Chief executive officer and managing director of Tata Consultancy Services (TCS) Rajesh Gopinathan said there was no reason why the software services company couldn't become a $100-billion company. He said there is no ceiling size for growth.
At Davos 2020, Gopinathan said: “If we think of size historically, but is there really a ceiling to it? Why should we not aspire to be a $100 billion company? So, we believe that the opportunity is out there.”
Gopinathan said, “It (mood at Davos) is surprisingly positive. There is a greater understanding of what needs to be done and therefore there is a commonality of that thinking."
He told CNBC-TV18 over the six months whether it is from a trade perspective or from a geopolitical perspective, things have been not been in collegial spirit. However, the spirit in Davos seems to be lot more cooperative and it seems to be a common cause.
Gopinathan further added there are no immediate headwinds to be addressed, as a lot of trade issues are getting sorted out in more positive way.
The TCS CEO said the company is rapidly gaining scale and relevance in the area like aharma, across segments.
There is a plenty of headroom to grow and achieve aspiration to become a $100 billion company. "All skills can be learnt, have to trust in human potential."
TCS COO NG Subramaniam said the company hopes to finish the journey to become $100 billion in 10 years.
Speaking about the structural shifts in the Indian IT services business model, Subramaniam said: “Automation is for real, that has been our experience. Organisations are realising that innovation is surpassing productivity."
Now, more customers are looking at a quantum jump in resetting their operating model and operating costs, he said.
However, in that process they are also realising that institutions are more than ever willing to share platforms and technologies. So, products, platforms, and patents are going to be very crucial, he explained.
More and more of services and operations that they are currently using part of that value chain, there are a lot of potential in platform-oriented and shared services oriented business.TCS’s algo-retail platform has seen multiple clients getting on board.
There are some upskilling required in the changing environment and the company has been spending heavily in re-skilling and upskilling its people, he explained."More innovation, optimisation architecture becoming part of its core work
and people have to differentiate between creative and routine portions of their work."
TCS has digitised learning process over the last three years to streamline Upskilling.
"We at TCS have been an early player in creating platforms, initially in the financial services side, subsequently moved to insurance and now in life sciences and retail, so I think we are seeing good traction for our algo retail platform. In the last 4 months we have on-boarded nearly 12 retailers to that platform. So, we see that platform shift is happening.”
Subramaniam added in 2000 and TCS was a small company and size was the basis of its aspiration. Today, its aspiration is not just about size, because if it could go from less than $0.5 billion to $10 billion and then $20 billion, $100 billion is not something to get excited about, he said.
"The excitement is how deeply can we integrate ourselves into the value chain of our customers and that is where the excitement comes."He added the company has so far addressed less than 3 percent of its customer base whereas the space that it is in and the talent that it has can easily address 30 percent of them.