TCS growth

TCS finds its new growth mojo in DX

by | Dec 31, 2020 | Digital Transformation, IT Services

With the cloud at the center of its focus, TCS is making strong efforts to continue winning its existing clients' trust and achieve growth.
Share to lead the transformation

After a shaky start in the FY21, due to the pandemic-induced weak business sentiments Tata Consultancy Services (TCS), top global IT services, consulting, and business solutions firm, made a solid comeback in the latter half of the year. (See: Technology trends for businesses in 2020). TCS’s strong growth momentum is the result of its persistent efforts to build transformational solutions and robust business fundamentals. 

After seeing a drop in its revenues in April this year, the country’s largest software services firm successfully navigated the operational challenge of scale, velocity, and complexity in an unbelievable manner. Its net profit in the quarter ended September 30 rose nearly 5 percent y-o-y to ₹8,433 crores. The IT major had clocked a net profit of ₹8,042 crores in the September 2019 quarter.

A couple of days back, India’s largest IT Services firm’s share price reached an all-time high of ₹2,948 on the National Stock Exchange (NSE), with a market capitalization of ₹11. 03 lakh crore. One needs to note that TCS is the only company in India to reach this milestone after Reliance.

With its deep focus on the cloud, TCS share prices have made great strides this year, growing by more than 30% since March 2020. It was only because of its confidence in its capabilities to meet the rising Dx demands that TCS embarked on a recruiting frenzy even during the pandemic. It even declared salary hikes for its employees from October this year. (See: It turned out to be a good year for Indian IT services firms)

In Q2 2020 alone, TCS announced that it signed total contract deals worth $8.6 billion.

Let’s deepen our understanding of the secret recipe that has helped the IT major generate a positive climate around its growth even during crisis times.

Readying in time for Dx opportunities

TCS’s growth has been principally marked by its rising focus on cloud and accelerated digital transformation initiatives. Over the last twelve months, India’s largest software services exporter has made substantial headways into expanding its footprints in building new and innovative cloud offerings.

As discretionary spending and virtual work environment are gaining steam, businesses move from legacy to digital IT infrastructure. These changing dynamics have resulted in TCS witnessing strong growth across banking, financial services, insurance (BFSI), healthcare, and retail verticals in Q2’21. While BFSI grew at 6.2%, Retail saw a massive 8.8% growth and Life Sciences and Healthcare at 6.9% sequentially and 17.2% on a YoY basis.

The IT services giant has a strong focus on the BFSI sector, particularly in the wake of Europe’s growing demand. Most BFSI companies in Europe are reorganizing their IT structure and focusing on digital transformation, and this provides it a significant opportunity to accelerate growth.

In a statement issued to press and analysts recently, Rajesh Gopinathan, Chief Executive Officer and Managing Director of TCS mentioned that TCS’s revenues from Europe have more than doubled in the last five years. He reflected that substantial success was the result of TCS’s enterprise agility and machine first delivery model.

This year, TCS has also set up a new European cloud center in Finland to provide end-to-end infrastructure services. In 2021, the center is expected to expand even further to support its growing customer base.

On the acquisitions front, it announced a couple of purchases recently to beef up its BFSI portfolio – Frankfurt-based Postbank Systems AG and a certain percentage of  Ireland base Pramerica Systems from insurance firm Prudential Financial Inc (PFI).

The company is also focusing extensively on its agile-based Secure Borderless Workspaces (SBW) model, which it launched recently during the lockdown. SBW is a new cloud-based operating model for businesses to seamlessly deploy virtual workspaces while taking full advantage of existing talent ecosystems and related investments.

TCS Q2’21 growth performance

Region

Growth (in %)

India

20

EMEA

8

Continental Europe

6.1

Latin America

5

UK

3.8

North America

3.6

Asia Pacific

2.9

New focus areas

Amidst the pandemic, most global enterprises have fast-tracked their transformation initiatives to beef-up their cloud-based foundations for a safe and resilient remote-work environment. There is growing momentum towards deploying AI and automation solutions for future business continuity in the remote work environment.

Given the above, TCS has been working hard to integrate accessibility and contactless aspects into its most recent digital transformation solutions portfolio. It has also invested significantly to develop deep-technology expertise and strengthening cyber resiliency services with built-in service assurance, data segregation, and compliance with various local regulatory requirements. In October this year, the company unveiled 10 new threat management centers worldwide to provide cybersecurity services to its enterprise customers.

