My Job Search and Trends in Industries

TCS aims to double India revenues

April 24th, 2009

NEW DELHI: The tough economic climate overseas is making Indian IT companies look homewards. Joining the trend, India’s largest software exporte
r Tata Consultancy Services (TCS) is eyeing to double its India revenues to a billion dollars over the next three to four years.

Witnessing a double-digit growth, the company earned about $500 million from the domestic market in fiscal 2009. This was 8.2 per cent of its total revenue.

TCS’ Chief Operating Officer and Executive Director, N Chandrasekaran told a business daily that the company which has been focusing on the Indian market for a long time expects to double its revenues from the Indian market in the next three to four years.

Lately, Domestic market has become critical for Indian IT companies as customers in their top markets, US and Europe, are slashing their IT budgets.

Recently, TCS rival Infosys too said that it sees a pipeline of $1 billion from India over next few years.

According to research firm Gartner, Indian government organisations, excluding state-owned companies such as BSNL, spent almost $580 million purely on IT services in 2007.

Also, government organisations such as India Post, Indian Railways and other undertakings including LIC will reportedly spend around $2 billion on IT this year, as the government’s share of total IT spend in India is set to cross 10% over the next two years.

Apart from two mega deals worth $100-300 million being considered by India Post and Indian Railways, there are around three smaller outsourcing contracts being considered by ONGC, LIC and SBI. While LIC is currently evaluating an outsourcing contract worth almost $70 million to be awarded in the next few months, ONGC and SBI are yet to structure their IT outsourcing contracts.

Indian Railways, which is the second largest rail network in the world, also plans to outsource a contract called `implementation of software-aided train scheduling’, valued at around Rs 450 crore. Companies such as TCS, Infosys, Wipro and Satyam are already bidding for this contract. The project will help railways do real-time train scheduling and management with the help of a software solution.
Source:TOI

Entry Filed under: Uncategorized