Tata Consultancy Companies: TCS says its platforms and merchandise enterprise is value about $three billion
Tata Consultancy Services’ platform and product (P&P) business is valued at about $ 3 billion and accounts for about 12-15% of total revenue, a top executive told ET.
The P&P business is not a separate entity and continues to function across different industries, but is quickly becoming a major differentiator for India’s largest IT service provider by revenue, said Chief Operating Officer N Ganapathy Subramaniam.
“In the past 12 months, over 95% of deal wins have been cloud-based, SaaS-based platforms. It’s moving from a one-time license fee to a SaaS-based consumption model, ”said Subramaniam.
SaaS stands for software as a service.
This shift, stressed analysts, helps
win more deals for its platforms like BaNCS, Cognix and Hobs.
“The product and platforms continue to perform well and have won additional SaaS deals this quarter. Cognix won 6 big deals, Quartz Blockchain had 2 new profits and one go-live, the TCS HOBS product suite for communications service providers 4 new profits and 6 go-live and the TCS Mastercraft suite 22 new profits in the second quarter of the financial year 22 ” said Prabhudhas Lilladher analyst Aniket Pande in a note.
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Subramaniam said all products were in different stages of maturity, with some like BaNCS having evolved over the years in line with changing market demands.
“All of this has given us the opportunity to develop knowledge of the industry, generate a lot of patents … it’s a big differentiator for us,” he added.
The platforms help the company drive business and operating model transformation for customers in many markets, Subramaniam said.
TCS recently installed its HOBS telecommunications platform for a Malaysian telecommunications company, which is helping them bundle products and sell them on the fly, which would have taken six months.
The next step, he said, would be a disciplined approach to scaling the business with a focus only on SaaS.
TCS will focus on building a system where the system itself generates everything, as opposed to the way the company currently operates which requires multiple permits, he added.
