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Bloomberg
India’s biggest IT sourcing firm Tata Consultancy Services reported better-than-expected quarterly earnings on Thursday, boosted by rising demand for its cloud computing services.
The firm, based in India’s financial capital Mumbai, said net profit for the three months to June 30 rose to 63.17 billion rupees ($944 million) from 57.09 billion rupees for the same period a year ago.
That was above the 60.6 billion-rupee average from a survey of analysts’ estimates compiled and marked an increase of over nine percent
on-year. “Strong execution and accelerating customer adoption of Cloud, Big Data & Analytics has driven broad-based growth across key markets and industries,” TCS chief executive N Chandrasekaran said in a statement.
“Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge.”
Chandrasekaran told a press conference he remained optimistic about future earnings and said the firm recorded digital revenues at 15.9 percent in the first quarter. TCS added 17,792 new employees during the just-ended quarter.
In May 2013, TCS was awarded a six-year contract worth over ₹ 1100 crores to provide services to the Indian Department of Posts. In 2013, the firm moved from the 13th position to 10th position in the League of top 10 global IT services companies and in July 2014, it became the first Indian company with over Rs 5 lakh market capitalization.
In Jan 2015, TCS ends RIL’s 23-year run as most profitable firm.
India has become a back office to the world as companies, especially in developed nations, have subcontracted work to firms such as TCS, taking advantage of the country’s skilled English-speaking workforce.
TCS won the contract to create an online tax system (digiTax) for a US$1.2 million. The system was supposed to go live in July 2004 but was plagued by several delays. Tata developed the software at its offshore development center in Chennai, India. The software was rejected by Charleston County during user acceptance testing where it failed to meet even the basic requirements. County sued Tata and it agreed to pay back $1 million in out of court settlement.