Tata Consultancy Services gets new CEO
Posted on | October 8, 2009 | 1 Comment
Natarajan Chandrasekaran took over as chief executive of Tata Consultancy Services on Tuesday, vowing to boost the global market share of India’s largest outsourcing company.
“We’re going to focus on growth,” he said.
Under the 13-year leadership of his predecessor, Subramaniam Ramadorai — who stepped down at the mandatory retirement age of 65 and will serve as a nonexecutive vice chairman and member of the board — the company’s revenues grew from about $150 million a year to nearly $6 billion.
“The $6 billion is only a 1 percent share” of total information technology services spending, Chandrasekaran said. “There’s a lot of headroom for growth.”
Globally, TCS says it is the eighth-largest software services company by revenue.
In addition to pursuing strategic acquisitions, especially in Europe and Japan, Chandrasekaran said the company would focus on organic growth, pursuing larger deals as the IT industry consolidates, and turning more to emerging markets like India.
TCS profits have continued to grow, albeit at a slower pace, through the global economic crisis.
After growing 32 percent in the year ending March 31, 2008, net profit rose only 1.17 percent in the July to September 2008 quarter from a year earlier, but recovered to 22.3 percent growth in the quarter ending June 30, 2009.
Chandrasekaran said outsourcing firms like TCS can help companies run more efficiently and cut costs at a time of rising cost pressures.
“Our business model is also a solution to the economic problems the world is facing,” he said.
Chandrasekaran said there is “huge organic growth potential” in software services because of the legacy of two decades of messy globalization that often left multinational banks and manufacturers with multiple, inefficient information technology systems.
In recent years, TCS has focused on expanding its global footprint, with centers in Mexico, Argentina, Brazil and the United States. About 11,000 of the company’s 140,000 employees are non-Indian workers hired overseas.
Chandrasekaran said the company would continue to hire local workers, especially for sales and management positions, and is now recruiting 250 additional employees in Cincinnati, Ohio, to work on government and health care projects.
He said clients in the U.S. seem to be recovering faster than those in Europe, with financial services firms leading the way and manufacturers and telecommunications companies lagging.
“It’s a slow recovery,” Chandrasekaran said. “But definitely the recovery is happening.”
Before his appointment, Chandrasekaran was the company’s chief operating officer and executive director. He has worked at TCS since 1987.
Article Source: http://www.mercurynews.com/
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October 9th, 2009 @ 9:30 am
Ramadorai had given TCS a stable situation and now it’s Natarajan Chandrasekaran’s turn to move TCS forward to a new direction. I saw Ramadorai once and I saw that he always put stress on offshore outsourcing. Though India till now a greedy place for the investors but problem is that the neighbor countries are gaining popularity in the outsourcing market. This means there will be a division among the investors of the Indian market.
http://www.offshoreadvisor.com/resources/history-of-outsourcing-to-india/