12.5 pc of TCS' Q1 revenue comes from Digital

Thomas George

TCS had a mild growth during the Q1 FY’16. But the most significant news was that like all other global IT Service players it realizes the importance of Digital Tech opportunities and emerging focus of their customers across the global.

The best take out of TCS quarterly result announcement was they disclosed their digital practice revenues are 12.5 p.c of its revenue during AMJ’15. It means the revenue is close to USD 2 billion annual run rate business.

TCS also created a Digital training program to train 100k employees to build and render their digital tech services capabilities.

The management was very positive and confident about the future opportunities around digital transformation project primarily with the work like application development and maintenance, mobile development, big data and analytics, and more so around organizations transformation to hybrid cloud. It has won 11 deals in digital in total.

They had closed 38 new clients for cloud platform in Q1, which again reconfirms the importance and focus of digital technology services adoption and spending trends among the global organizations.

The company recently launched Ignio, their artificial intelligence-based platform which automates much IT maintenance routine work, and saw a good traction and won 3 major deals already.

TCS quarterly result did not have much to talk from the growth point of view, its revenue grew by 3.5 pc QoQ in constant currency and 6 pc in INR terms.

The markets like Latin America and Japan did not rise up to the occasion and their contribution was very subdued.

In addition to this, the Diligenta revenue was also softer compared to the expectation.

The company secured 9 deals across verticals (BFSI- 3, Retail-3, MFG- 1, Media-1 and Telecom -1) and geographies.

The leading IT Services players and their peers are still aiming to beat the NASSCOM forecast of 13 to 14 p.c industry growth, but given the current performance of major players and future opportunities, it’s unlikely that they all will meet the industry growth forecast.