TCS Staying Relevant to its Customers through Digital Five Forces

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TCS Staying Relevant to its Customers through Digital Five Forces

Knowledge@Wharton (http://knowledge.wharton.upenn.edu/)

In an interview with Knowledge@Wharton, N Chandra, CEO and MD, TCS, talks about how the 'Digital Five Forces' (mobility, big data, social media, cloud computing and robotics) are changing the way TCS operates, and how the company is staying relevant to its customers in 'a time of exponential change'.

Find excerpts from the interview below:

Knowledge@Wharton: Why is the market so enamored of TCS?

Natarajan Chandrasekaran: I am not comfortable with such epithets and neither can I speak for the investors. I believe that long-term investors look for companies that create sustained value for shareholders, the ecosystem and the community. Our revenue to equity multiples are similar to other growth companies in the broader technology industry. At TCS, our focus is on staying close to our customers, understanding their business challenges, helping to address them and making the investments needed to remain relevant to our customers.

Knowledge@Wharton: In a letter to your employees, you have said: “Looking forward, we have a historic opportunity to grow and lead our industry to greater heights.” You are, of course, not talking about just India, where you are the leader by far, but also about the global market. In 2013, TCS became the world’s second most valuable IT services company behind IBM ($160 billion). Revenue-wise you have moved into the top 10. So what are your global plans?

Chandra: We are living at a time of exponential change – all of it driven by a clutch of digital technologies. Cloud, mobile, social, big data and analytics, and robotics are fundamentally forcing us to re-imagine all aspects of our lives. We are moving rapidly to a state where the default is digital.

We began investing in digital technologies and their application in enterprises at an early stage, and I believe today that TCS can play a leading role in this massive transformation or re-imagination that our customers are going through.

Unlike technology revolutions in earlier decades like mainframes, enterprise computing or the Internet, when our scale and ability to invest were limited, this time we are equipped, invested and well prepared. We also have the global scale, customer relationships and the partnership ecosystem to play a dominant role in this ongoing revolution across our key markets like North America, the U.K. and Europe. In this context, we want to remain very relevant to our customers and their business, and that will be the bedrock upon which our growth plans will be built.

In specific key markets like France and Japan, where we have not had a major impact so far, we are making acquisitions to strengthen our presence and add more local talent into our mix. We believe that these markets, along with emerging or growth markets like India, Latin America and ASEAN, will become strong growth drivers as well.

Click here to read the complete interview.