On the Growth Path

03 Jun 2008 09:03 IST

New Update

The telecom division continued to make significant contributions to the
revenue of IT bellwether, Tata Consultancy Services (TCS) with telecom business
growing at 32.3%. The telecom vertical managed to retain its share in the total
TCS revenue, contributing 17.4% of the total revenue of Rs 22,863 crore for FY
2007-08. In the previous year, the telecom vertical had contributed 17% to the
revenue of Rs 18,685 crore.

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TCS continued to focus on large transformational and long SI contracts. IP
transformation, assurance, and BPO services were the other focus areas for the
company. The year gone by saw TCS innovating in mobile applications in
enterprise productivity, and applications on broadband. The telecom vertical
also recorded growth in the existing telecom accounts due to significant
opportunities in cross-selling and positioning of new service offerings.

While earlier the focus was on the European market, last year saw the company
expanding services and partnering clients in the Apac, Middle East, and Latin
America markets.

TCS 7

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TCS won a number of big deals in the last one year. The company concluded a
multi-million euro agreement with Nokia Siemens Networks (NSN) to transfer
product engineering and research and development services and parts of the
operations and business software (OBS) business unit activities from NSN to TCS.

Another important contract for TCS was the Rs 574 crore mission-critical
engagement with BSNL. According to the contract, TCS will provide BSNL with a
comprehensive range of telecom services to enable complete transformation of the
existing systems and processes to next generation convergent billing system. The
current year will see the company focusing on the Indian market as well.

The Indian telecom market is evolving and now offers good business
opportunities. TCS will also focus on the wireline and broadband segments.
Enterprise and consumer application would be the other focus areas for the
company.

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TCS also signed an agreement with Sony Pictures Entertainment to develop and
deploy service-oriented architecture solutions that allow Sony and its customers
to better use all of its IT assets. The framework benefits enterprises across
verticals including media and entertainment, insurance, banking, retail,
financial services, and manufacturing.

Another important deal for TCS has been to provide product engineering and
research and development services to one of the world's leading telecom
equipment companies in a deal worth Rs 280 crore.

We have had continued growth from
telecom across most of our offerings

VP and deputy head, Telcom Practice, TCS

Sivasamban N

Address: Tata Consultancy Services (TCS House) Raveline Street
21, DS Marg, Fort Mumbai

Mumbai, 400001, Maharashtra India

Tel: +91-22-67789081 Fax: +91-22-67509344

Website: www.tcs.com

Highlights

Rs 574 crore contract
with BSNL
Rs 280 crore deal with
one of the world's leading telecom equipment companies
Focus on the Apac,
Middle East and Latin American markets
Foresee opportunities
in IP and broadband networks, next generation mobile services, IT/IS
operations and technical domain expertise

How would you rate the performance of the
TCS telecom division in the last financial year?

We have had continued growth in our revenue from the telecom vertical across
most of our offerings. Large transformational, long-term system integration
contracts remain our key focus area of growth. We have had significant
growth in the existing accounts due to significant cross-sell opportunities
and positioning new offerings.

What were your major achievements in the
last financial year?

One of the world's leading telecom equipment companies has selected TCS
to provide product engineering and R&D services for its operations, and its
software business unit in Europe in a deal worth Rs 280 crore. We have also
expanded our services and have engaged with clients in the Apac, Middle
East, and Latin American markets. Growth in existing telecom accounts is due
to significant cross-sell opportunities and positioning of new service
offerings.

What is your outlook and strategy for the
current year?

We would like to maintain our position in the international and domestic
markets with special focus on next generation solutions. We are fully geared
to meet the demands with adequate business and technical domain expertise.

We foresee opportunities in the areas like IP
and broadband networks, next generation mobile services, IT/IS operations
and technical domain expertise. Some of our focus areas would be SOA
enablement, service and product portfolio management, broadband and VAS,
mobility applications, and product engineering and conformance testing.

What are the new opportunities for you in
India?

India is a happening market for us. The industry is talking about adding
8-9 mn subscribers a month. The recent regulatory changes relating to 3G,
mobile number portability, MVNO, and new licensees can bring in new business
opportunities. We will be ready with our services whenever the market
requires. These can be hosting services for MVNOs, content applications for
3G services, solutions for MNP, etc. The entry of new operators will also
create fresh opportunities.

In the wireline and broadband space too, we
see a lot of scope for business. Though growth in the broadband sector may
not be in line with the growth in mobile services, there is a huge demand
for broadband services. The companies have already started talking about
utilizing WiMax for last-mile access solutions.

TCS is known for innovation. What are your
plans in this arena for the current year?

We would continue to innovate in application of mobile in enterprise
productivity, and applications on broadband. Availability of bandwidth and
convenience of usage are the main reasons for slow growth in enterprise
applications. Besides enterprise application, we see growth in consumer
applications. Consumer applications include lifestyle applications (like
social networking), healthcare, and retail applications.