Tata Consultancy Services (TCS), the wholly owned subsidiary of Tata Sons, seems poised to post a turnover of around Rs 1075 crore for the year ended March 31,1998.
The company had posted a turnover of Rs 721 crore in 1996-97. The last fiscals estimates mark an almost 50 per cent increase over the previous years figures.
The companys gross profit is also likely to see a 70 per cent rise to Rs 300 crore from previous years Rs 175 crore. Its robust performance has surpassed all expectations. The company has been growing at a rate of 35 per cent over the past few years and had expected to clock a similar performance in 1997-98.
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Earlier during the year, the McKinsey & Co report on restructuring of the Tata group had suggested that the group should lay special emphasis on infotech and software services.
With a turnover of over Rs 1,000 crore and a workforce of nearly 10,000, TCS is now one of the largest information technology consultancy firms in Asia. In a recent meeting, an upbeat TCS board chalked out an ambitious corporate strategy aimed at transforming the company into one of the top 20 information technology and software consultancy firms in the world by the turn of the century. The details of the strategy will be worked out over the next few months.
TCS activities are broadly divided into the financial sector, telecom industry and retail business. All these are carried out through various centres, each of which is seen as a source of profit and growth. The company late last year had initiated a process to merge its computer consultancy and management consultancy divisions. Nearly 80 per cent of the companys revenue comes from software exports. In software, TCS is currently stepping up its focus on banking software, enterprise resource planning (ERP) and telecommunications.
TCS is focusing on integrated software for banking services (ISBS) in the country and is also implementing, Quartz, an investment banking software for European markets. TCS is also addressing the growing software package market in the country.
The company, having launched an accounting software EX NextGen earlier this year, is on a drive to enter into tie-ups with independent software companies under its Partner Development Programme to develop software applications which will be integrated to EX NextGen.
TCS has earmarked a Rs 60-crore investment for its operations during the year in Calcutta and Jamshedpur. The TCS project for 130,000 sq ft office space in Calcutta is already halfway through. The work for TCSs facility in Jamshedpur is on full swing. This satellite office is likely to be operationalised during the year.