It also introduced several internets of things (IoT) related research and innovation programs for visionary and autonomous infrastructure, personalized medicines, and smart machines.

A wide range of research and development efforts are also being undertaken to create intellectual property (IP) on the sustainability front by leveraging emerging technologies and developing solutions around them. TCS is even venturing into data masking tools, cryptography, hash control, and access rights management for taking a substantial leap and achieve better growth in 2021.

Another crucial focus area for TCS is the machine learning approach, i.e., delivering cloud-based solutions based on AI, automation, and actionable insights to improve operational efficiency.

Maintaining a strong outlook

COVID-19 has turned out to be a catalyst for business transformation. Due to the pandemic-induced lockdowns, enterprises are rapidly scaling their digital efforts to reduce their operating expense, protect their market position, and ensure customer retention. As such, TCS, which is putting automation and new age technologies at the core of its comprehensive service offerings, is in an exceptional place to continue winning the trust of its existing clients and gain new customers

In 2021, it is expected that most enterprises will continue to see an exponential rise in their technology budgets to improve their innovation capabilities and redefining their customer experience. Touchless solutions and remote monitoring solutions, in particular, will gain significant adoption.

While TCS may see a slowdown in its accounting books due to pandemic-caused delayed revenue realizations, its strong technological fundamentals and cash position will make it an essential driver of change in many global companies’ digital transformation efforts.

By leveraging differential technologies, TCS is positioning itself to become a digital transformation leader and gain a future edge. 

 

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Mahindra’s Plant a Tree campaign engages 4.5M

Mahindra’s Plant a Tree campaign engages 4.5M

Mahindra Group has said its three-month long citizens’ movement campaign #CelebrateDifferently has culminated with engagement (likes, shares and comments on the hashtag) from 4.5 million citizens. Under the Mahindra Hariyali initiative, Mahindra Group will now plant equivalent number of trees over the next four years to #RiseAgainstClimateChange.

Planting trees, including improving forest management, conservation, and regeneration, will help offset India’s annual greenhouse gas emissions, as well as providing a host of wider environmental and socio-economic benefits. As per research, more than 90% of young people agree that humans are responsible for climate change. 48.8% believe climate change is a more serious issue than war or inequality, Mahindra said in a release. Being the largest demographic group in India, millennials want to curb the effects of global warming and live a sustainable life. With millennials as the key catalyst of the initiative, #CelebrateDifferently was also conceptualized to encourage citizens to include tree plantation as part of their key celebrations. Alternately, individuals who are not able to do so, could simply like, share or comment on #CelebrateDifferently and Mahindra Hariyali committed to plant a tree on their behalf, the release added.

Sharing his thoughts on the success of the campaign, Ruzbeh Irani, President Group Communications and Ethics & Chief Brand Officer, Mahindra Group, stated, “The idea behind our citizen movement initiative was to collectively work towards giving back more than we take from our planet. Driven primarily by the millennials, our campaign has received an overwhelming response from citizens. Although campaign is concluded, we sincerely hope that #CelebrateDifferently continues to be a way of life for every citizen hereon.”

Mahindra said Citizens could continue to #CelebrateDifferently by planting with the help if NGOs such as, Grow Trees, etc. Grow Trees can help them give back to the environment by planting a tree in their name, which they can track.

As a part of the ongoing effort towards environment conservation, Mahindra Group aims to become net carbon neutral by 2040. Twenty companies of the Mahindra Group have committed to science-based targets that are in line with the decarbonization required to keep global temperature increase below 2°C.

Shah lauds Mission Million Trees, flags off EV buses

Shah lauds Mission Million Trees, flags off EV buses

Union Home Minister Amit Shah today participated in the concluding ceremony of “Mission Million trees” program organized by Ahmedabad Municipal Corporation. The Mission which started on World Environment Day on 5 June 2019 has been concluded with plantation of 10,87,000 trees in Ahmedabad city.

Speaking on the occasion, Shah urged people to keep away from using plastics bags while purchasing groceries and vegetables. Reminding the citizens of Paris climate accord, he outlined the danger of ozone layer depletion because of CO2 and CO emission worldover.

