26 C
Wednesday, February 28, 2024

The TCS success story :  How India’s most valued IT company grew globally

- Advertisement -

Tata Consultancy Services (TCS) is the most valued IT firm in the country. Read about how TCS grew internationally, acquired new verticals, and more in this success story.

Tata Consultancy Services (TCS) surpassed Accenture as the world’s most valuable IT business in October 2020, with a market valuation of US$144.73 billion, or Rs. 10.6 trillion. Furthermore, the company’s shares reached an all-time high of Rs. 2,898 in December 2020, but only a decade before, shares could be acquired for Rs. 375. It was also revealed in 2018 that TCS’s stock had increased by as much as 603 percent in the previous decade!

Here’s how the firm performed during the previous decade. On August 25, 2004, the business went public, making its trading debut on Dalal Street at a 27 percent premium to its issue price, and began delivering a compounded annual return of 27 percent over the next decade.

During this time, TCS’s market value increased from Rs. 47,232 crore to Rs. 4.94 lakh crore, making it the largest among all Indian listed businesses.

At the start of 2021, TCS had a diversified workforce, employing 453,540 employees from 147 nationalities in 46 countries. In December 2020, the firm extended its operations in Austin, Texas, by building a new facility and doubling its footprint. The firm also planned to invest more than $100 million in Austin over the following seven years, with the goal of adding an extra 10,000 local employees in the United States.

TCS also decided to concentrate its operations in Eastern Europe, the Middle East, Africa, and Latin America into a strategic business unit, intensifying its attempts to extend its footprint in emerging regions and diversify its revenue source.

During 2013-14, continental Europe was the company’s fastest-growing market, accounting for 52% of total growth, with Latin America coming in second at 35%.

Today, however, the Americas account for the majority of the company’s revenue, which was expected to be over US$ 10.8 billion in 2020. Because of the company’s global presence, it may hedge its earnings against currency swings, and its income is earned in all currencies.

Accepting Technology

According to a NelsonHall poll, TCS’s primary strengths are its investments in IP enabling automation, artificial intelligence (AI), and machine learning (ML), which include the Machine First Delivery Model (MFDM), autonomous infrastructure, ignio, and cognitive service desk, among others.

In 2015, the business released its flagship programme ignio, relying on AI to boost productivity and eliminate the need for human interaction.

During the COVID-19 epidemic, which paralysed the global economy and significantly impacted the productivity and profit margins of businesses worldwide, Digitate, a TCS software venture, announced the debut of ignio AI.Digital Workspace. This was done to assist staff and service desk teams in increasing their productivity.

Since 2018, ignio has reported an average revenue per customer of US$ 550,000 per year by leveraging AI and machine learning to meet major business demands.

It was also stated earlier this year that ignio’s revenue was close to US$ 100 million in FY20, after exceeding US$ 60 million in 2018-19 and US$ 31 million in FY18.

Winning Complex Transactions in New Verticals

TCS has also shown competent at winning complicated projects across new sectors, including platform-led deals, by leveraging its presence and scale. In May 2013, the business was awarded a 6-year contract for well over Rs. 1,100 crore to provide services to the Indian Postal Department.

TCS teamed with Transamerica in 2018 to handle Transamerica’s life insurance, annuity, supplemental health insurance, and workplace optional benefits packages in a transaction valued more than US$ 2 billion in revenue. In addition, the business assumed responsibility for the administration of over ten million policies.

TCS also received a 10-year contract of US$ 690 million from M&G Prudential in the same year. It was stated that TCS will leverage its insurance platform, BaNCS, and Diligentia, to eliminate manual involvement in the British insurer’s back-end claims procedures. The years 2017 and 2018 were exceptionally profitable for the corporation as it expanded its operations across sectors.

TCS also received contracts from a Lloyds Banking Group affiliate, Rolls Royce Group, Marks & Spencer, and television ratings measuring business Nielsen. As a consequence, the business reported a 21.9 percent growth in net profit to Rs. 31,472 crore for fiscal year 2018-19, while sales increased 19 percent to Rs. 1,46,463 crore. The firm recorded a 17.7 percent year-on-year increase in its consolidated net profit for the January-March period in its fourth quarter, which ended on March 31, 2019.

For latest Bollywood Update Follow us on Instagram & Watch on Youtube


Related Articles

Latest Articles