Software exporter TCS today said it is confident of continuing to post healthy growth in the BFSI segment next fiscal, allaying fears over the critical financial services vertical following concerns flagged by its rival Cognizant.
“I believe that we’ll do very well (in BFSI) and insurance sector, which has been weaker last year, is seeing a lot of traction. The year has started well for them. I expect all of this will translate into revenues for insurance sector,” TCS Managing Director and Chief Executive N Chandrasekaran told reporters here.
“BFSI (Banking Financial Services Insurance) as a whole will be a very good sector for TCS in 2016-17, like it has been this year,” he said while speaking on the sidelines of the annual Nasscom India Leadership Forum.
The comments come days after Cognizant indicated a possible dip in revenues in 2016 due to difficulties it is facing in the BFSI and healthcare sectors.
“As far as we’re concerned, we see excellent opportunities because we’re partnering with clients in their digital transformation across the world, not just UK and US,” he said.
He added that TCS witnessed 15 per cent rise in revenues from the BFSI segment in 2015 on a constant currency basis.
Chandrasekaran, however, said the macro environment continues to be challenging on concerns over dipping oil prices and currency volatility.
He also welcomed the ‘Digital India’ campaign of the government, saying it has a lot of potential to do good.
Despite facing difficulties in the passport e-seva project, Chandrasekaran said TCS will continue to bid for government projects.
“We will be bidding on domestic projects…TCS has invested a lot in the Indian market in mission critical projects…so it is not fair to say that all government projects are bad,” he said.
Apart from the passport project, he said the company has worked for a host of domestic entities like the NSE, BSE, NSDL, Ministry of Corporate Affairs, Income Tax Department, and the state governments of Andhra Pradesh, Maharashtra and Madhya Pradesh.
Asked about the difficulties surrounding the digital vertical of a large company, he said TCS does not look at it as a challenge because it has made the right investments in the past.
He said as “everything becomes digital”, the company is set to exceed its expectations on the performance of the digital stream.
As against the target of achieving USD 5 billion in revenues from the segment in a few years, announced last year, it has already touched USD 2 billion at present, he added.