The Hindu Business Line : GE share in TCS revenue falls

REVENUES from General Electric, TCS's single largest customer, have fallen to 15.9 per cent of total revenues during the second quarter of the current fiscal, from 17.1 per cent of revenues during the first quarter.

Revenues from this client have been falling from a peak of 20 per cent of total revenues by around one percentage point every quarter, said Mr S Mahalingam, Executive Vice-President and Chief Financial Officer of TCS, at a news conference here today. The company's top 10 clients contributed 33.6 per cent to revenues in Q2 (as compared to 35.2 per cent in Q1) while the top five clients contributed 21.2 per cent of revenues (22.2 per cent in Q1).

During the quarter, project execution moved offshore marginally, with delivery from offshore locations accounting for 37.5 per cent of the whole, as compared to 36.9 per cent during the previous consecutive quarter.

Three of its 52 new clients added during the quarter under consideration were for Remote Infrastructure management, said a news release from the company. The company's BPO initiative added six new clients. Three new clients were added for process consulting. All the company's geography segments achieved double digit growth, said officials. The US accounts for 59.7 per cent of total revenues, Europe for 22.8 per cent and India for 11.7 per cent.

The company's global development centres in Uruguay, Brazil, Hungary and China have at least five clients each, and serve 35 clients in all.

The other distinctive feature during the quarter was the addition of a large Australian customer for a customer management solution for their 3G rollout, and the going live of TCS' flagship banking product Quartz for a bank in Latin America.

Employee attrition over the last 12 months was 7.9 per cent, among the lowest for software companies in TCS' category, said officials. Including its subsidiaries, TCS has a total of 40,948 employees currently.

It is not true that TCS is considering merging CMC, its acquisition from Government of India, said Mr. S Ramadorai, in response to a question. CMC has its own agenda, he said. CMC is in the low margin equipment business and it was going to depend less and less on this as it gets into value added services, he said.