TCS says digital strategy key to driving double-digit growth

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With $7 billion in digital revenues, Tata Consultancy Services' (TCS) digital strategy is a key growth factor driving its double-digit growth.

Digital component now accounts for about 32.2 percent, a growth of 42.1 percent YoY. This strong growth is driven by continuous spending in technology as enterprises move to cloud and are working on several digital initiatives.

Addressing media persons, Rajesh Gopinathan, CEO, TCS, said, "Tech spending is the only kind the companies want to protect." It rather is considered as strategic than a cost, he added.

To cater to this demand, Gopinathan said, TCS is doing different types of digital projects.

Going forward, Gopinathan pointed, almost everything the company does will have a digital footprint. Digital solutions are integrated across the spectrum be it wealth management in banking or using new age technologies for its applications.

While a majority of the work involves helping enterprises move their infrastructure to the hybrid cloud, enterprises are investing in the digital payment-related transformation that includes embedding payment gateway in frontend applications and also the backend.

In an earlier interaction with Moneycontrol, Chirajeet Sengupta, Partner, Everest Group, that TCS has always been good at IT modernisation. “Now what is happening is as TCS matures its capabilities, they are trying to move aggressively in the whole business transformation of digitalisation. They are having some strong initial success," he added.

TCS is also seeing increasing visibility in blockchain, especially in the insurance settlement space through its blockchain application Quartz.

TCS’ India portfolio has seen significant growth at the back of its robust digital strategy. TCS’ India revenue grew 15.9 percent year-on-year as the company’s participation in public sector digital projects increased. Gopinathan said, the company’s participating and getting nation building new projects from the government.

Recently, TCS was selected by the Reserve Bank of India to implement its centralised information and management system (CIMS). The project cost is close to Rs 300 crore. Other competitors for the project include IT majors Infosys and IBM. CIMS will have a data warehouse and Data Lake (DL) that will collect data from regulated entities.

Even as the company’s digital portfolio grows big, Gopinathan said the structured break up of its digital revenue has to wait as “a lot of services are continuously changing and converging.”