TCS entering FY22 with strong growth momentum: CEO

BENGALURU: Tata Consultancy Services (TCS) Ltd said it is entering 2021-22 (FY22) with strong growth momentum and higher visibility about growth, on the back of a strong order book built up throughout the year and a robust deal pipeline.

TCS’S order book in every quarter of FY21 was higher than the corresponding period of the previous fiscal, chief executive officer and managing director Rajesh Gopinathan said in the company’s annual report 2020-21.

The IT services major closed the March quarter with an alltime high total contract value (TCV) of $9.2 billion. The full year order book stood at $31.6 billion, the highest ever, representing a growth of 17.1% over the prior year.

During FY21, TCS acquired Postbank Systems AG, the technology services unit of Frankfurt-based Deutsche Bank AG to expand operations in Germany and strengthen its growth outlook.

It also acquired select assets and employees of Pramerica Systems Ireland from insurance firm Prudential Financial Inc (PFI) to expand its nearshore capabilities.

“We had two large deal wins, with Deutsche Bank and with Prudential Financial Inc. respectively, that saw us strengthen our German presence and establish a strong local presence in Ireland,” Gopinathan said.

Analysts believe the deals will pave the way for fetching more business from them in other transformational and strategic projects.

“In the medium and longer term, we see strong structural growth drivers triggered by the multi-year technology refresh cycle that our customers are embarking on, and their increased focus on growth and transformation (G&T) initiatives,” Gopinathan said.

“The G&T opportunity is very large, and yet to be fully scoped,” he added.

As digital transformation of clients strengthens over time, new technologies will drive further investments by the customers.

“So, we believe this market will see tremendous growth in the coming years. That puts us in a very advantageous position,” he said.

During FY21, several clients channelized their technology investments on to the cloud. “As more and more enterprises get on to this journey, the cloud will become the seamless technology fabric that will bring together enterprises from across industries to form collaborative ecosystems which co-innovate around their individual products and services,” Gopinathan said.