In a positive note to Indian IT industry, India's largest IT services provider, Tata Consultancy Services (TCS), has broken into the league of top 10 global IT services companies, moving from the 13th position in 2012 to the 10th spot in 2013.
Twelve years ago, when TCS' revenues were about $1 billion, then CEO S Ramadorai had laid out a vision to be among the top 10 by 2010.
According to experts, It's taken a little longer, partly because of the global financial slump of 2008-09, but the company has now got there, and considering the pace at which it is growing compared to its global counterparts, the ranking could get better fairly quickly in the years to come.
"Talk to any incumbent western service provider today, and the one making them all tremble from the sub-continent is TCS," writes Jamie Snowdon, executive VP of research operations at HfS Research, the consultancy firm that compiled the ranking.
TCS is estimated to have IT services revenues of $10.1 billion (out of its total revenues of about $12.5 billion). IBM ($54.4 billion), Fujitsu ($32.1 billion), Hewlett-Packard ($29.2 billion) and Accenture ($25.4 billion) lead the list.
The research compares IT services, and excludes other areas such as BPO, R&D services and software/hardware products. And it uses figures for the four quarters of calendar year 2013. TCS rose to the 10th spot displacing Montreal-based IT services firm CGI.
India-based companies Cognizant, Infosys, Wipro and HCL are at the 15th, 18th, 20thand 25th positions, respectively, all of them rising by one to three spots compared to 2012. HfS Research believes that Cognizant could be in the top 10 in the next 2-3 years, may be at the expense of US IT company CSC. CSC's revenues last year had dropped compared to the year before.
On TCS, HfS says its aggressive targeting of renewals and new business, particularly in continental Europe, was an important factor in driving its assault on the leaders. TCS, it said, is frequently seen as being the most flexible service provider on pricing and terms, and has a developing reputation for winning any deal anywhere in the world at any price, if it really wants.
Tata Consultancy Services (TCS) surprised the Street by reporting a 48.2% year-on-year rise in its fourth-quarter net profit at Rs 5,297 crore.
An analyst poll by Thomson Reuters had pegged net profit at Rs 5,198 crore.
The net profit growth was also higher than the 25% posted by the closest peer, Infosys.
However, on a quarterly basis, TCS's net profit grew only by 0.5% sequentially.
On the dollar-revenue front, revenues of the India's biggest software services provider grew by 1.9% quarter on quarter (qoq) at $3,503 million as compared with $3,438 million in the last quarter, but way below the analyst estimates of 2.5%.