Top10 Vendors: 8 - TCS: Global Growth

Voice&Data Bureau

14 Jun 2007 18:19 IST

New Update

It was an excellent year for TCS. The company's telecom division
contributed around 16% and had a net revenue of Rs 18,685 crore in FY '06-07.
Strong international demand and increasing number of large customers had a
positive impact on its profitability.

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The telecom division continued to make significant contribution
to the growth of TCS, making the second highest contribution of 16% of the total
revenue, Rs 3,006 crore. In terms of growth, telecom has grown by around 50%.

The majority of the telecom revenues came from international
clients, and telecom services saw excellent momentum in Europe.

A number of transformation engagements in the OSS/BSS space
across geographies also drove the companies' growth in the telecom sector. For a
European telecom major, TCS delivered an important functionality of a platform
for integrating more than 45 applications, enabling the telecom major to meet
regulatory requirements. SOA-based solution for Pre-Pay point of sale was
implemented for an Indian telecom service provider. It was also selected by a
North American telecom major to provide end-to-end F&A services.

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The company has more than 89,000 employees in which 22,750 were
added in FY '06-07. There are more than 8,000 consultants working with the TCS
telecom practice.

AREA Of OPERATIONS:

Telecom Software

ADDRESS: Air India Building, 11th Floor, Nariman Point,Mumbai 400 021

TEL: 022 67509999

FAX: 022 67509344

WEBSITE: www.tcs.com

Highlights

Telecom
revenues grew 50% y-o-y crossing the Rs 3,000 crore mark
Tied
up with major telecom operators world over to provide solutions
Selected
as a winner of Verizon's 2005 Supplier Excellence Award (SEA) in the
services category
Added
218 customers and closed 12 deals of more than $50 mn

TCS signed a five year strategic agreement with a global telecom
company for providing telecom transformation and BPO services. A US-based
broadband wireless access solution provider engaged TCS for the development of
next generation WiMax solutions.

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For a leading US wireless company, TCS developed a strategic
ordering application and has been asked to sustain its application and enhance
it further. TCS was the only Indian vendor who was selected, and also won, an
important multi-year deal for development/maintenance support for its business
systems from a leading quad play service provider in North America.

A North African service provider selected TCS for the
implementation of order management, inventory, and provisioning of voice and
data services providing an opportunity to expand its footprint in the MEA
region. A leading T&M company selected TCS for a mission critical engagement for
providing WiMax solution. It helped a leading service provider to set up its
21st Century Network (21CN) test factory.

We're well positioned to manage
large outsourcing engagements'

What has been your focus in FY '06-07? What were the drivers for growth?

Our focus for FY '06-07 was long-term SI contracts, IP
transformation, assurance and BPO services, which were the key areas of growth.
Our emerging next generation services are giving the company a superior quality
of revenue and helps in diversifying telecom customers across the globe. We are
continuing to innovate mobile applications for enterprise productivity as well
as broadband applications.

Our growth in communications and network solutions has come from
network management, IMS, NGN transformation, broadband applications, assurance
services, BPO and COTS implementations in the OSS/BSS space.

N Sivasamban

VP and Head, Telecom

How do you view your position vis-a-vis your competitors?

We are very well positioned as trusted leaders in managing large and complex
outsourcing engagements. Our flexible global network delivery model across
geographies, proven methodologies, vast project execution experience and
centers-of-excellence (CoEs), labs and R&D capabilities in niche technology
areas differentiate us from our competition.

What were some of the large telecom projects bagged by TCS in
the telecom space in FY '06-07?

TCS signed a five year strategic agreement with a global telecom company for
providing telecom transformation and BPO services. A US-based broadband wireless
access solution provider for telecom carriers engaged TCS for the development of
next generation WiMax solutions. TCS was also selected by the one of the largest
mobile phone manufacturers to develop a B2B retail portal platform for a leading
US wireless company. It developed a strategic ordering application to sustain
this application and enhance it further. TCS is the only Indian vendor which has
been selected and has won an important multi-year deal for
development/maintenance support for its business systems from a leading quad
play service provider in North America.

TCS provided services to global mobile phone manufacturers to
perform due diligence in upgrading its localized contact center platform to
global contact center platform. It was selected by a North African service
provider for the implementation of order management, inventory and provisioning
of voice and data services providing opportunity to expand its footprint in the
MEA region.

A leading T&M manufacturer selected TCS for a mission critical
engagement for providing WiMax solution. It also helped a major service provider
to set up its 21st Century Network (21CN) test factory.

What is your outlook and strategy for FY '07-08?

Convergence and wireless broadband will be reaching the peak of the telecom
value chain and technologies such as WiMAX will take off. Operators globally
would be looking at IP enablement. We would maintain our position in the
international and domestic markets with special focus on the next generation
solutions. TCS is fully geared to meet the demands with adequate business and
technical domain expertise.

TCS foresees opportunities in areas like IP and broadband
networks, next generation mobile services, IT/IS operations and BPO. Some of the
focus areas for us would be SOA enablement, service and product portfolio
management, NGN/IP migration, product engineering and conformance testing,
broadband, VAS and mobility applications.

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Apart form an international presence, TCS is working closely
with service providers in the area of OSS/BSS, IPTV, broadband, value added
services and network management systems. An SOA-based solution for pre-pay point
of sale was implemented for an Indian telecom service provider. TCS leveraged
its technology and expertise to provide TTSL with a custom built CRM application
that replaced the existing one. The system provided a 360-degree view of
customer information that facilitated efficient customer service.

In FY '06-07 TCS added 218 customers to its list and closed 12
deals of more than $50 mn. It also planned a new development center in Morocco.
The company foresees opportunities in IP, NGN, broadband, and mobile services.
For the next year its focus would continue to be on NGN/IP migration, broadband
and VAS and mobility applications among others.

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