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On the Growth Path

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VoicenData Bureau
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.

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