After Tata Consultancy Services (TCS), India's most valued company, created history on Monday when its market capitalisationÂ surpassed the $100-billion mark, N Chandrasekaran, chairman, Tata Sons,Â spoke to CNBC TV18,Â says extremely proud
TCS achievement. Your thoughts on becoming $100 billion company?
I am extremely proud. I have always maintained that
TCS has enormous potential and the digital transformation is only going to accelerate the market potential for TCS and all the things that we have been saying and things we have been working on is picking up momentum. You have spearheaded this journey from aÂ market capitalisationÂ of $10 billion to $100 billion. What is next for Indian IT? Over the last three years, you will agree, Indian IT went through a torrid time. Is that well and truly over now and are we looking at blue sky territory now? Â If you go back to my interactions with you over the last three-four years, I have always said that the digital transformation is going to be the biggest opportunity because there is going to be more technology in every industry whether it's business-to-business (B2B) industry or business-to-consumer (B2C) industry. We have been making these commentaries and also parallelly investing and building capabilities and being ready for this adoption cycle. And this adoption cycle is gaining momentum and if I may say so, it's the start of next big run for TCS. You have gotten into double digit at a time when you are already a very-very big company. What were we counting? Your revenue is Rs 130,000 crore or thereabouts, profit Rs 30,000 crore. Double digit on this base and you saying that you are into another big league. So are you talking of 15%?
I cannot give you a number guidance. We cannot talk about it, but the point I am making is that technology adoption especially in digital domain is picking up. I have always said that delay is because of number of factors. It's not only the capabilities we have; it's also readiness of the clients and all those things are coming together whether it is in auto, whether it is in financial services, whether it is in retail, everyone of this industries will continue to play big in digital and all of those things are opportunities for TCS.
TCS has the scale, the intellectual property, the platforms as Rajesh (Rajesh Gopinathan, CEO & MD of TCS) and team are articulating that the investment they have made in contextual knowledge that we have been doing for several years. All those things are coming together and this transformation is going to propel growth.
Â Can you tell us a little more about this digital led demand because digital is a huge basket, there is cloud, there is analytics. Has the potential peaked in terms of operational benefits for the sector as a whole or is there more to go?
You need to look at the combination of all these technologies that bring about a transformation for a company. Even the number of deals which they won in the last three-four months, which they have announced, all those deals are very integrated in nature. So there is cloud, there is automation, there is analytics and there is customer experience transformation in terms of design.
So all those things are an integrated solutions on tax. TCS not only offering the solutions but are also building platforms where possible and we have been investing on this platforms. It is the timings that matters.
Where does that leave a company like Tata Elxsi for example which is into artificial intelligence, digital, completely separate. What kind of plans would you have for that company there?
I think we should now talk about the moment of TCS.
A lot of investors are now betting big on Tata Elxsi as well. Can that also chart the same path? Â A: I think that is a different conversation. You know the entire Indian IT space, the global economy is chugging on very well. Do you think this tide can lift many more boats? Of course, the big cruise ship like yours but can this lift many boats, the way the global economy is sticking?
Definitely, there are a lot of good companies are out there and all of them have got a strategy and I cannot specifically comment about companies.
Analyst tells how TCS can sustain its $100-billon market cap