TCS confident of posting double-digit growth in 2018-19
BENGALURU: With help from Tata Sons chairman Natarajan Chandrasekaran and the senior management team at Tata Consultancy Services Ltd (TCS), CEO Rajesh Gopinathan is now poised to lead his firm to a double-digit growth in 2018-19, which will be the fastest since the company reported a 15% growth in 2014-15.
TCS’S recent deal wins, including two of the largest multi-year billion dollar contracts, in addition to more contracts it expects to close in the coming months, a stable senior management team, and its industry-leading execution ability to complete a project without glitches are the primary reasons behind this optimism, according to a senior executive of the company.
“I believe we should have double digit growth in FY19,” TCS’S chief operating officer, N Ganapathy Subramaniam, told Mint, in an interview last week, adding that this should not be interpreted as the company’s guidance as TCS does not give any quarterly or yearly growth outlook.
“This is not our guidance but as a management team, we have had this major focus to get back to double digit growth. This is one of the strategic KPIS (key performance indicator) for all of us (senior management team),” said Subramaniam, who took over as COO in February, when Gopinathan took over as CEO.
This reversal of fortunes at TCS is remarkable as for 13 quarters it has either underperformed or, at best, managed to match analysts’ estimates.
Structural challenges remain with the rise of cloud computing, along with a push towards automation and artificial intelligence platforms, meaning that IT vendors earn less for the same scope of work done in the past.