Menu
Tata revenue, profit up on strong outsourcing demand

Tata revenue, profit up on strong outsourcing demand

The Indian outsourcer expects to do better in the current fiscal year

India's largest outsourcer, Tata Consultancy Services, is boosting hiring and offering wage hikes after reporting strong revenue and profit growth in its recently concluded fiscal year.

The current fiscal year will be better than the previous one as the company expects to benefit from higher client spending in key markets such as financial services and retail, and to meet regulatory requirements, TCS CEO and Managing Director N Chandrasekaran told reporters Wednesday.

The company saw growth across all its key markets, including Europe, Asia Pacific and the U.S., although the Indian market was "soft" as deals could not be closed ahead of federal elections, which began this month, Chandrasekaran said.

TCS' revenue in the fiscal year, ended March 31, was US$13.4 billion up by over 16 percent from the previous year, while net profit grew almost 23 percent to $3.1 billion in accordance with IFRS (International Financial Reporting Standards).

In the fourth quarter, the company had revenue of $3.5 billion, a year-over-year increase of 15 percent. Net profit was $861 million, up by 33 percent from the same quarter last year.

However, India's second largest outsourcer, Infosys, didn't fare as well. It said Tuesday it had a disappointing quarter with a slowdown in some market segments.

Market intelligence firm Information Services Group said earlier this month that the global outsourcing industry is "off to a fast start" in 2014. The ISG Outsourcing Index, which measures commercial outsourcing contracts with an annual contract value of $5 million or more, showed that 10 large contracts worth more than $100 million in ACV were signed in the first quarter. The large contracts, coupled with double-digit growth in overall contracting levels, led to a 14 percent increase in ACV over the first quarter last year, ISG said.

Besides growing its business, TCS has also kept its staff attrition low, which is key in the Indian IT services industry. Staff attrition was 11.3 percent and the company added 9,751 employees during the quarter, taking the total to 300,464.

The company plans to hire 55,000 employees this year of which 25,000 will be recruited at universities and colleges, TCS' head of global human resources Ajoy Mukherjee said. The company will be offering raises to its staff ranging from 2 to 4 percent in developed markets to around 10 percent in India.

North America is the largest market for TCS, accounting for 53 percent of revenue in the year, with the U.K. contributing 17.5 percent.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesservicesoffshoringoutsourcingfinancial resultsTata Consultancy Services

Featured

Slideshows

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

​Ingram Micro’s Hooked on Lenovo incentive programme recently rewarded 28 of New Zealand's top performing resellers with a full-on fishing trip at Great Barrier Island for the third year​ in a row.

Tight lines as Hooked on Lenovo catches up at Great Barrier Island
Inside the AWS Summit in Sydney

Inside the AWS Summit in Sydney

As the dust settles on the 2017 AWS Summit in Sydney, ARN looks back an action packed two-day event, covering global keynote presentations, 80 breakout sessions on the latest technology solutions, and channel focused tracks involving local cloud stories and insights.

Inside the AWS Summit in Sydney
Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Ingram Micro hosted its third annual Cure Kids Charity Golf Tournament at the North Shore Golf Club in Auckland. In total, 131 resellers, vendors and Ingram Micro suppliers enjoyed a round of golf consisting of challenges on each of the 18 sponsored holes, with Team Philips taking out the top honours.

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day
Show Comments