Posts Tagged ‘Indian’

Indian IT companies battle it out for Rs 11k-cr Australian pie

September 15th, 2014

Indian IT companies will be fiercely competing with MNCs for five big IT contracts in Australia valued at over A$2 billion (Rs 11,000 crore).infosys

Infosys, Wipro, TCS and HCL Technologies are participating alongside IBM, HP and Capgemini in request for information (RFI) and request for proposal (RFP) for incremental IT outsourcing work coming from Sydney Water, Rio Tinto, Jetstar, Aurizon and Transport for NSW, said an Australian IT consultancy firm that did not want to be named.

Incumbent IT vendors IBM, Infosys and Accenture have sought RFIs and RFPs to participate in mining major Rio Tinto’s A$750 million IT-BPO contract. The work is in HR, analytics, engineering and logistics. Rio Tinto had previously outsourced procurement to Infosys and finance & accounting (F&A) to IBM. Accenture was engaged with the mining major for ERP and application support, while CSC maintained its IT infrastructure. These previously outsourced 10-year contracts were worth A$3 billion.

Jetstar, a wholly-owned subsidiary of the Qantas Group, is considering outsourcing work related to ticketing, customer loyalty programme, analytics, HR and F&A. Wipro TCS and Genpact are participating in the RFIs/RFPs. “Jetstar is currently using Lincom for virtual desktop support. It has been subcontracted through Tech Mahindra. Jetstar’s customer support is partially outsourced to Teleperformance and Convergys,” the consultancy said.

Australian companies are reviewing monolithic contracts and are breaking them down into smaller ones to drive operational and cost efficiencies.

The Australian IT services market has gone through several cycles of IT outsourcing with strong demand particularly from public sector utilities. Last year, New South Wales (NSW) Transport had floated an expression of interest (EoI) for next generation infrastructure services (NGIS) that includes server and webhosting, data centre infrastructure and end user computing. Infosys, Wipro, HCL and TCS, as also HP and IBM, participated in the EoI.

“Analytics and BPO will lead the charge (in contracts). Public sector contracts have opened up in a big way. There will be at least 7-8 RFPs in both federal and state governments in the next six months,” said Mohit Sharma, director of Australia-based advisory firm Mindfields.

Siddharth Pai, president in outsourcing advisory firm ISG Asia Pacific, says Australia is one of the early adopters of offshoring, with Telstra using offshoring a decade back. Infosys counts the telecommunication and media company as one of its top ten customers.

Australia’s largest rail freight operator Aurizon is floating an incremental A$500 million contract for IT and BPO services. The freight operator is looking to outsource F&A, procurement and analytics, for which Capgemini, Wipro, Genpact and WNS have sought RFIs and RFPs.


Why TCS is betting again on Chandrasekaran

September 12th, 2014

When N. Chandrasekaran was named chief executive officer (CEO) and managing director (MD) of Tata Consultancy Services Ltd (TCS) five years ago, analysts and insiders started talking of the firm’s acronym being short for “Take Chandra Seriously”.
Chandrasekaran proved them so right that no one was surprised when India’s largest software services exporter last week appointed the marathon runner CEO and MD for a second five-year term effective 6 October. Given his track record, shareholder approval to the appointment seems to be a mere formality.

In an industry where at least three big information technology (IT) firms—Infosys Ltd, Wipro Ltd, and Nasdaq-listed Cognizant Technology Solutions Corp.—have faced leadership challenges that have either affected, or threaten to affect, their fortunes, TCS’s numbers speak volumes for Chandrasekaran’s performance since he succeeded his mentor S. Ramadorai in 2009.

At $13.4 billion as of 31 March, TCS’s revenue made up a little more than 11% of the $118 billion IT industry. Its 305,431-strong workforce is a little over 10% of the number directly employed by the industry.

There’s more. Women composed 32.7% of its workforce as of 31 March, making it the largest employer of women among private sector companies. When the quarter ends on 30 September, the company will have easily surpassed the 100,000 women employee mark.

On Thursday, TCS’s market capitalization, at a little over $85.55 billion, almost equalled the combined $86.37 billion market cap of the next four biggest Indian IT firms—Infosys, Wipro, HCL Technologies Ltd and Tech Mahindra Ltd.

Cognizant, whose market cap is about $28 billion and is listed overseas, and US-based Accenture Plc, with a market cap of about $51.3 billion, aren’t in the list although most of their employees work out of India.

