Quarterly Update
published on Jan 17, 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 sector.
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:
Q3, a recovery after the “unusual quarter” in Q2
IT infrastructure services, engineering services, testing services and asset leveraged solution (software products) continued to deliver double digit topline growth, all stronger than Q2
‘Digital’ accounted for 16.8% of total revenues, a y/y growth of 30% in CC, with strong demand in cloud adoption, big data analytics, UX and IoT.
Operating margin was down y/y, y, but just within TCS’ target 26-28% range.
Attrition continues to reduce; is among the lowest in the industry.
New CEO Succeeds in February
CFO Rajesh Gopinathan becomes CEO on February 21 as N Chandrasekaran becomes Tata Sons Chairman
NG Subramaniam, becomes President and COO.
New U.S. administration
Continues to work on altering business model for lower visa dependence, increasing localization and the number of local hires, with increasing focus on campus hires.