India’s largest IT services exporter – Tata Consultancy Services (TCS) – has said that its biggest business vertical – banking, financial services & insurance (BFSI) – will continue to do well and the momentum is likely to sustain during 2016.
The BFSI vertical which accounts for around 40% of TCS’ revenue, had recorded a 15% growth in calendar year 2015 on constant currency basis.
Talking to mediapersons at the Nasscom India Leadership Forum, TCS CEO N Chandrasekaran said, “There are excellent opportunities like in the areas of digital transformation, governance etc.”
The statement by TCS is in contrast to the commentary given by Cognizant which spoke about certain market challenges from the financial services vertical.
According to Cognizant, the discretionary spend in the financial services vertical has come down and that the situation needed to be watched for a couple of more months.
This unexpected blip in financial services vertical had led to Cognizant giving out a more muted guidance for 2016 of 10-14% revenue growth as against the 21% it recorded in 2015.
The TCS CEO, while referring to the operating profit margins of the company, said it has provided a range of 26-28% and it is likely that it will stay in this band.
Queried about the various government projects in India where TCS has encountered certain challenges like non-payment of dues or change in the contract, Chandrasekaran said, “We are very active in government bids and have a lot of work in departments like railways, income tax,” adding, “We are engaged.” TCS reportedly was not given the payment for the passport project it was engaged with the government. Similarly, it had bagged the contract from the ministry of corporate affairs but later it moved onto to Infosys. He said that digital India is a great vision of the government and many problems of the country can be solved through the use of digital technologies.
On the broad technology shifts and business opportunities, Chandrasekaran said the digital theme will be one of the key drivers for the company and will create new business opprotunities.