Chandrasekaran, who has been with TCS for almost 28 years, never applied for any other job. He started at TCS as a software programmer in 1987, having completed his master’s in computer applications from the Regional Engineering College, Tiruchirappalli (now National Institute of Technology, Trichy), in 1986. In the final year of his master’s programme, he took up a project with TCS, and never looked back, rising to the helm of the firm where he learnt the ropes of the IT business.

The transition was well-planned, say analysts. Chandrasekaran, they insist, was identified for the CEO’s role around 2004-05, but that became apparent only somewhere around 2007. When he eventually rose to the top at the age of 46, he became one of the youngest CEOs in the Tata group.

His rise in TCS was rapid. In 1999, he started the company’s e-business unit and expanded it to an over $500 million segment in four-and-a-half years. In September 2007, he was co-opted on the TCS board and named chief operating officer (COO).

As COO, he drove the company’s acquisition strategy—the purchase of Citigroup Global Services for $505 million in October 2008 is credited to him.

Under Chandrasekaran, TCS has consistently posted results that have beaten market expectations. The company does not provide quarterly or annual revenue forecasts, but it exceeded software industry lobby Nasscom’s 12-14% revenue projection for the year ended 31 March and is expected to easily beat the 13-15% revenue forecast for the current year.

Analysts expect Chandrasekaran to retain the growth momentum in his second innings. And TCS may soon become India’s first $100 billion market cap company as analysts from securities houses JPMorgan Chase and Co. and CLSA wrote in June when TCS’s market cap was about $61 billion. To be sure, that pales in comparison with the $190 billion market value of International Business Machines Corp. (IBM).

“While Chandra was expected to be re-elected for a second term, in his second innings we would expect him to foray deeper into new service lines like digital technologies, including social media, mobility, analytics and cloud (SMAC), and continue to outperform the industry, maintaining the 16-17% growth rate for the year that Chandra had earlier indicated,” said Dipen Shah, head of private client group research at Kotak Securities Ltd.

TCS is expected to hit $100 billion in market value soon, said an analyst from an international securities house who did not want to be named because he is not authorized to talk to the media.

“We are also expecting a possible merger or acquisition of a small digital enterprise, given that peers Infosys and Wipro have made many such digital acquisitions recently, although TCS hasn’t. Besides, TCS generally makes at least one small merger or acquisition every year, and the company is expecting digital to contribute significantly to revenue going forward,” said the analyst.

Rivals wane, challenges loom

Chandrasekaran’s first term at the helm coincided with a steady decline in the fortunes of Infosys and Wipro, its two closest rivals.

Once the bellwether of the Indian IT industry, Infosys got embroiled in leadership issues that took a toll on its profits. The firm will take time to recover under its new CEO Vishal Sikka, who took charge on 1 August. Wipro, under the leadership of T.K. Kurien, is also trying to rebuild.

Even Cognizant is showing chinks in its armour. On 6 August, Jennifer Hamel, an analyst at research firm TBR, noted that for the first time since the June quarter of 2011, Cognizant had not outpaced TCS in year-on-year revenue growth in the three months ended 30 June. In response to an unexpected dip in client spending, Cognizant pared its annual revenue growth forecast from 16.5% to 14% for 2014.

On 18 August, Mahesh Venkateswaran, the head of Cognizant’s $500 million SMAC business, stepped down. The 18-year veteran used to report to CEO Francisco D’Souza.

To be sure, TCS—and its rivals—does face its set of challenges.

Although automation has started taking over the traditional labour arbitrage lever for IT services delivery, TCS maintains a robust pace of hiring people (10% year-on-year in the quarter ended 30 June), mainly freshers, since it can keep employee costs low, said Bozhidar Hristov, an analyst with research firm TBR.

“However, hiring freshers in bulk could put pressure on TCS’s ability to deploy resources in timely manner, impacting its credibility and ability to maintain a competitive edge,” added Hrsitov.

And despite all the digital talk, traditional services continue to account for a major portion of the revenue of Indian IT firms, while SMAC technologies still account for less than 10% of the total revenue of IT companies.

Application, development and maintenance work alone accounts for 35-40% of the revenue of most IT firms. But with increased automation and platform-based services that can be replicated across segments and non-linear initiatives, analysts agree that SMAC will allow the IT industry to offer more value to clients.

Non-linear initiatives, unlike in the traditional model, are not dependent on the number of people engaged in a project for their revenues.

Much will depend on the ability of companies such as TCS to offer solutions that integrate new business models such as analytics and cloud-based services—which are part of SMAC—with traditional ones.

