Quarterly Update
published on Jul 19, 2017
Report Overview:
NelsonHall’s Quarterly Update on TCS provides a snapshot of developments at TCS in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on TCS provides a snapshot of developments at TCS in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT outsourcing services and identifying vendor suitability for IT services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services
Scope of this Report:
The report provides a quarterly update on TCS, looking at financial performance and key developments during the period.
It accompanies NelsonHall’s Key Vendor Assessment program which looks at TCS’ IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphases and new developments
- Revenue breakdowns
- Analysis of the company’s offerings and key service components
- Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Q1 FY18 Performance – management refers to “challenging environment”
- Lowest CC topline growth in six quarters, impacted by softness in BFSI and Retail
- 'Digital’ now 19% of revenue
- Misses 26-28% EBIT target range again
- Won eleven large deals in the quarter
Restructures service lines: senior managers appointed to lead newer digital units
New Business and Technology Services (BTS) organization, comprising three groups:
- Digital Transformation Services
- Cognitive Business Operations
- Consulting and Systems integration.
Other established service practices that have reached scale have been carved out and merged into the Industry Solution units.
Restating vertical revenue reporting: now for major markets only
Claims this will provide more transparency.
Marked slowdown in hiring in India
Overall company headcount down Q/Q.