Firms increasingly outsourcing, including core business - TCS

- Tuesday, August 30, 2011

Firms increasingly outsourcing, including core business - TCS

The Latin America unit of Indian IT services firm Tata Consultancy Services (TCS) is seeing companies in the region increasingly outsourcing more areas of business, even core areas, TCS Latin America COO Ankur Prakash told BNamericas.

"Initially companies were thinking of outsourcing whatever is not core to them; now we're seeing a step towards seeking synergies with companies that have experience in improving standards and best practices - even if it's related to core business," he said.

"So it's now going much beyond the non-core IT services. It's going towards, 'How can I partner and increase my sales and my profitability with that?'"

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TCS is seeing opportunities "in almost all of the industry sectors - manufacturing, banking, insurance, telecommunications," he added. "These are projects which are coming up that didn't come up in the last 2-3 years, so we're getting started with these projects. They want to become more competitive, more efficient - this all bodes very well for us."

While a question mark still lies over the future of the world economy, companies cannot put their businesses on hold, Prakash said.

"With or without an economic slowdown, you have to run a business with the right fundamentals, focusing on growth, market share, customers - that will never change.... I can definitely see there are opportunities in the market. Customers aren't reducing projects."

Increasing efficiency puts a company in a position to improve customer services and the bottom line, while also giving companies a leg up on competition, he noted. "That's where players like us take on an important role in introducing global standards and practices and introducing efficiency into the system - not only IT processes, but business processes in general."

TCS has continued to focus on a shortlist of high-priority clients as part of its five-year strategic plan for Latin America to reach revenues of US$1bn, Prakash said, adding that the company will look to triple its employees in the region by 2015.

TCS's global revenues for fiscal 1Q12, ended June 30, were US$2.41bn, up 34.4% year-on-year. Latin America represents about 4% of worldwide revenues.