TCS eyes $200 mn from blockchain technology in FY19
Tata Consultancy Services Ltd (TCS) believes 2018-19 will be the year of blockchain adoption by the largest banks and stock exchanges, which should eventually help the Mumbai-based company generate at least $200 million in annual revenue from its blockchain practice.
TCS’s sanguine approach to one of many technology domains clubbed under digital is significant for two reasons.
First, it underscores how India’s largest information technology (IT) outsourcing company is making itself futureproof by investing and monetising from newer technologies. Second, TCS’s ability to scale up blockchain reflects the company’s overall strategy to build rather than buy talent and technology in the new areas.
“I believe this year will be a year of Blockchain,” TCS’s chief operating officer N Ganapathy Subramaniam said in an interview last week.
“What I mean by this is that until now we have seen a lot of proof of concepts but over the next 12 months we’ll see a lot of projects of significance, which will set us up for a greater momentum in the coming years.
“Banking is one sector, especially with respect to payments, trade processing and settlements in capital markets which are seeing very advanced stage of adoption of blockchain.”
Subramaniam declined to quantify for now the business generated by individual digital components, including blockchain but expressed optimism about the road ahead.
“Yes, I believe so as there is an opportunity and we are veryvery focused on it,” Subramaniam said when asked if the company’s blockchain practice can become a $200-300 million business by the end of March 2019.
TCS, which started the current financial year on a good note by reporting its fastest sequential growth in four years in the first quarter, claims business from digital accounted for $1.26 billion in the April-June quarter. Digital is the fuzzy term to define all new technologies like data analytics which most Fortune 1000 clients want their IT vendors to offer to help them run their business better. Cloud computing and data analytics are believed to be the largest contributors to the digital revenue at TCS.
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