TCS is entering FY22 with strong growth momentum: CEO
BENGALURU : Tata Consultancy Services (TCS) Ltd is entering FY22 with strong growth momentum and higher visibility for future growth on the back of a strong order book built up throughout the year and a robust deal pipeline, Rajesh Gopinathan, chief executive officer and managing director, TCS, said in its annual report for 2020-21.
TCS’s order book in every quarter of FY21 was higher than the corresponding period of the previous fiscal. It closed the March quarter with an all-time high total contract value (TCV) of $9.2 billion. The full-year order book stood at $31.6 billion, the highest ever, representing a growth of 17.1% over the prior year.
“In the medium and longer term, we see strong structural growth drivers triggered by the multi-year technology refresh cycle that our customers are embarking on, and their increased focus on growth and transformation (G&T) initiatives,” Gopinathan said. “The G&T opportunity is very large, and yet to be fully scoped.”
As digital transformation of clients strengthens over time, new technologies will drive further investments by the customers. “So, we believe this market will see tremendous growth in the coming years. That puts us in a very advantageous position,” he said.
During FY21, several clients channelized their technology investments on to the cloud. “As more and more enterprises get on to this journey, the cloud will become the seamless technology fabric that will bring together enterprises from across industries to form collaborative ecosystems which co-innovate around their individual products and services,” Gopinathan said.
In addition to the large outsourcing opportunity which TCS continues to dominate, it is now entering a large, growing opportunity that significantly expands the addressable market, Gopinathan said. “It is an exciting growth journey we are embarking on for the next few years.”