TCS expects strong 2014 growth from increased outsourcing
Tata Consultancy Services (TCS) is expecting robust growth for the year fueled by more outsourcing activities, even as it rounds up its fourth quarter with a 51 percent climb in profits.
India's largest outsourcing vendor posted 53 billion rupees (US$879.42 million) in net income for the quarter ended March, slightly higher than the 52.4 billion rupee average analyst estimate, reported Bloomberg. Revenue climbed to 215.5 billion rupees (US$3.58 billion) compared to 164.3 billion rupees (US$2.73 billion) the previous year.
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Mumbai-based TCS said growth will be more robust in 2014, driven by growing outsourcing activities from customers across the Asia-Pacific region, as well as the U.S. and Europe.
CEO N. Chandrasekaran said in the report: "We are exiting the year with a great growth momentum. If you look at what clients are telling us, if you look at the deal pipeline, deal closures, order book, sentiments, and the discretionary spend, taking all of this we believe FY15 will be a stronger year."
He added that sales also would be boosted by higher tech spending among customers in the financial services, retail, and life sciences sectors technology spending. Growth in its home market, though, would remain "soft", amid the country's general elections this year, noted Chandrasekaran, who explained that decision-making and project bids would typically be delayed until elections were over.
He added that TCS would not see its India business improve in the near future, and not at least until September.
The country's general elections are being carried out in nine phases, spanning April 7 to May 12.
TCS in January said it was laying the groundwork for what it touted to be the "world's largest corporate learning and development center", capable of training 50,000 professionals each year. The TCS Learning Campus will be built in technopark area of Thiruvananthapuram over 6.1 million square feet, in a property stretching 97 acres.