Scale is another issue TCS will have to deal with.

TCS has handled challenges related to size and scale very well, but in the future it will have to balance the need for linear, or headcount-related, growth with that of reducing costs through automation and by templating solutions that can be replicated across industries without the need to add additional labour. As TCS continues to grow, it will have to hire more laterals, or professionals, too, along with freshers to feed an increase in onsite project demand and the need for SMAC professionals. This will add to wage costs since the salaries of professionals, on average, start from Rs.7-10 lakh while freshers, on average, can be recruited for Rs.3-5 lakh.

Moreover, as TCS continues to expand in geographies other than the US, which include Europe, Continental Europe, Latin America, Japan, Africa and China to name a few, it will be forced to hire more local or onsite employees due to increasing pressure from those governments to hire locals. This will add to dollar costs and reduce its labour arbitrage, which it will have to compensate by more value-added work like digital, automation and templatization of solutions that can be replicated across industries—similar to what companies such as Accenture and IBM do.

Last, but not the least, if a proposed US immigration Bill gets passed in its current form, it will add to the wage costs of TCS and reduce its margins, analysts warn.

According to a 26 May note by research firm Offshore Insights, TCS employs about 27,000 staff in the US, of which 9,000 are US citizens and green-card holders. The rest are employed on H-1Bs and L-1 visas.

“Should the Bill (that limits the proportion of H-1B/L-1 Visa workers to 50% to that of US employees) gets passed in 2017, TCS’s US staff size would be estimated 35,000-36,000. This means it will need 18,000 US citizens which includes 9,000-10,000 new recruits. This doesn’t stop here; TCS will have to stop issuing any H-1Bs in coming two years. Clearly a huge hit, as constraints like talent acquisition, billing rates, margin pressures and similar others are bound to affect its operations onsite,” the note said.

Building for the future

The TCS management is not resting on past laurels.

TCS spent Rs.913.76 crore on research and development (R&D) and innovation in fiscal 2014 compared with Rs.776.58 crore in the year earlier, according to the company’s 2013-14 annual report. This is not much when compared with the billions of dollars that a company such as IBM spends on R&D, but sizeable given that TCS started out as an outsourcing firm that relied on low-cost labour in its home market to drive profits.

Till date, TCS has filed for 1,746 patents and 114 patents have been granted. The company opened its first R&D lab in 1981 when the technology industry in India was just taking shape. Across industries and services, TCS has established a global network of Innovation Labs. Its Co-Innovation Network has partnerships with academic institutions, start-ups and venture funds.

TCS has also invested significantly in digital technologies. It has invested in building a network of cloud data centres across the globe. The company has set up a digital enterprise unit in Silicon Valley to club its SMAC services, headed by Satya Ramaswamy, vice-president and global head of TCS Digital Enterprise, who joined TCS in 2010 after the company acquired Brightfon Inc., a mobile solutions firm he founded in July 2008.

Investments in digital initiatives are increasingly dictating “TCS’s go-to-market strategy as the company realizes that the pace of adoption of developing digitally enabled, vertical-specific portfolio is the key to remain competitive in the fast-evolving IT services market”, Hristov of TBR wrote in a 17 July report.

He added that to accelerate its portfolio and foothold expansion and offset potential margin pressure, “we expect TCS to pursue an acquisition of a Europe-centred technical consultancy with vertical-specific capabilities focus, as developing IP (intellectual property) through R&D can be more expensive and riskier than making an acquisition”.

Chandrasekaran earned compensation of Rs.18.68 crore in the year ended March, compared with Rs.11.7 crore the previous year. The pay excluded his earnings from the 88,528 shares he held in the firm as of 31 March.

The nearly 60% hike in Chandrasekaran’s annual salary in fiscal 2014 made him the highest-paid CEO in India’s IT industry. But in July, Infosys said it will pay Sikka $5.08 million in annual salary and stock options worth $2 million.

Judging from TCS’s performance in the past five years, Chandrasekaran, it appears, has earned his pay and his second term in office. At least for now.


Wipro, Infosys bet on Internet of Things to revive telecom business

September 10th, 2014

Indian IT service providers such as Infosys and WiproBSE -0.76 % expect Internet of Things and adoption of cloud computing to open up new revenue streams in their telecom business even as telcos cut down spending on their traditional outsourcing contracts.
“There is huge opportunity due to the potential of Internet of Things,” said Ayan Mukerji, chief executive of Wipro’s media and telecom strategic business unit and product engineering services. Internet of Things, or IOT, refers to interconnection between different objects and devices through the internet.

