India has been a key revenue driver for software giant Tata Consultancy Services (TCS). CEO and managing director N. Chandrasekaran told Hindustan Times that the company sees major potential in cloud computing services — software and hardware facilities rented over the Internet. Excerpts:
You have significant presence in India. What is your strategy?
India has been extremely important for us... we have completed some critical projects for government and major Indian companies. In the coming quarters we are eyeing projects in the government, financial services, small and medium business enterprises... We have also identified cloud services as an important area.
Tell us more about your cloud services strategy.
We are already offering cloud services to 75 customers and scaling them up over the next 12 months. We have launched process clouds and global platforms in four different areas. The banking cloud has been very successful. I see cloud services with good potential over the two years and beyond.
How do you view other emerging markets?
We feel all emerging markets — Asia Pacific, India, Middle East, Africa and Latin America — are core markets for us. My endeavour would be to grow at a rate higher than the company's rate... and over five years 20 to 25 per cent revenues (will be) from these markets.
How does the Europe situation and cross currency fluctuations affect you?
Regular macro-environment in Europe is very dynamic and a matter of concern but if you look at our bottom line we are not seeing any impact.
And revenues from Europe?
During earlier quarters around 30 per cent of our revenues came from UK and about 10 per cent from continental Europe. But this has come down primarily due to currency and also because growth in Europe has lagged.
Going forward we would like to expand in Europe. Over a five-year period I would like Europe to contribute one-third of the company's revenues.