Tata Beats Rival Infosys in Revenue, Profit Growth
In contrast, Infosys, the country's second largest outsourcer, had a more pessimistic outlook and blamed continued uncertainty in spending.
Tata Consultancy Services has reported strong revenue and profit growth in the third quarter, citing a pick-up in discretionary spending by customers.
Revenue in the quarter for India's largest outsourcer was US$2.85 billion, up by 13 percent from the same quarter last year, while net income at $643 million was up almost 22 percent, in a financial report complying with IFRS (international financial reporting standards).
In contrast, Infosys, the country's second largest outsourcer, had a more pessimistic outlook and blamed continued uncertainty in spending when it reported last week that its revenue for the quarter was $1.8 billion, up only 2.9 percent from a year ago. Net income was $431 million, up 4.9 percent from a year earlier.
Companies are responding differently to the challenging environment, said Sudin Apte, principal analyst and CEO of Offshore Insights in Pune. TCS has invested in domain expertise, account management and in new technologies like cloud and mobile, while Infosys has been slower in execution, he added.
TCS saw growth across all its key markets like North America, U.K and Europe, and across industries, said N. Chandrasekaran, CEO and managing director at a press briefing in Mumbai on Friday.
Business volumes were up 5 percent driven by the company's new service offerings, Chandrasekaran said.
TCS' revenue growth is good given the current business environment but far lower than the growth it has reported in the past, Apte said. In the third quarter of last year, for example, revenue grew by a whopping 26 percent.
The market for Indian outsourcers continues to be slow, though an improvement is expected in the next six months, Apte said.
TCS added 10,531 net new employees in the quarter, taking the total number of staff at the end of the quarter to 254,076. It had 41 new clients in the quarter.
North America accounted for 52.8 percent of revenue while Europe's share of revenue was 27 percent.
A sharp depreciation of the rupee against the U.S. dollar boosted revenue growth in rupee terms by 34 percent in the quarter from a year ago, while net profit was up 44 percent.
While the buzz around big data analysis is at a peak, there is less discussion about how to get the necessary data into the systems in the first place, which can involve the cumbersome task of setting up and maintaining a number of data processing pipelines.
Next-generation endpoint protection vendor SentinelOne has received the same certification that many traditional antivirus platforms seek, meaning it can be considered suitable for meeting certain requirements of industry and governmental regulations.
Smartphone sales increased substantially in the second quarter of 2015, but the rate of growth continued to slow, fueling concerns that the market has started to become saturated, according to a study released today by Juniper Research.
Attackers could exploit a new vulnerability in BIND, the most popular Domain Name System (DNS) server software, to disrupt the Internet for many users.