Union Home Minister planting a banyan tree on the concluding day of #MissionMillionTrees in Ahmedabad. (Pix tweeted by @AmitShah)

The Home Minister recalled that the Prime Minister Narendra Modi on resuming powers second time in 2019 created a separate ministry for Jal Shakti. He said that this step will guide the entire world in coming days on various fronts of environment conservation including water conservation, water saving, wastewater treatment, irrigation innovations, etc.

Shah also flagged off eight AC electric buses in the city and also inaugurated a battery charging station. Lauding the efforts of Ahmedabad Municipal Corporation, Shah appreciated that Ahmedabad has taken a lead on electric Mobility with countrymade buses. He also appealed to the civic authorities to keep prepared for technological needs such as establishment of efficient battery exchanging stations which should be time saving and energy efficient.

Shah had written a special letter to the chairmen/secretaries of the resident societies in his parliamentary constituency to plant at least 5 trees in their society which have more than 100 years of age such as Banyan tree, Peepal tree, etc. Expressing satisfaction at the response, the Home Minister said that he has received 3,216 positive replies in which the societies have also made arrangement for regular watering and maintenance of the trees.

Speaking on the occasion, the state Chief Minister Vijay Bhai Rupani assured the Home Minister that Gujarat will take lead in the country on enhancement of electric mobility. He emphasized that 50 electric buses have been provisioned in Ahmedabad now but in very short span of time 500 electric buses will be put to service in Ahmedabad alone. He reiterated for green, clean, environment friendly and pollution free state of Gujarat.

Vijay Rupani also informed that the electric buses are indigenously made which echoes the sentiments of Make in India. Expressing satisfaction at sufficient rainfall this monsoon, Rupani said that numerous check dams, ponds and other water conservation efforts of the state government in last 3 years are now yielding good results following this year’s good rainfall.

Bijal Patel, Mayor, Ahmedabad; Pradipsinh Jadeja, Home Minister, Government of Gujarat; RC Faldu, Agriculture Minister, Government of Gujarat; Kaushik Bhai Patel, Revenue Minister, Government of Gujarat, and other dignitaries were also present on the occasion.

Center releases Rs 47,436 crore for afforestation

Center releases Rs 47,436 crore for afforestation

In a major boost towards promoting afforestation and achieving green objectives of the country, Union Minister for Environment, Forest and Climate Change, Prakash Javadekar, today handed over Rs 47,436 crore of CAMPA funds to various states, in presence of Minister of State, MoEF&CC, Babul Supriyo. In a meeting of State Forest Ministers and Authorities held at New Delhi, the Environment Minister stated, “The State budget for forests shall remain unaffected and the fund being transferred would be in addition to State Budget and it is expected that all States will utilize this fund towards forestry activities to achieve the objectives of the Nationally-Determined Contributions (NDCs) of increasing its forest & tree cover, which will create an additional carbon sink equivalent to 2.5 to 3 billion tonnes of carbon dioxide by the year 2030.” The Environment Minister further emphasized that the CAMPA funds cannot be used for payment of salary, travelling allowances, medical expenses, etc.

Union Minister for Environment, Forest and Climate Change, Prakash Javadekar Minister of State, MoEF&CC, Babul Supriyo with representatives from states. (Pix: PIB)

Underlining the efforts of the Government towards preserving and improving the forest wealth and ecological security of the country, Javadekar said “Important activities on which the fund will be utilized will be for the Compensatory Afforestation, Catchment Area Treatment, Wildlife Management, Assisted Natural Regeneration, Forest Fire Prevention and Control Operations, Soil and Moisture Conservation Works in the forest, Improvement of Wildlife Habitat, Management of Biological Diversity and Biological Resources, Research in Forestry and Monitoring of CAMPA works etc.”

Background of CAMPA
With the initial experience of the states regarding under-utilization of the money collected towards compensatory afforestation, Supreme Court of India ordered for establishment of Compensatory Afforestation Fund and Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in 2001.

In 2006, separate bank accounts were opened in which the compensatory levies were deposited and ad hoc CAMPA was established for the management of Compensatory afforestation fund. In 2009, Supreme Court permitted release of Rs 1,000 crore every year to States/UTs for compensatory afforestation and other activities. In 2014, Supreme Court permitted release of 10% of total deposit of states in the fund from interest accrued on the deposits.

