Wednesday 16th April, 2014

According to a report in the FT today,  Tata Consultancy Services have delivered an upbeat assessment of rising global demand for India’s IT outsourcing sector year, as the nation's largest software company by revenues unveiled fourth-quarter results largely in line with expectations.

The Mumbai-based group exports almost all of its services to larger companies in Europe and America, where an economic recovery helped it report full-year net profits up 38 per cent at Rs19.1bn ($3.2bn).

Shares in TCS jumped 45 per cent over the past year on a string of impressive quarterly results, but chief executive Natarajan Chandrasekaran said he expected an even stronger performance over the coming 12 months, led by higher sales to clients in the banking, retail and life sciences sectors.

But Sandeep Muthangi, an IT analyst at brokerage India Infoline, said TCS’s continued strong performance could now be checked by rising competition from local rivals.

“Next year will be better for them, but their recent growth has come as a number of competitors, including Infosys and Wipro, have been struggling with internal issues,” he said.