TCS on a strong growth trajectory: Chairman N Chandrasekaran to investors
India’s largest IT services player Tata Consultancy Services (TCS) in its annual report for fiscal 2020-2021 said that in a highly fragmented global IT services market, the company has grown at twice the rate of market growth over the past decade. With even the largest provider having a mid-single digit market share. TCS is among the largest IT services providers globally, with a market share of 1.6 per cent, and has significantly outperformed the market, said the company in its Annual Report.
N Chandrasekaran, Chairman TCS in the letter to shareholders said: “Your company sees immense opportunities for growth, riding the new technology cycle that has kicked off, powered by the belief that its differentiated capabilities and collaborative, solution-centric approach makes it the preferred transformation partner of its customers.”
He was also of the opinion that the year gone by saw an important inflection point that has huge ramifications on enterprise consumption of technology in the coming years, and on demand for TCS’ services.
TCS which reported one of its highest ever TCV for Q4FY21 at $9.2 billion, saw its full year order booking at $31.6 billion representing a growth of 17 per cent year-on-year. With strong order book, TCS is entering FY22 on a stronger growth trajectory.
Rajesh Gopinathan, CEO and MD TCS said that the company is entering FY 2022 with strong growth momentum and with much better visibility for future growth than it did last year, powered by a strong order book built up throughout the year and a robust deal pipeline
“We see this technology shift as the start of a multi-year technology upgradation cycle in which the abundance of native capabilities will constantly expand the art of the possible, opening up newer opportunities for technology-driven differentiation,” said Gopinathan.
In his note to shareholders, Gopinathan said that the ever-increasing reliance of enterprises on technology to drive differentiation, and to power their growth and transformation, TCS’ customers’ cloud transformation journeys will play out over three horizons, spread over the next three to five years and beyond.
The events of FY21 have kickstarted the journey across the first of those horizons for many enterprises. Migration to the cloud, by itself, is a material transformation programme that will play out over the next two to three years, depending on the complexity of the IT landscape, said Gopinathan in the letter to shareholders in the annual report.
“The outcome of this first phase of transformation will be a resilient, future-ready digital technology stack that supports leaner, more agile operations and serves as a scalable foundation for growth and the subsequent horizons of transformation. In the second horizon, we expect to start helping our customers leverage the rich native capabilities of these stacks around analytics, AI and ML to build new systems of customer engagement, new systems of differentiation and experiment with new business models. As more and more enterprises get on to this journey, the cloud will become the seamless technology fabric,” he said.
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