BPO arm of TCS crosses $1-bn mark

Written by Rishi Raj | Cincinnati | Updated: Feb 6 2012, 07:28am hrs
Tata Consultancy Services has achieved another milestone. The companys BPO arm has crossed the billion-dollar mark in revenues this calendar year, CEO and MD N Chandrasekaran told FE in an interview.

TCS is the first among the IT firms offering BPO services to have crossed the billion-dollar revenue mark, in just a span of seven years. Compared to pure-play BPO firms, its revenues from the BPO services ranks second only to Genpact, whose revenues stand at around $1.5 billion.

We followed a different strategy wherein we integrated our IT and BPO services and offered our clients a transformation in their business processes, said Chandrasekaran.

The handicap before pure-play BPO firms is that they do not have IT services to marry with their BPO offerings. To overcome this, most pure-play BPO firms these days are acquiring smaller IT firms. However, analysts say that it will be difficult for them to acquire the scale and size of TCS, thus giving the company a major edge over both its rivals other IT firms offering BPO services and pure-play BPOs.

On the larger environment wherein, with economic slowdown, the demands for protectionism is growing louder and IT firms could face trouble with the prospects of clients slashing their budgets, Chandrasekaran is not overly worried. On the macro-level, we need to wait and watch, but on the micro-level, it is business as usual and we continue to see great opportunities, he said.

On the areas of future growth, apart from the financial services, which drives the bulk of the revenues of the IT companies, Chandrasekaran said, mobility, cloud-based IT services and big data are the areas where we have invested a lot and expect these areas will generate a few billion dollars for us.

To this end, the company last week opened its first customer collaboration centre (CCC) in the Silicon Valley at Santa Clara in California.

The centre will develop mobile enterprise application by developing customised customer-oriented applications for enterprises in segments like retail, aviation, hospitality, etc, which would be retailed through enterprises to their customers.

The company would, however, not get into developing mobile applications, which would be directly retailed to customers. For instance, its customer-oriented mobile applications would be designed for customers through enterprises like, say, a global or a local retail chain, which facilitates easy billing and reward points for buying products from its stores. The retail chain, in turn, will sell the application to its customers.