ALSO READFive key things to watch out from TCS Q4 results No plans of downsizing, will hire more: TCS CEO Rajesh Gopinathan TCS Q2 result preview: Here's what brokerages expect TCS Q2 results today, may get major boost from key deals during quarter TCS Q2 net rises 8% at Rs 6,446 cr q-o-q; announces dividend of Rs 7/share
India's largest software services firm Tata Consultancy Services (TCS) is seeing digital deals of "significant size" coming in as clients turn to agile, automation and cloud technologies to deliver enhanced customer experience.
Revenue from digital engagements made up 19.7 per cent of TCS' revenue of Rs 30,541 crore in July-September 2017 quarter, growing 31 per cent year-on-year.
"What we are seeing is that some deals are starting to come which are of significant size and some of them are coming in unexpected areas also... In more traditional ones like cloud and other areas also, deal sizes are significantly increasing," TCS CEO and MD Rajesh Gopinathan said at a recent investor call.
He added that TCS is pursuing "very large engagements" in the Internet of Things (IoT) space worth "multiple tens of millions", which he hopes to close during the course of the ongoing quarter.
Gopinathan attributed the strong performance to the investments made in reskilling the workforce at scale, among other factors.
He elucidated that clients are moving to 'Business 4.0' where they are looking at using technology to make data-driven decisions and enhance customer experience.
Gopinathan cited the example of retailers who are not just offering the lowest prices but helping the customer think through their purchasing decision, acting as an advisor and managing the overall buying experience for the customers.
"The traction shows up in the steadily increasing size of digital deals, and in our digital revenue growth, as well as in our client metrics," he added.
Gopinathan said TCS is doing a number of small pilot projects in some critical consumer-related areas involving IoT, automation, artificial intelligence, analytics, integration of video technologies, facial and voice recognition technologies.