Top 10 Best Performing IT Service Providers — Winner Tata Consultancy Services

This year the fourth largest IT-services company in the world jumps astoundingly — from the seventh position to the top position — and comes out as a best performing IT-services provider
by Juhi Bhambal Global Services

TCS, which aspires to top 10 status among the world’s leading service providers, is on the verge of reaching its goal. It is already the fourth largest IT-services company in the world terms of market cap, fifth largest in terms of profits, sixth largest in terms of employees and 12th largest in terms of revenue, according to company sources.

Its focus on large deals and entering the non-U.S. market is likely to take this Indian company further still. While large deals have come to be considered relatively less profitable because of lower margins, TCS derives strategic advantage out of them. It uses its IT-services offerings in large deals to cross sell its other offerings — consulting, BPO, engineering and infrastructure.

On the non-U.S. front, TCS is establishing its presence in Europe, with 2005’s $244 million ABN Amro deal being one of its biggest wins on the Continent. Realizing that Europe is not one, but several, markets, TCS follows a strong localization strategy there. TCS is also one of the few IT services companies that is actively working to address Japan — the second largest IT market by spend after the U.S. It has set up a center dedicated in the Indian city of Calcutta to servicing Japanese customers. The center is already servicing 12 Japanese clients. The company’s latest non-U.S. win has come from Banco Pichincha, Ecuador’s largest private bank. This is a $140 million deal for five years.


Top 10
1.
Tata Consultancy Services
2.
Cognizant Technology Solutions
3.
Infosys Technologies
4.
HCL Technologies
5.
Neoris
6.
Patni Computer Systems
7.
MindTree Consulting
8.
Politec
9.
Satyam Computer Services
10.
Wipro Technologies

S T A T S
CEO: S. Ramadorai
Skill set: Applications development, business-process transformation
Verticals: Banking, financial services, manufacturing, telecom
Customers: ABN Amro, American Express, Verizon Data Services
Delivery centers: India, China, U.S., U.K., South Africa, Latin America, Europe, Japan
Employees: 83,500
Revenue: $3 billion (est. 2006)
Year founded: 1968
Website: www.tcs.com