This Act has provisioned that CAMPA funds shall be kept in interest bearing non-lapsable Public Account. After detailed deliberations with CAG and Ministry of Finance and deliberations with other Stakeholders, the fund flow mechanism could be finalized and the CAF Rules were finally put in place in 2018.

After notification of CAF Rules, with approval of the Supreme Court on 28 Jan 2019, an amount of Rs 54,685 Crore from Ad-hoc CAMPA has been brought under the control of Government of India. So far 27 States/UTs have created accounts for receiving the Funds from Union Government and today funds to the tune of Rs 47,436 crore have been transferred to those States. The Fund shall be utilized as per the provisions of the CAF Act and CAF Rules.

India to restore 50 lakh ha of degraded land by 2030

India to restore 50 lakh ha of degraded land by 2030

India will be hosting the 14th Conference of Parties (COP14) to the UN Convention to Combat Desertification (UNCCD) from 2–13 September 2019 at India Expo Centre & Mart, Greater Noida. Delivering the keynote address at a Curtain Raiser Press Conference in New Delhi, Union Minister for Environment, Forest and Climate Change, Prakash Javadekar, highlighted India’s resolve to combat desertification. Desertification is a worldwide problem directly affecting 250 million people and a third of the earth’s land surface. To fight this menace, India will convert degraded land of nearly 50 lakh hectares to fertile land in next 10 years; it will implement provisions of New Delhi Declaration which is to be adopted at the end of conference and a Centre for Excellence will be established at Dehradun,” said Javadekar.

The Environment Minister also expressed India’s continued commitment to stay on track on a sustainable path to land use and land management. “It is our collective responsibility to do our duty towards protecting the environment and ensuring that there is no harmful impact on it,” said Javadekar. Elaborating further on India’s key role as the President of UNCCD COP for the next two years, Javadekar said “It is the common resolve of the World to combat desertification and India will lead from the front and move the world in a positive direction, taking into cognizance the support of other countries”.

Delegates from 196 countries comprising of scientists and representatives of national and local governments, global business leaders, NGOs, gender-based organizations, youth groups, journalists, and faith and community groups will present and share their expertise and give an overview to achieve their goals at the 12-day conference .

The Convention entered into force in December 1996. It is one of the three Rio Conventions along with United Nations Framework Convention on Climate Change (UNFCCC) and Convention on Biological Diversity (CBD). India became a signatory to UNCCD on 14 October 1994 and ratified it on 17 December 1996.

The main objective of the convention is to combat desertification and mitigate the effects of drought in countries experiencing serious drought and/or desertification, involving long-term integrated strategies that focus simultaneously, in affected areas, on improved productivity of land, and the rehabilitation, conservation and sustainable management of land and water resources, leading to improved living conditions, in particular at the community level. The Convention’s 197 parties work together to improve the living conditions for people in drylands, to maintain and restore land and soil productivity, and to mitigate the effects of drought. The UNCCD is particularly committed to a bottom-up approach, encouraging the participation of local people in combating desertification and land degradation.

Source: PIB. 

Modi talks Biodiversity, Oceans, Climate at G7

Modi talks Biodiversity, Oceans, Climate at G7

At the G7 Summit in Biarritz, Prime Minister Narendra Modi has addressed the session on ‘Biodiversity, Oceans, Climate.’ He has highlighted India’s large scale efforts towards eliminating single use plastic, conserving water, harnessing solar energy and, protecting flora and fauna for a sustainable future.

Big policy boost coming for ocean energy sector

Big policy boost coming for ocean energy sector

In a decision that would give boost to the ocean energy in India, Union Minister of State for Power and New & Renewable Energy (IC) and Skill Development & Entrepreneurship, RK Singh has approved a proposal to declare ocean energy as renewable energy.

Accordingly, the Ministry of New and Renewable Energy has clarified to all the stakeholders that energy produced using various forms of ocean energy such as tidal, wave, ocean thermal energy conversion etc. shall be considered as Renewable Energy and shall be eligible for meeting the non-solar Renewable Purchase Obligations (RPO).

The Ministry notes that oceans cover 70 percent of the earth’s surface and represent an enormous amount of energy in the form of wave, tidal, marine current and thermal gradient. A variety of different technologies are currently under development throughout the world to harness this energy in all its forms. Deployment is currently limited but the sector has the potential to grow, fueling economic growth, reduction of carbon footprint and creating jobs not only along the coasts but also inland along its supply chains.

