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Indian software giant Tata Consultancy Services (TCS) has logged impressive sales as well as profit growth, on the back of rising volume of work and aggressive cost management.
The company’s consolidated sales in the quarter ended 31 December 2010 rose by 4% over the previous quarter to Rs 9663 crore. This growth was higher than that of Infosys, whose sales grew by just 2.3% sequentially, and which had got affected by foreign exchange volatility.
Oil major BP handed out a major IT outsourcing contract to five global IT companies. The deal has been awaited for long and comes at a time when deal flow has slowed down for the software sector. While the deal value was not disclosed by the companies who got the award, this story by Mint has quoted a BP spokesperson attributing the deal value at $1.5bn. BP will save about $500mn by reducing its number of vendors to 5, says the report.
S Ramadorai, the current CEO and MD of Tata Consultancy Services, will step down in October 2009. His current term ends in August 2009 after which he will serve a short two month term. N Chandrasekaran, the current chief operating officer, has been named the CEO designate and will take over when Mr Ramdorai steps down.
TCS, which reported its results yesterday, had some good things to say. It has got more clients, revenues in its financial services segment grew and a weaker rupee propped up revenue growth. But the negatives were equally strong: billing rates have dropped, demand in key segments like manufacturing, telecom and hi-tech is slowing and outlook for the year appears gloomy.