After US & Europe, TCS bets on China
The China business of Tata Consultancy Services, India’s largest software services exporter, is less than $100 million (Rs 520 crore) and the size of its workforce is 2,000. For a $10-billion (Rs 52,000-crore) company with 2,38,000 professionals wordwide, this appears to be a small business.business Updated: Apr 24, 2012 20:55 IST
The China business of Tata Consultancy Services, India’s largest software services exporter, is less than $100 million (Rs 520 crore) and the size of its workforce is 2,000. For a $10-billion (Rs 52,000-crore) company with 2,38,000 professionals wordwide, this appears to be a small business.
However, the software giant is banking on China to boost its revenue figures in seven-eight years, said S Mahalingam, chief financial officer and executive director, TCS.
“The opportunity for software companies in China is so huge,” Mahalingam told HT. “On a long-term basis, it could be even beyond $10 billion. We have identified 2-3 verticals with great potential in China. Banking, financial service and insurance (BFSI) is the major one.”
“It first needs to be half a billion dollar business to have a name in the local market,” he said.
In markets such as China where knowing the local language is an added advantage, 90% of the company’s employees will be locals.
More than 50% of TCS’s revenue come from the US and 25% from Europe. The Indian business contributes about 9% to the company’s revenues.
“Most of the Indian companies have their own software divisions,” said Mahalingam. “So growth is limited in India. However, e-governance initiatives are good opportunities. About 50% of our revenue from India is from government projects.”
TCS has already given offer letters to 46,000 students to join from the second quarter of the current fiscal years and has announced a wage hike of 6-10%.
...Shares up 12% on Q4 results
Shares OF Tata Consultancy Services (TCS) ended up more than 12.8% at R1,195.3, following a better-than-expected quarterly earning figures released on Monday and pushing the Sensex up 111 points at17,207.3. The company reported a consolidated net profit of R2,894.9 crore for the quarter ended March 2012, against R2,622.9 in the year-ago period. PTI/New Delhi