Tata Consultancy Services (TCS) expects transformational deals across BFSI to continue driving its growth. CEO & MD N Chandrasekaran in an interaction with FE?s Shobhana Subramanian and Rachana Khanzode, said the firm expects its non-linear model to contribute 30-40% to revenues in the long-term. Excerpts:

Is the current environment still cautiously optimistic and has there been any tweaking in your business model?

The environment is positive and has improved every month. As long as we continue to change and add new solutions and services, there will be opportunity and we will continue to do well. Our infrastructure business has grown to $600 million and is likely to touch $5-6 billion. We need to look at the next change where we can bring compelling solutions. Outcome-based models, non-linear based models, banking clouds and business clouds are some models the customer has to get used to. We expect these to bring a material percentage of the incremental revenue.

How will these models contribute to revenues in the next three years?

The most important aspect is to get our non-linear model to contribute in a material way, of at least 10%. Then, we can foresee a timeline when these would contribute 30-40%. Currently, it is immaterial and we need work on that.

What would be the growth drivers in the coming year?

Overall IT spend hasn?t picked up at large, but whatever has come up, we have been able to capture a big part of it. So our addressable market has grown because we are more efficient and have more services to offer. Also, clients are now more receptive. So discretionary spending is coming back, but in packets. We see growth across sectors, but the BFSI sector will continue to drive growth. At least in the short term, we see transformational, integration and compliance-led BFSI deals, as they need to be more efficient. We are also looking at this vertical in markets like Latin America and China.

How big is the India market for you and what are the opportunities here?

India contributes about 9% of our revenues. Recently, we won four deals in the power sector totalling about Rs 1,000 crore, which will be implemented over 12-18 months. The other important area is UID, which is a market of more than $1 billion and the opportunity for us runs into a few hundreds of millions of dollars in the next 18-24 months. This is to build a UID practice through our products and support this system in direct and indirect forms. It is relevant to TCS with respect to UID registration systems. But there is an important element of UID, which requires the systems that are already built to be made UID-compliant. Having worked on banking applications, passport systems, NSDL work, and Tax Information Network, we have already touched more than 400 million citizens. We also have our own solutions and will want to make them UID-compliant.