture, among others to add digital revenue.

TCS CEO N Chandrasekaran said:  “Our investment in building high impact digital platforms is paying off, resulting in over $2.3 billion in digital revenues. We are building the right talent pool by training more than 120,000 TCSers in FY16 in over 400 new digital technologies to help our customers drive adoption of digital in their enterprise.”

Tata Consultancy Services will be making more investment in developing digital talent and launch new products in emerging areas leveraging the Internet of Things (IoT), automation and machine learning.

Tata Consultancy Services has invested more than $250 million to support organic growth in its Digital businesses and in new markets.

TCS revenue in Q4

TCS said its revenues in Q4 fiscal 2016 rose 17.5 percent to Rs 28,449 crore.

Growth in revenue from BFSI was 3.2 percent q-o-q, while manufacturing revenue rose 3.9 percent and Retail increased 2.1 percent. In fiscal 2016, growth in TCS revenue from BFS was 14.8 percent y-o-y), while Life Sciences revenue up 20.6 percent, Travel & Hospitality surged 17 percent and Manufacturing increased 15 percent.

Growth in Q4 was led by Europe (3.6 percent q-o-q) and North America (2.4 percent). In FY16, North America grew 10.8 percent, Europe grew 12.9 percent, UK 8.3 percent. TCS said its revenue from India crossed $1 billion milestone in annual revenues while overall revenues from new Growth Markets stood at $ 3.3 billion in FY16.

Key Wins in Digital in Q4

logistics provider to enable real time monitoring of port equipment using an IoT Platform incorporating the TCS Sensor Data Analytics framework
UK Utilities Company as a strategic consultant to create the roadmap, operating model and mobile technology architecture to transform its field operations
Indian bank to help enable its customers to transact using social media
International consortium as a design consultant to revamp user experience across a suite of web applications to provide superior customer experience
auto manufacturer as a strategic partner for developing its next generation telematics solution by combining mobility, cloud, security and API capabilities
Indian Insurance firm to reimagine its workplace experience by building a next generation enterprise social networking platform using the TCS Knome platform
African banking & insurance firm for its Digital channel transformation program
African airport operator as its preferred partner to digitally transform guest experience
North American conglomerate to design and develop an IoT enabled secure, scalable and mobile-first technology platform to enable the creation of new service lines
European bank to reimagine its customer experience by conceptualizing its next generation digital program using wearable technology
insurance firm for a consulting engagement to provide cloud readiness assessment using TCS proprietary methodology for its IT portfolio rationalization program

TCS job

The company employed 353,843 professionals globally from 129 nationalities including with 33.8 percent women professionals at the end of FY16. The attrition rate for IT services was 14.7 percent while overall it stood at 15.5 percent on an LTM basis.

TCS made gross addition of 90,182 employees in FY 2016, with a net addition of 34,187 employees. In Q4, there was a gross addition of 22,576 employees and net addition of 9,152. TCS completed its highest ever hiring of over 90,000 new employees globally during the year.

Arya MM