Rajesh Gopinathan, CEO, TCS
Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services and consulting company headquartered in Mumbai, Maharashtra, India Established in 1968, Tata Consultancy Services a member of the Tata Group has grown to its current position as the largest IT services firm in Asia based on its record of outstanding service, collaborative partnerships, innovation, and corporate responsibility. Tata Group was founded by Jamsetji Tata in 1848 and it is one of India’s most respected institutions today. To help customers achieve their business objectives by providing innovative, best–in–class consulting, IT solutions and services, and to actively engage all stakeholders in a productive, collaborative, and mutually beneficial relationship. TCS' ability to deliver high–quality services and solutions is unmatched. Its early contracts included punched card services to TISCO (now Tata Steel), working on an Inter-Branch Reconciliation System for the Central Bank of India. In 1975 TCS made an electronic depository and trading system called SEMCOM for Swiss company. TCS also established India's first software research and development center called Tata Research Development and Design Centre in Pune, Maharashtra. On 25 August 2004, TCS became a Publicly Listed Company.
It is largest IT employer in India. It provides services to wide range of segment like banking & financial services, energy, resources & utilities, government, telecom, media & information services, etc. TCS acquired Citigroup Global Services(CGSL), India based BPO for $505 million. The acquisition broadened TCS’s portfolio of end– to–end IT and BPO services in the global Banking and Financial Services (BFS) sector. TCS’s enhanced scale and expertise will be providing service improvements to Citi and Citi’s customers. CGSL has more than 12,000 employees located in India and expected to generate revenues of approximately $278 million in 2008. Tata Consultancy Services delivers real results to global businesses, ensuring a level of certainty no other firm can match.TCS offers a consulting– led, integrated portfolio of IT and IT–enabled services delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development. TCS has over 143,000 of the world's best trained IT consultants in 42 countries.
Tata consultancy services is now placed among the most valuable IT services brands worldwide. In 2015, TCS was ranked 64th overall in the ForbesWorld's Most Innovative Companies ranking, making it both the highest-ranked IT services company and the top Indian company.It is the world's largest IT services provider. As of 2018, it is ranked eleventh on the Fortune India 500 list. In April 2018, TCS became the first Indian IT company to reach $100 billion in market capitalisation, and second Indian company ever
(after Reliance Industries achieved it in 2007) after its market capitalisation stood at Rs 6,79,332.81 crore ($102.6 billion) on the Bombay Stock Exchange.
In 2016–2017, Parent company Tata Sons owned 72.05% of TCS;[20] and more than 70% of Tata Sons' dividends were generated by TCS. In March 2018, Tata Sons decided to sell stocks of TCS worth $1.25 billion in a bulk deal.
TCS surpasses Accenture to become most-valuable IT services firm globally
Tata group flagship firm Tata Consultancy Services (TCS) on Thursday became the most-valuable information technology (IT) company globally, surpassing rival Accenture for the first time. At the last closing price of Rs 2,825, TCS was valued at $144.73 billion (Rs 10.6 trillion). Accenture is currently valued at $142.4 billion, while IBM’s market cap is $110.5 billion.
At the last closing price of Rs 2,825, TCS was valued at $144.73 billion, (Rs 10.6 trillion), while Accenture is currently at $142.4 billion
TCS now is much more richly-valued with a price-to-earnings (P/E) ratio of 34x compared to Accenture’s 29x. IBM trades at a P/E of less than 14 times. In the past fortnight, the Mumbai-based. Tata Consultancy Services (TCS) has zoomed past Accenture to become the most valuable IT services company in the world. Though this is the first time TCS has claimed that title it is not the first time it has raced ahead of Accenture.
Back in 2018, IBM was at the top of the market with 300% more revenue than TCS, followed by Accenture in second place. However, in April that year, TCS touched the $100 billion valuation mark and overtook Accenture’s market cap. Now the tables have switched, with IBM in third place.
TCS is worth $144.73 billion on the Bombay Stock Exchange (BSE) and Accenture’s market capitalisation on NASDAQ is a sliver lower at $143.4 billion.
TCS’ stock closed over 3% higher on Thursday, October 8.
“This is very commendable as almost all of its performance has come on the back organic growth, low employee attrition and high EBIT margins,” said Nirmal Bang in its report. IT stocks on a tear IT stocks have been rallying since the Indian IT services behemoth announced its second-quarter earnings on Tuesday. In a strong quarter, TCS quarterly revenue was up 4.8%, and profit grew by nearly 7% over the last three months.
The company’s board of directors also approved a share buyback worth Rs16,000 crore, a move which some expect other IT industries to follow. Wipro has already announced that it has already put a proposal up in front of its directors that will be discussed during the October 13 meeting, ahead of its earnings.