When Rajesh Gopinathan took over the reins of TCS in February 2017, the IT space was under tremendous pressure, especially owing to digital disruptions across sectors. Hence, foremost on his agenda was to invest in new capabilities across technologies like artificial intelligence, automation, Internet of things and analytics. Hiring local talent has also taken precedence in the wake of the visa restrictions imposed by the US. TCS is addressing the dearth of professionals with technical flair in the US, by investing in STEM (science, technology, engineering and mathematics) education in the country.
Between April 2014 and March 2018, TCS' standalone profit increased from `18,475 crore to `25,241 crore, thanks to strong demand in digital across all industry verticals. "Our Business 4.0 thought leadership framework that allows enterprises to leverage digital technologies to further their growth is resonating well with our customers," says Gopinathan. Its growing presence in multiple industry verticals has helped weather cyclical pressure in sectors such as banking and retail. "We reorganised the services and created a new group called Business & Technology Services Group to look at growing digital offerings," he adds.
The digital vertical accounted for 21.2 per cent of TCS' revenue in the last financial year. Over time, Gopinathan hopes, this will become 80 per cent. Retail and consumer packaged goods (12.2 per cent) is another major revenue generating vertical for the company. However, the fall in revenue share from the BFSI vertical in the last financial year is a concern.
Last month, TCS created history by crossing the $100-billion market capitalisation mark.