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TCS revenue crosses Rs. 5,000 cr.

By Our Staff Correspondent

MUMBAI JUNE 20. In a landmark achievement for the Indian IT industry, Tata Consultancy Services (TCS) has become the country's first billion-dollar software organisation by achieving revenues of Rs. 5,012 crores ($1.04 billion) for the year 2002-03 as compared to the revenues of Rs. 4,187 crores in the previous year.

The company registered a growth of over 20 per cent for the year, which is higher than the industry growth of 18 per cent. Further, TCS added over 4,763 employees during the year, the highest in the industry, as compared to 3,101 recruitments in the previous year.

At present, TCS has 24,120 professionals working at the largest network worldwide in over 100 branches in 32 countries and five continents. The company also has the distinction of being the country's largest software exporter consecutively for the last 30 years. IT software and services exports were Rs. 4,545.26 crores (Rs. 3,865.59 crores) while the domestic business accounted for Rs. 369.07 crores (Rs. 247.89 crores). Other income amounted to Rs. 98.05 crores (Rs. 57.90 crores).

While addressing the media here, S. Ramadorai, Chief Executive Officer, TCS, said, "Last year, we announced that TCS will become a billion dollar organisation and today we are glad to announce the development.

"This principle of sticking to our commitment has been fundamental to the organisation's success for over three decades. This is a moment of pride for each one of us at TCS. This milestone is a significant step towards our vision of 2010 of being among the top ten IT consulting companies globally".

Mr. Ramadorai said that at present, TCS commands 10 per cent of the Indian IT industry and the TCS-CMC combine has a 15 per cent share of the domestic IT market. Regarding revenue growth, Mr. Ramadorai said, "The profitability of the IT industry has been under margin and price pressure and will remain under pressure. This is because services are driven by cost reduction and not by revenue growth. The National Association of Software and Service Companies (Nasscom) has projected a growth of 17 per cent for the current year and our performance will better the industry average. We are differentiated from other players in that we have always brought technology in and built people around it. We strongly believe in fundamentals. The challenge for the Indian IT industry is how to project your differentiated capabilities in the global scenario. You have to come out with a value differentiator". Regarding business process outsourcing (BPO), Mr. Ramadorai said TCS had a history of back-office BPO since the 1960s. "We have a number of BPO projects going on. We acquired AFS, we have a joint venture with HDFC and also in the engineering space. We are in the consolidation mode to be a strong player in the BPO space".

Regarding the roadmap for CMC, Mr. Ramadorai said, "We have 3,200 people in CMC and have a Rs. 650 crore revenue. We have strong capabilities in infrastructure, data centres and industry verticals like transport, government and insurance. We are also predominantly a domestic player in education. In Phase I, we were improving profitability and that has shown results. We are cross-training people in marketing and sales with TCS".

On the future, Mr. Ramadorai said, on the front-end, CRM mobile technology and its uses were at the forefront. "At the back-end there is consolidation in databases, data mining, and data warehousing and we are well positioned for those. TCS transforms itself every two to two-and-a-half years because of the technology changes that happen and their impact. Therefore, we proactively invest in technology and build people for the future".

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