“In many ways, we are going back to centralised computing, i.e., intelligent cloud platforms, digital highways and connected devices. Products and services will increasingly be available across automotive, banking, and other industries,” Mukerji said. Wipro’s engagement with clients such as British telecom giant BT around domain-specific operational projects is helping it tide over the current challenging times, he said.

“Revenue share from non-core areas is increasing, i.e., in cloud services, networking and data center services and the IOT opportunity.” This comes at a time when traditional revenues decline. Some of the world’s largest telecom companies, including AT&T and BT, which outsource significant IT work to Indian firms, are seeing voice revenues declining at a faster clip than an increase in data revenues.

At the same time, the likes of Skype and Google that provide voice calls, do almost all their IT backend work themselves. Yet the new opportunities have started having an impact on IT firms’ revenues. Although telecom and media contribution to Wipro’s revenues has been declining over the last few years — from 18 per cent in 2011 to 13.8 per cent by the end of March 2014 — the unit has posted a growth of more than 4 per cent in both the fourth quarter of last fiscal and the first quarter of this fiscal year.
One of the factors, according to Mukerji, that helped the division do better than overall company’s growth has been the demand for telecom network design as “telecom IT and the network are becoming more integrated”.

Tom Reuner, an analyst at a London-based IT research firm Ovum, said: “Wipro is a good example of developing longterm client relationships around domain-specific operational projects and scaling them out over time. Examples for this are their contracts with BT and Talk-Talk in the UK.”

Wipro’s rival Infosys, too, expects its existing telecom clients such as AT&T to open up new revenue streams for the company. “AT&T has launched AT&T Digital Life services, where they are offering to take care of home security, automation and climate control at per month subscription,” said a senior executive of the company, adding that the US telecom giant is extending this to Europe and other international markets.

“So Infosys is going to partner with AT&T to provide billing and web solutions, which will be offered to AT&T on pay per use model and this will allow us a vehicle and give entry to Infosys to entry to the European markets,” the person said. Infosys’ share of revenues from telecom unit declined from 9.7 per cent in FY 2013 to 8.3 per cent in FY2014 as most of its client face pressure from “over-the-top” players such as Skype and Google. IT companies are now looking to win more transformational deals.

Wipro’s Mukerji said the industry will see more transformational deals in the range of “$100-250 million” than mega deals, including northwards of $500 million. “My objective is very clear that the telecom and media business unit should not be margin dilutive within the company,” he said.


TCS attains Rs 5 lakh crore market-capitalisation

September 4th, 2014

Tata Consultancy Services (TCS), the country’s largest software services exporter, on Wednesday, attained a market valuation of over Rs 5 lakh crore after over a month. outsourcing35

At the end of today’s trade, the market-capitalisation (m-cap) of TCSBSE 0.75 % soared to Rs 5,09,523.91 crore, the highest for the company since its listing in 2004. Shares of the outsourcing giant ended the day at Rs 2,601.30, up 2.45% on the BSE. In intra-day trade, it rose by 2.9% to Rs 2,612.95.

In dollar terms, TCS’ market valuation rose to $84 billion.TCS, the first Indian company to achieve the feat, had earlier crossed Rs 5 lakh crore market-cap in July this year.

The IT bellwether is also currently the country’s most valued company in terms of market valuation. TCS is followed by state-run ONGCBSE -1.06 % whose m-cap stood at Rs 3,74,730.47 crore, Reliance IndustriesBSE -0.50 % (Rs 3,33,400.02 crore), ITC (Rs 2,78,020.71 crore) and Coal India (Rs2,37,495.30 crore).

The market valuation of other big IT players such as Infosys stood at Rs 2,14,454.24 crore, Wipro (Rs 1,42,478.12 crore), HCL Technologies (Rs 1,16,142.59 crore) and Tech Mahindra (Rs 57,293.10 crore).


Python is still greek to India’s top IT firms

September 3rd, 2014

Recently, one of India’s top software companies was faced with quandary. It had won a $200 million (Rs 1,200 crore) contract to develop an app store for a large US bank, but did not have adequate numbers of programmers who could write outsourcing32code in Python, the language most suited for the job. Eventually, it paid thrice the billing rate to a group of freelance Python programmers in the US. And learned a valuable lesson about the importance of a language named after the British television comedy series Monty Python.

