Over the last few years, Mumbai-headquartered TCS has sharpened its focus in the emerging digital business, which would span newer technologies such as artificial intelligence (AI), analytics, mobility, the Internet of Things (IoT) and cloud computing. The majority is expected to benefit underlying earnings.
Rajesh Gopinathan, the CEO and MD of TCS pointed out that Europe is likely to become its second largest market after the U.S., sometime in the next four quarters.
"We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive United States capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS", Gopinathan added. While the numbers themselves are more or less in-line with market expectations, why did the shares of TCS hit a 52-week high on the bourses? It is a complete, open architecture solution with an integrated business rules engine, encompassing policy administration, data management, integrated imaging, and workflow administration.
Despite the challenges in the USA market over visa and new regulations, the market managed to deliver growth, albeit marginally.
In addition, a stronger momentum in the digital segment is a bright spot amid subdued trend in banking, financial services and insurance (BFSI) verticals, which contributed over one-third to the total revenue.
The contract, which entails transforming Transamerica's USA insurance and annuity business lines, comes close on the heels of a mega deal TCS had clinched from television rating measurement firm Nielsen. Based on the legal advice received and our internal assessment, we have made a decision to disclose this amount as contingent liability. "We look forward to a great relationship with Transamerica". "Both domestically and in North America, the demand from these two sectors have remained muted all through the year", the executive said. Employees transitioning to TCS will be given the opportunity to remain in the same USA cities where they are now based.
TCS will also expand its existing relationship with Transamerica under this transaction, and locate its operations and staff in Transamerica's offices in various US cities.
To be clear, TCS is not alone in strengthening the digital business-Infosys and Wipro, too, are ramping up their digital businesses as clients push for more transformative services than just cost-savings outsourcing deals. Under its plans 250 M&S employees will be transferred to Tata.