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.”
{{/usCountry}}“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.”
{{/usCountry}}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