Tata Consultancy Services gets nearly $2 billion in revenue a year from analytics, the company’s CEO Rajesh Gopinathan told ET in an interview, making it the largest chunk of its digital revenue.
India’s largest IT company gets over 22 per cent of its overall revenue from digital — a number that will be well over $3 billion for the financial year ending March 2018. This is the first time TCS has defined the contribution of the business segment that makes up the overall digital revenue figure.
Last year, TCS appointed Dinanath Kholkar, who used to run its $2-billion business process outsourcing business, to head its analytics division. “Analytics in itself will be equal to the portfolio he (Kholkar) was running earlier. Analytics was distributed across a very wide set and once we are done bringing it together, we will have to think how we report it and all, but we run probably one of the largest analytics groups,” Gopinathan said. The IT firm’s $2.5-billion mega deal with Nielsen is in the analytics space, which has helped TCS grow that business, Gopinathan said.
Soon after Gopinathan took over last year, the company went through a reorganisation that was focused on growing its digital business. He rejigged service lines and put them under Krishnan Ramanujam, who was named president. Individual service lines were clubbed into three buckets — cognitive business operations, digital transformation services, and consulting and service integration.
Large service lines like application development and maintenance, which contributed 38% of TCS revenue last year, were broken down into smaller units such as enterprise application services, cloud applications, microservices and APIfication.
Gopinathan said the new units were still building out their teams.
“They are still building out their organisations and go-to-market and so forth but early success is strong and it really is bringing it all together… IoT and automation are quite new essentially; we are building it up from bottom up. Analytics is the larger piece,” Gopinathan said.