TCS posts $5 billion in third quarter revenue
India's Tata Consultancy Services (TCS) has reported $5.25 billion in revenue for the third quarter of 2018, a 12.1 percent increase year on year.
The total from the quarter takes the company's revenue for the nine months ending December 31, 2018, to $20.5 billion.
"We are wrapping up 2018 with a strong revenue growth of 12.1 percent in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies," CEO and managing director of TCS Rajesh Gopinathan said.
The largest areas of sector growth for TCS this quarter were in energy utilities, which grew by 18.1 percent; communications and media, which increased its revenue by 10.8 percent; and retail, which grew by 10.5 percent.
According to Gopinathan, the growth is attributed to the company's focus on "digital disruption", with its digital services revenue increasing by 52.7 percent compared to the same time last year, which accounts for 30.1 percent of the company's total revenue.
"On a secular basis, as large segments of the economy go through churn driven by digital disruption, enterprises are responding with technology-powered strategies -- as in algorithmic retailing or connected cars -- creating a huge opportunity for services providers like us".
In early 2018, the Indian company snagged a 10-year outsourcing deal with Nielsen worth $2.25 billion, which included a digital transformation strategy and was a renewal of a prior relationship with Nielsen that goes as far back as 2007.
This was important for TCS in terms of its ability to adapt to this era of digital transformation.
In November, TCS also acquired US management consulting firm BridgePoint Group in a move it said would boost its domain knowledge in financial services and insurance.
"[BridgePoint's] deep customer relationships and significant industry knowledge adds to TCS' ability to provide digital solutions that enhance sponsor and participant experience, and drive Business 4.0 transformations in the US$1 trillion US retirement services market," TCS said at the time.
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