NEW DELHI: India’s largest software exporter Tata Consultancy Services (TCS) plans to double revenues from the domestic operations to $1-billion
in the next three-four years, a top company executive said.
“The revenues will primarily flow in from the government, large enterprises and small-medium enterprises segment,” said TCS chief executive S Ramadorai. The domestic market currently contributes 10% to TCS total revenue.
Talking about the overall demand outlook, Mr Ramadorai said the economy has stabilised and demand was not in a downward spiral for sure. But it was too early to call it a trend. Emerging markets such as Latin America, Middle east, Africa and Asia-Pacific region are growing faster than the mature markets.
The company also expects the deal with oil and gas
Asked when would revenue from this contract start flowing Mr Ramadorai said, “Revenues from the deal will start coming in the third quarter of the current fiscal.” TCS was one of the four IT companies that won the five-year IT contract from BP earlier this week.
He said there was uptick in demand from banking, financial services
“In India, we are eyeing deals between Rs 300-400 crore while overseas deals could go up to $500 million. We are working on 25-30 projects in India and chasing some deals floated by the government,” Mr Ramadorai said.
TCS relocated over 1,000 onshore staff in the April-June quarter to offshore sites to increase revenues. The relocation exercise will continue in the current quarter but with lesser number of employees.
Asked if there’s still any pressure on prices, Mr Ramadorai said although some sectors have stabilised, prices continue to remain under pressure from some clients in the manufacturing and telecom sectors.
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