• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Chennai, Oct. 18 Tata Consultancy Services (TCS) plans to focus on domestic contracts in the wake of rupee appreciation. The company is gearing up for a ‘Rs 35-a dollar’ exchange rate scenario in the future and one of the key strategies to deal with it is to bag more local business, said Mr N. Chandrasekaran, Executive Director and Chief Operating Officer.

Revenue growth in domestic contracts has been flat over the last two quarters and industry-wide margins on domestic contracts are 5-10 per cent lower than overseas contracts. Also, domestic contracts are largely project-based with no annuity revenue component (unlike overseas where the majority of contracts are annuity based) making it difficult to predict revenues.

However, as domestic companies increase their IT spends, particularly industries such as banking and financial services, government, telecom and retail, the company expects revenues to grow from this segment. Currently, domestic business contributes 8.2 per cent to revenues.

Other key measures taken to improve productivity include focusing on providing more of solutions than services, building up a repository of software components (code and modules) that can be re-used in projects and opting for a ‘platform BPO’ business model, Mr Chandrasekaran said at a press conference here.A ‘platform BPO’ refers to a model where TCS would charge clients for the intellectual property it would use to build and deploy platforms that would in turn facilitate carrying out varied services.

More Stories on : Software | Forex | Tata Consultancy Services Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Quantum to invest $10 m in R&D centre

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line