TCS bets on innovation, research in new technology to drive digital growth

In the fourth quarter of 2017-18, the digital segment accounted for 23.8% of TCS' overall revenues, which grew at a healthy rate of 42.8% on a year-on-year basis

Tata Consultancy Services (TCS), India's largest software company, on Friday reiterated its focus on the digital segment. 

Addressing investors at the company’s 23rd annual general meeting, Chief Executive Officer and Managing Director Rajesh Gopinathan underscored the need to continue innovation and research in new technology, and said such measures would help improve the company’s brand position.

“It is very encouraging to see the company’s transition,” Gopinathan said. “We are focusing on the pillars of digital transformation as the new way of working and leading the automation phase while also strengthening the brand position." 

The TCS CEO also said some of the large multi-million deals wins, including the recent one from Rolls-Royce, have been possible owing to the strength of the company in the digital segment. 

In the fourth quarter of 2017-18, the digital segment accounted for 23.8 per cent of TCS’ overall revenues, which grew at a healthy rate of 42.8 per cent on a year-on-year basis.

 

While the company’s business model continued to be services driven, products and platforms were becoming a significant offering within the portfolio,” Gopinathan said.

Over the last five years, the number of $100 million customers grew twice to 38 from 17 due to the transformed portfolio, he added.

Talking about the company’s employee-centric approach, Gopinathan said talent retention and reskilling continued to remain top priorities for the management.

"We maintain the industry's highest retention rate of almost 89 per cent. We also have the largest base of female employees in the industry, who account for around 35 per cent of our total workforce," Gopinathan said.