CEO Rajesh Gopinathan is seeking higher-value work from clients such as Rolls Royce and sees contracts in 'digital' services becoming mainstream
Tata Consultancy Services reported fiscal third-quarter numbers roughly in line with street expectations for the three months ending Dececember 31, 2017, helped not only by a pickup in the US, its largest market, but strong traction in Europe and the company’s growing ability to land larger contracts in digital services.
The quarter saw TCS win a $50 million contract categorised under digital services, which is the largest order the company has won in the area.
Chief Executive Rajesh Gopinathan is winning higher-value work from longstanding clients like Rolls Royce, which increasingly consists of end-to-end projects rather than piecemeal outsourcing, reflecting the more strategic partnerships TCS is striking with its large customers.
“Now we are on a run-rate of $4 billion in annual revenues from digital services. I’m encouraged by our ability to retrain and reskill,” to go after these opportunities, Gopinathan said in a conference in Mumbai, discussing the results with reporters, which was webcast.
That also reflects the mere 1,600 net additions to the company’s workforce, during the quarter, which took the total to 390,880 employees.