Tata Consultancy Services Ltd. surprised the street as its earnings rose in the second quarter and margin jumped to the highest in two years. That, according to chief Rajesh Gopinathan, was led by a “multi-year technology transformation cycle”.
What’s that exactly?
Gopinathan, managing director and chief executive officer at TCS, attributes it to technology leverage—using technology to deliver more value with same or less resources. And that, he said, cuts across all industries.
“It’s not a very widely available capability, and requires not just understanding of the technology layers, which demands significant investments, which we have been doing ahead of the curve, but also the current technology estate (or infrastructure),” the TCS CEO said during an interview with BloombergQuint. “Clients need to understand the current technology they have, and what they need to migrate to in derisked manner.”
Gopinathan expects this to bring more opportunities for TCS, which saw all its verticals—especially banking, financial services and insurance, and consumer retail and healthcare—fire on all cylinders in the three months to Sept. 30. But he cautioned: “We are not out of the woods and we need to be very careful.”