For a nation regarded as a software programming powerhouse, the episode has salutary lessons. While skills in traditional computer languages meant for stitching software applications and maintaining large mainframe computers are a strength, ignoring Python could prove to be a costly mistake.

“Because companies like Infosys and TCS prefer proprietary languages like Java or dot NET most students think of these as an option in college. That is the reason you don’t get good quality talent in the industry to work with us in Python,” said Jofin Joseph, cofounder and chief operating officer of Profoundis, a Kochi-based technology startup which has been struggling for about a year to hire young Python programmers.

Python is by no means a new language — it was developed in the late 1980s by a Dutchman Guido van Rossum. It is open source, easy to write and can be used for a variety of applications such as development, testing and scripting. Because of its simplicity and elegance, Python has been embraced by top technology companies such as Google, Dropbox, Mozilla, Quora, Intel, Cisco, Hewlett-Packard, Seagate, Qualcomm and IBM.

In spite of its popularity among developers, Python is yet to find a place in the teaching curriculum of schools or universities, most of which continue to teach the conventional languages such as C, C++ and Java, unlike countries like the United States and United Kingdom where universities and schools now impart Python training.

According to the Institute of Electrical and Electronic Engineers, which tracks programming languages by popularity, Python is the second most popular programming language this year for development on the web after Java. According to HackerRank, which provides a competitive platform for coders, out of a total of 38 programming languages worldwide, 13.95% of all code submitted was in Python, while 19.92% submissions were in Java, and 15.72% in C.

The maximum number of solutions were submitted in C++ with 37.7%. For Python to have such a large share in the submissions compared to legacy languages suggests that coders have started adopting it in a big way, said Anirvan Mandal, product developer at HackerRank.

Indian IT outsourcers like Infosys, TCS, Wipro began by building software when Python was not as popular, and most code was built in languages such as C, C++, Java or .NET. “To rewrite something from C to Python would take a long time, so these companies find it easier to maintain existing code in those languages,” said Mandal. On the other hand, Ajit Kumar, a president at HCL Technologies, said that for IT outsourcing companies, proficiency in Python is now considered as an additional skill for developers.

In May, Google India announced the second edition of its “Code to Learn” contest, where students from classes 7 to 10 have the option to code in Python. “Our intention of including Python in the Code to Learn contest was to introduce a new language to interested students. A lot of professional software developers use Python these days and a number of universities are teaching it as the first programming language but it has less adoption in academia in India,” said Ashwani Sharma, India head for university relations at Google.

However, hiring agencies said that Python is a hot skill that is commanding a premium over traditional languages. For Python programmers with about six years’ experience, the salary could be up to 30% higher than for those with skills in traditional languages. “Of the most commonly required programming languages, Python was the only one to see a year-over-year increase,” said Alka Dhingra of recruiting firm TeamLease.


First IT jobs went offshore, now they’re being automated

September 3rd, 2014

The US and European IT roles that were pushed to offshore service providers will increasingly be automated, as the outsourcing giants look to preserve their margins. outsourcing30
By 2016 almost 1.1 million IT jobs are expected to have been sent offshore by major US and European companies.

The drive to send jobs abroad has, in part, been fuelled by low labour costs relative to western countries, with recent entry-level salaries for engineers in India falling between $4,200 and $5,900.

However, after years of double digit growth in Indian IT workers’ wages and with western customers demanding more for less, offshore service provider margins are being squeezed.

To protect their profits, major providers are beginning to automate an increasing number of roles traditionally carried out by systems adminstrators.

Milind Govekar, VP with analyst firm Gartner specialising in IT operations, said the push towards automation is partly being driven by the complexity of IT systems these service providers run on behalf of their clients.

“I often call IT an archaeological science, because nothing dies. You have generations of applications and infrastructure buried in an organisation. There’s a bank in the UK that has applications running from 1957. You can imagine the complexity that particular environment has,” he said.

“It’s a combination of old systems, new systems and everything co-existing. At the same time demand is going up as well, as almost all organisations have launched digital business initiatives.”

Customer expectations of service providers are also rising. Govekar referenced a large European bank outsourced to India’s largest IT services company TCS that expects demand on its systems to grow by 25 – 30 percent each year but wanted its costs to increase by no more than five percent.

“A lot of these service providers are saying ‘It’s just not sustainable to hire people and get them to maintain these systems’.”