As Government of India steps up its effort to reach the objectives to contemplate its Renewable Energy and climate change objectives post 2022, it is opportune to explore all possible avenues to stimulate innovation, create economic growth and new jobs as well as to reduce our carbon footprint. India has a long coastline with the estuaries and gulfs. MNRE looks over the horizon at development of new technology and considers the various options available to support its deployment. Most types of technologies are currently at pre-R&D / demonstration stage or the initial stage of commercialization. Basic R&D is being looked after by the Ministry of Earth Sciences (example: National Institute of Ocean Technology, Chennai). MNRE intends to support demonstration projects of proven technologies and as approved by expert committee constituted by MNRE.

Potential
Total identified potential of Tidal Energy is about 12455 MW, with potential locations identified at Khambat & Kutch regions, and large backwaters, where barrage technology could be used.
The total theoretical potential of wave energy in India along the country’s coast is estimated to be about 40,000 MW – these are preliminary estimates. This energy is however less intensive than what is available in more northern and southern latitudes.

OTEC has a theoretical potential of 180,000 MW in India subject to suitable technological evolution.

Technology
Although currently under-utilised, Ocean energy is mostly exploited by just a few technologies: Wave, Tidal, Current Energy and Ocean Thermal Energy.

Tidal Energy: The tidal cycle occurs every 12 hours due to the gravitational force of the moon. The difference in water height from low tide and high tide is potential energy. Similar to traditional hydropower generated from dams, tidal water can be captured in a barrage across an estuary during high tide and forced through a hydro-turbine during low tide. The capital cost for tidal energy power plants is very high due to high civil construction and high power purchase tariff. To capture sufficient power from the tidal energy potential, the height of high tide must be at least five meters (16 feet) greater than low tide. The Gulf of Cambay and the Gulf of Kutch in Gujarat on the west coast have the locations in the country where potential exists.

Wave Energy: Wave energy is generated by the movement of a device either floating on the surface of the ocean or moored to the ocean floor. Many different techniques for converting wave energy to electric power have been studied. Wave conversion devices that float on the surface have joints hinged together that bend with the waves. This kinetic energy pumps fluid through turbines and creates electric power. Stationary wave energy conversion devices use pressure fluctuations produced in long tubes from the waves swelling up and down. This bobbing motion drives a turbine when critical pressure is reached. Other stationary platforms capture water from waves on their platforms. This water is allowed to runoff through narrow pipes that flow through a typical hydraulic turbine.

Current Energy: Marine current is ocean water moving in one direction. This ocean current is known as the Gulf Stream. Tides also create currents that flow in two directions. Kinetic energy can be captured from the Gulf Stream and other tidal currents with submerged turbines that are very similar in appearance to miniature wind turbines. Similar to wind turbines, the movement of the marine current moves the rotor blades to generate electric power.

Ocean Thermal Energy Conversion (OTEC): Ocean thermal energy conversion, or OTEC, uses ocean temperature differences from the surface to depths lower than 1,000 meters, to extract energy. A temperature difference of only 20°C can yield usable energy. Research focuses on two types of OTEC technologies to extract thermal energy and convert it to electric power: closed cycle and open cycle. In the closed cycle method, a working fluid, such as ammonia, is pumped through a heat exchanger and vaporized. This vaporized steam runs a turbine. The cold water found at the depths of the ocean condenses the vapor back to a fluid where it returns to the heat exchanger. In the open cycle system, the warm surface water is pressurized in a vacuum chamber and converted to steam to run the turbine. The steam is then condensed using cold ocean water from lower depths.

Technology Objectives
The objective of the technology program is to accelerate and enhance support for the resource assessment and deployment of ocean energy in the country and to harness it for power generation and to overcome the barriers. The technology program is open to public and private sectors to carry out projects in India. Industry lead R&D proposals are invited from stakeholders, for solving problems in Indian conditions. Basic R&D is being looked after by the Ministry of Earth Sciences (example: National Institute of Ocean Technology, Chennai).
All the stakeholders desirous of utilizing Ocean Energy are being invited by MNRE for demonstration projects of proven technologies under Research, Design, Development and Demonstration (RDD&D) program/policy of the Ministry, in force at the time.

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