IT Outsourcing Company Posts Unprecedented Revenue Growth

Last week, India’s IT outsourcing giants Tata Consultancy Services (News - Alert) (TCS), Infosys Technologies and Wipro were predicting impressive gains this year. As a result, all three were hiring professionals in large numbers to meet this growing demand. Infosys (News - Alert) Technologies was the first to post a strong revenue growth for the July-September quarter.

This week TCS raises that bar to $2 billion, are up 12 percent from the previous quarter and 30 percent year-to-year growth. Net income for this quarter was $455 million, up 13 percent from the earlier quarter. At this rate, the outsourcing giant is expecting to end the fiscal year with $8 billion in revenues.

In a company statement, TCS CEO and managing director, N Chandrasekaran, said, "It has been a quarter of superior performance across the board, driven by volume growth of over 11 percent. In uncertain economic conditions, our results are a milestone on the path to strong demand recovery. Our teams have displayed agility to respond to these opportunities across markets and more importantly, execute flawlessly.”  Chandrasekaran continued, “Given the growth we have achieved across all industry units, we are very positive about the global demand recovery going forward while being watchful in view of the macro environment."

According to TCS, all major outsourcing markets showed double digit growth, Europe leading the pack. The IT outsourcing firm’s North American revenues crossed one billion dollars. Impressive gains were also seen in all emerging markets with India and Asia-Pacific leading the group.  

Some key wins for the company include, Canada's large financial institutions, a Fortune Top 50 Healthcare company, a U.S.-based large banking and financial services institution, the Phoenix Group, a leading publishing and education services provider, a leading grocery retailer, and a leading North American general merchandise retailer. In addition, a state government in India selected TCS to transform its food and civil supplies system.

During this quarter, the company was granted two patents. It has applied for 380 patents, out of which 64 patents have been granted, said TCS.