Tata revenue, profit boosted by strong outsourcing market

The Indian outsourcer saw growth across key industries and markets it addresses

Tata Consultancy Services posted strong revenue and profit growth in the second quarter, taking advantage of an uptick in the outsourcing market.

Revenue growth in the quarter came from all the industries the company addresses, except the insurance segment, which saw muted growth, TCS CEO and Managing Director N Chandrasekaran told reporters Thursday.(

TCS also had strong demand from key markets like North America, Europe and the Asia-Pacific region.

The company had revenue of close to US$3.7 billion in the quarter, a year-over-year increase of 16.7 percent, according to IFRS (International Financial Accounting Standards). Net profit was $845 million, up by 20.5 percent from the same quarter last year.(

The company's margins have stayed steady despite the appreciation of the rupee and a 10 percent wage hike, Chandrasekaran said. The company added 4,967 staff in the quarter, taking the total to 305,431 at the end of the quarter.

TCS, which is India's largest outsourcer, is benefiting from a rebound in the outsourcing industry, reflected in the signing of many new contracts.

Market intelligence firm Information Services Group said earlier this week that the global outsourcing industry had experienced its highest ever second quarter.

The ISG Outsourcing Index, a measure of commercial outsourcing contracts with annual contract value of $5 million or higher, showed that a record 340 contracts were signed in the second quarter, with most growth coming from deals valued at under $40 million annually.

Competitor Infosys reported last week that its revenue for the quarter grew 7 percent year on year, to $2.13 billion, while net profit grew 15 percent to $482 million, on the back of some large deals.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingbusiness issuesservicesfinancial resultsoffshoringTata Consultancy Services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?