Tata Consultancy Services (TCS), the biggest Indian IT company and Infosys, once the bellwether of IT industry, have both announced their financial numbers for the first quarter of the new year. The results give hope that the sector, which has been waiting for a turnaround, might be out of the woods. However, the confirmation would only come after other companies in the sector announce their results
The market and the analysts had different reactions for both the companies. While results of TCS beat the market expectations; analysts were a bit disappointed by Infosys numbers, and were expecting it to at least perform well in all the three areas of retail, BFSI and communication. While TCS scored better on all, Infosys beat expectations in retail.
For the moment, analysts and management experts point to some lessons that many of the IT sector players, could pick up from the results of these two important Indian IT companies.
A common thread or shall we say, the link node running across the strategy of both TCS and Infosys, is the focus on business transformation, both within and also for their clients. Secondly, both the companies are focused on newer technologies - digital, cloud, data analytics, cyber security, Internet of Things (IoT) and end-user experience. Both are also focused on large deals and winning them.
Here are some takeaways that IT companies can take from TCS and Infosys.