The Mumbai-based company grew revenue by 20% during the year to $1.04bn, which it claims gives it a share of 15% of India’s IT services market, ahead of rivals Infosys Technologies and Wipro Technologies. TCS said it added 4,673 employees during the year, taking its headcount to over 24,000.
TCS is working toward a goal of becoming one of the 10 largest consulting firms in the world by 2010. It already ranks as one of the top 25, but it is likely to require significant M&A activity for TCS to meet its target. The privately-owned company has been planning to raise a war chest on India’s Stock Exchange, but this has been delayed due to the recent poor performance of many of its publicly listed rivals.
For example, Satyam Computer Services’ stock market valuation has fallen by more than 40% since last December. This has been influenced by falling profit margins at India’s software services companies as larger, Western services companies such as EDS Corp and IBM Global Services build up their own offshore resources in order to better compete on price in areas such as applications maintenance and new systems development.
Source: Computerwire