For example, the CEO of TCS recently said in an interview the firm is working on up to 15 platforms to automate different aspects of its work. For its part Wipro is building its FixOmatic framework, which it says will enable automation of up to 40 percent – 45 percent of all level 1 and level 2 support tasks, reduce downtime and lower operational cost.

What sort of roles are being automated?

Automation software maker IPSoft has deals with some of the largest IT companies operating in India – such as Wipro, Cognizant, Infosys and Accenture. The firm is one of a growing number of businesses providing automation technologies for running and maintaining an IT estate.

A look what IPSoft does demonstrates the types of tasks that are being automated. The firm’s main product is IPcenter, a software platform that is designed to monitor and automate the running of IT infrastructure, and respond appropriately when a problem arises.

“If you’re driving a car a light will come on to tell you to go to the garage. What IPSoft is doing with their technology is basically trying to solve any issues before it gets to the stage where the warning light needs to come on,” said Martijn Gribnau, chief change officer at IPSoft.

IPcenter relies upon “virtual engineers”, autonomic software that can handle incidents across the corporate infrastructure – from configuring a misbehaving firewall to reducing the load on a server running virtualised machines. Virtual engineers control their own operations, monitoring the network for incidents and are able to adapt and change tasks if a higher priority incident occurs.

“It’s basically a third generation expert system. It’s not cognitive yet, but it’s smart automation of virtual engineers. What we basically do is look at what an engineer is doing and automate it,” said Gribnau.

The product is designed to automate what Gribnau referred to as level one and two support engineers, as well as part of level three engineers’ responsibilities, as defined under the Information Technology Infrastructure Library service management practices.

IPSoft says that IPcenter autonomically resolves an average of 56 percent of incidents without human intervention and up to 90 percent of level one support incidents.

What effect is it having on IT hiring?

Fierce competition for the hundreds of thousands of newly qualified engineers India’s universities produce each year has pushed up salaries and encouraged service providers to poach staff from competitors.

Gartner’s Govekar said as demand grows for outsourcing and external services, including cloud, providers are looking at automation as a way of “not hiring more people”.

“They are also using automation as a way of buffering themselves against this huge turnover of people, where people are jumping from one organisation to the other. They look at automation as a way of filling those gaps, of making sure that certain repeatable tasks that systems administrators undertake are very much automated.”

The desire to control labour costs is already evident at the major service providers. After years of paying engineers double-digit salary increases, Infosys and its competitors are offering no more than 10 percent this year, in spite of projections by the Indian IT association Nasscom that the industry will grow by 15 percent, an improvement on 2013.

When contacted, Wipro had no comment to offer and Infosys declined to share its views.


TCS, Cloudera tie up to provide analytics services

August 26th, 2014

Tata Consultancy Services Ltd (TCS), India’s leading software services exporter, has tied-up with US-based Cloudera, an enterprise analytics data management provider, to offer Big Data and analytics services globally.

As part of the deal, TCS’s global team of Big Data experts will be certified through the Cloudera Certified Professional (CCP) programme, and its products will be validated through the Cloudera Certified Technology Programme (CCTP), TCS said on Monday.

While Satya Ramaswamy, global head for TCS Digital Enterprise said Big Data “is playing a central role in helping enterprises re-imagine their businesses”, Tom Reilly, chief executive officer of Cloudera, said the TCS’s investment in Cloudera has made it “the world’s largest group of Cloudera certified professionals”.

TCS is banking on revenue from emerging technologies such as social, mobility, analytics and cloud (SMAC) to stay ahead of the pack. In June 2013, it set up a separate digital enterprise unit in Silicon Valley to club its SMAC computing technology services under a single roof. outsourcing12

Last month, TCS said in a global trend report that digital spending by enterprises globally is expected to be a $113 million in 2014, as these organizations see digital initiatives, such as Big Data, analytics, cloud computing, mobile and pervasive computing, social media, robotics and artificial intelligence, as being crucial to their business success in this decade.

According to a February report by research firm Offshore Insights, Global 2000 firms will spend 15-16% of their information technology (IT) services and outsourcing budgets on SMAC and India will export $15 billion worth of SMAC software and services in fiscal 2017, despite SMAC currently accounting for less than 10% of the revenue of IT services firms.

According to global research firm International Data Corp. (IDC), Indian IT vendors will generate at least $225 billion in SMAC-related revenue in 2020. TCS made the announcement after market hours. On Monday, shares of TCS closed up 2.42% at Rs.2,521.15 on the BSE, while the benchmark Sensex index rose 0.07% to close at 26,437.02 points.


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