Tata Consultancy Services (TCS), there remains hope for tech adoption and transformation prospects in India, Brazil, and other regions “growth markets” despite certain short-term challenges.
Girish Ramachandran, TCS’ President-Growth Markets, told media that the company is still optimistic about the potential of the domestic market and is focusing more on India, where a number of favorable factors, such as economic growth, innovation, and a favorable demographic, are all coming together at this time.
“…there has been a sense of optimism around all the markets that I go to. Yes, there will be headwinds in the short term but overall if you look at most markets, whether it is Brazil, whether Saudi Arabia, whether it is India, whether it is Asia Pacific, there is a sense of optimism and most markets tend to do well in terms of the GDP growth, so overall I do think that from ‘growth market’ point of view, we should do well in the coming year,” Ramachandran said.
Six to eight percent of the company’s total income comes from India, which amounts to a sizeable USD 2 billion portion considering TCS’ FY25 sales of over USD 30 billion.
“So it’s a fairly large piece of the business for TCS and almost all sectors are doing well, especially the financial services sector that we have a very strong foothold in, and we continue to ensure that we double down on that as well,” he said.
Due to a 6% increase in revenue to Rs 2.55 lakh crore, or more than USD 30 billion, TCS’ FY25 net profit increased 4.2% to Rs 48,553 crore.
The largest IT services company in the nation recorded a 1.7% drop in net profit for the March quarter, coming in at Rs 12,224 crore, mostly due to a contraction in margins.
K Krithivasan, the managing director and chief executive of TCS, stated during the April 10 results conference that the company anticipates FY26 to have more revenue than FY25, but acknowledging the continuous difficulties, such as the delays in making decisions regarding discretionary expenditure.
According to Ramachandran, technology adoption is increasing in TCS’s growth regions of Asia Pacific (APAC), the Middle East and Africa (MEA), and Latin America (LATAM). This is supported by a growing understanding that technology can lead to improved services for businesses and citizens.
“If you look at most markets, there is a sense that technology will change livelihoods of people and citizens at large…most of these markets are going to jump one technology wave and with new technology emerging in these markets, there is a sense of optimism that technology can actually provide better services to the citizens and to business, at large,” he said.
Depending on the needs, cost optimization or transformation deals could take place, Ramachandran said, adding that TCS is well-positioned with its offerings in both scenarios. He also questioned whether the growth runway provided by these markets can, to some extent, mitigate the impact of macro-uncertainties in larger global markets with trade and tariff overhangs.
“If you look globally, we are still 2.7 per cent of the market share globally. So there is still a lot of opportunity that TCS can play, whether it is a major market or growth market. There could be a shift in the opportunities. For example, if the markets go down we would go and position our cost optimisation play. That is a significant opportunity for large IT companies like ourselves. And in the growth markets where there is a lot of optimism, or not so much pessimism, there is sense that transformation could be a large opportunity for these markets. So, overall, I do think that we can play across multiple segments and there is an opportunity for TCS to be in all these spaces,” according to Ramachandran.
Regarding certain foreign agencies reducing India’s GDP forecasts to 6.2% to 6.7% for FY26 and if he expects this to have an effect on domestic IT spending, Ramachandran stated that it is too soon to make any judgments but that the majority of customers still make investments.
“As of now, we go to most of our customers, they continue to invest in the market. At 25 basis points, there is not so much to call for in terms of growth (impact). If we go to any large country and say that we are only going to degrow by 25 basis points, any country will take it. In that way, I do think there is a sense of optimism across these markets, and the public sector spend in India will also continue to grow,” he said.
In an effort to boost the nation’s data sovereignty and advance AI capabilities, the IT services giant on Thursday revealed India-focused products, such as a domestic and secure cloud for government and public sector businesses.
TCS SovereignSecure Cloud uses the company’s data centers in Hyderabad and Mumbai availability zones to protect sensitive data inside India’s boundaries.
In India, the Tata Group firm also unveiled its internationally acclaimed Cyber Defense Suite and TCS DigiBOLT, an AI-enabled low-code platform that it said would help businesses to accelerate their digital innovation and cyber resilience.
One of the products in the lineup is SovereignSecure Cloud, an innovative, domestic, and safe cloud for government and public sector organizations that fortifies India’s data sovereignty and boosts its artificial intelligence capabilities. This cloud supports regulated sectors, public sector businesses, and government organizations with integrated AI capabilities.
“I think it’s an opportunity for India to really accelerate. And that is why we are also doubling down on what we can do in the country,” Ramachandran said.
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