eyes $1 billion Indian revenue in 3-4 years
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 major British Petroleum to
contribute $30-100 million revenues on an annualised basis over the next
three-five years. 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,
retail and lifescience and the company was aggressively chasing deals in these
sectors. However, manufacturing and telecom sectors were yet to see a recovery.
“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.