Ra­jesh Gopinathan, CEO & MD re­flects on FY 17 and the cur­rent IT out­sourc­ing mar­ket dy­nam­ics

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What is your ap­praisal of FY 17 from an in­dus­try and TCS’s per­spec­tive? In a largely frag­mented mar­ket land­scape, TCS has his­tor­i­cally grown much faster than the mar­ket, driven by sig­nif­i­cant mar­ket share gains on ac­count of a su­pe­rior ex­e­cu­tion model. In the lat­est fiveyear pe­riod, while the mar­ket has ex­panded by a CAGR of 1.7% (IT Ser­vices CAGR: 0.5%), TCS showed a CAGR of 11.6% in USD terms.

The global busi­ness is tran­si­tion­ing to a new age where tech­nol­ogy is play­ing a cen­tral role in the growth of ev­ery in­dus­try by delivering a su­pe­rior cus­tomer ex­pe­ri­ence any­time, any­where. The power of a busi­ness now de­pends on its abil­ity to man­age the tran­si­tion from process ma­tu­rity to data ma­tu­rity. The IoT is about cap­tur­ing data from ma­chines and sen­sors; cloud is help­ing make the data avail­able at scale as and when needed; au­to­ma­tion and ar­ti­fi­cial in­tel­li­gence are help­ing sift through enor­mous quan­ti­ties of data, and an­a­lyt­ics is help­ing de­rive in­sights and make use­ful pre­dic­tions from that data.

The ex­plo­sion of pos­si­bil­i­ties brought about by Dig­i­tal tech­nolo­gies is chang­ing the re­la­tion­ship be­tween busi­ness and tech­nol­ogy, driv­ing Dig­i­tal reimag­i­na­tion across in­dus­tries, struc­turally in­creas­ing tech­nol­ogy spend­ing, and open­ing up new growth op­por­tu­ni­ties for TCS.

How would you place TCS right now given the pro­tec­tion­ist men­tal­ity in both Europe and the US and the dis­rup­tions hap­pen­ings in the tech space? The cur­rent dis­course on the is­sue in the US is driven by emo­tions rather than the econ­omy and the best way to tackle it is through greater en­gage­ment. Some­times, com­pa­nies like us get char­ac­ter­ized is very dif­fer­ent from the re­al­ity of what we bring to the ta­ble. The in­dus­try is not an out­come of a visa reg­u­la­tion. We have gone through a huge rev­o­lu­tion on the tech­nol­ogy side. The sheer ex­tent of tech­nol­ogy work glob­ally has ex­panded many fold and India has emerged as a phe­nom­e­nal source of high-qual­ity sup­ply for it.

The US has been a very wel­com­ing mar­ket for us al­ways. It has pro­vided it with a fair, open and com­pet­i­tive en­vi­ron­ment. We have com­peted and we have won against the global best in this coun­try, on equal foot­ing. The in­dus­try is tak­ing steps to meet the new dig­i­tal trans­for­ma­tion re­quire­ments of cus­tomers just as it trans­formed it­self af­ter the Y2K episode to meet the then e-busi­ness needs of the world. Tech­nol­ogy has be­come so per­va­sive across or­ga­ni­za­tions and so in­te­gral to their suc­cess that the op­por­tu­nity for In­dian IT had ex­ploded. There has also been an al­most un­be­liev­able ex­pan­sion of the mar­ket op­por­tu­nity for In­dian IT. Both within com­pa­nies and across in­dus­tries, the ad­dress­able IT spends has ex­ploded, given the uses that new dig­i­tal tech­nolo­gies can be put to.

What would be the di­rec­tion for TCS in FY 18: the key fo­cus ar­eas and the growth driv­ers and your In­dus­try out­look? We are at that kind of a point now where we have ex­per­i­mented with things over the last few years, we know the di­rec­tion where we are go­ing, all stake­hold­ers be­lieve in it. So, the two key words now are scale and speed. What­ever we are do­ing, we will do it at scale and faster.

At an or­ga­ni­za­tional level, our three fo­cus ar­eas will be Ag­ile, Au­to­ma­tion, and Cloud. The fo­cus ar­eas will shape our so­lu­tion of­fer­ings to our cus­tomers as well as guide our in­ter­nal in­vest­ments in strength­en­ing our ca­pa­bil­i­ties.

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