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Is double-digit growth the new standard for TCS?
In the medium term, growth is definitely sustainable because it is widespread across vertical and geographical sectors. North America and BFSI – two big segments for us – revolve around; It is from there that comes optimism. There is some visibility on the next quarter and we will see how the holiday season unfolds. Occasional events or economic turbulence can prevail. Retail is still a bit weak and I do not rule out the bankruptcy of a company in this country.
Will you be able to support the growth of digital revenues?
44% growth also surprised us. We made better progress than 30% last year. We are confident to make another 30% in FY19. It will moderate as the size increases.
Does the digital offset the slowdown in traditional outsourcing?
This is not the digital versus the traditional. While we divide service lines into digital and non-digital, contracts are not, they are a composite of both. There are still inherited purchases. Digital is coming at a better price, but also presents different challenges from a delivery point of view.
Do you see other challenges?
This is not as difficult as what we need to execute. It's like a cricket match, every phase is different. We did well in the consolidation phase, the opportunity is now to use the platform to accelerate. We built a good base.
Is it a conscious decision to grow organically?
This is a justification for our ability and our strategy. A year or two ago, the general perception in the industry was that we (TCS) better acquired the abilities, talents and new customers to grow. (But) we doubled our talent. This quarter's performance is a justification of our strategy. We are now on a good trajectory for the 2019 fiscal year. Our older people have the bandwidth needed to plan the next phase of growth. An inorganic strategy is a way to speed up what we have rather than a dressing for what we do not have. We now have more time to seriously consider mineral growth as our core is in a strong position.
What are the big changes that your customers are seeing?
Customer limits are being broken. Everyone is competing on the territory of everyone. Traditionally, people thought of vertical integration, up and down the value chain. Now companies are collaborating more horizontally. This is a trend in evolution. It has a business model (changing) and has a high-tech leverage. You must open yourself as a company for effective collaboration.
What is the machine delivery model that you are marrying?
The cloud, agility and automation are three major technological themes we talked about here. Our approach to automation is traditional, it is not about what the machine can do for you, but what you can do with the machine. The initial goal of digital was the novelty of the experiment. But, the benefit comes from the way it is integrated with the company.
Similarly, for the company to benefit from automation, integration is needed. The delivery model to the first machine is therefore TCS 'approach of integrating automation into the basic principles of the provision of enterprise technology. We stay away from headlines like – Can we play chess on a machine? This does not provide value to a company, the value comes from more predictable operations. Think of the delivery to the machine as a phenomenon of the next decade, as the global network delivery model has been over the past two decades.
Will you use your IP, patents for Machine Delivery Model (MFDM)?
In fact, all the rules dating back to the Y2K days, the system integration and DNA system software that we built come into play in MFDM. While we will be talking more about Ignio next month when we celebrate his third birthday, but you will find the very old TCS DNA rooted here. It's old, that's what we've invested in the past two decades, pack in different forms and integrate it. We create a game book on how businesses can use automation in their service delivery. We remove it from TCS and make it available to our customers to consume.
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