N Chandrasekaran
, the chairman of
Tata Consultancy Services
(
TCS
), India’s largest IT services company, has emphasized the significant impact that generative
artificial intelligence
(
GenAI
) technologies will have on nearly every industry and nation in the future. He has said this in the company’s annual report for 2024, which was released earlier this week.
According to an ET report, Chandrasekaran noted in his letter to shareholders, “Enterprises have already invested in cloud, data infrastructure and large processing power which will aid AI/ GenAI.
GenAI will not only improve productivity, but also create impact we hitherto have not seen or imagined.”
He further highlighted that businesses across the globe are prioritizing several mega trends, including
AI
, New Energy, Supply Chain, and Talent, which will necessitate substantial investments in technology across various sectors. In response to these rapid technological shifts, TCS is making significant investments and developing capabilities.
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In the fiscal year 2024 (April 2023 to March 2024), TCS consolidated its AI and Cloud expertise by establishing the AI.Cloud unit. CEO K Krithivasan also acknowledged that although the adoption of GenAI is still in its early stages, it is expected to revolutionize every industry.
Despite a slowdown in the previous fiscal year, TCS reported a 6.8% increase in revenue, reaching Rs 2.41 lakh crore, with margins at 24.6% for FY24 and an all-time high order book of $42.7 billion in total contract value (TCV). CEO K Krithivasan has expressed optimism for the company’s medium to long-term growth outlook based on these figures.
However, TCS anticipates that the uncertainty experienced throughout the previous year will continue for the next few quarters. The company’s annual report states, “Capex investments are projected to remain subdued as enterprises focus on maximizing returns from existing investments, resulting in muted spending on infrastructure, software, and services.
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TCS is also investing in upskilling its workforce in emerging technologies, with employees completing over 51 million learning hours and acquiring nearly 5 million competencies in the fiscal year. As of March 2024, TCS’ total employee headcount decreased by approximately 13,250 employees to 601,546 compared to the previous year.
Following its mandate to return to the office five days a week, TCS reported that approximately 55% of its employees are working from the office on all working days of the week.
Over the past two decades, TCS has achieved a compounded annual growth rate of over 18% in both revenue and net profits. Chairman Chandrasekaran also highlighted that TCS maintained its position as the second most valuable global IT services brand, with a valuation of $19.2 billion.
