We have a pipeline of few more large deals: TCS CEO Rajesh Gopinathan

Rajesh GopinathanTata Consultancy Services, India’s largest IT services company wrapped the year gone by with blockbuster deals from large global customers such as Nielsen, Transamerica and Marks & Spencer. As digital deals grow in scale, TCS says it is best positioned to stitch complex backend systems built for desktops with applications on smartphones and deliver it to customers. “It’s one thing to touch only frontend or backend but being able to do both together is a great thing. I think more opportunities for such deals will emerge as clients go beyond the design elements to more integrated enterprise elements of the Digital,” Rajesh Gopinathan, CEO and Managing Director of TCS said in an interview with Romita Majumdar, Raghu Krishnan and Bibhu Ranjan Mishra. Edited excerpts: In the last three months, we have seen TCS winning large deals? Do you see this momentum to continue? It’s been a good three months. The pipeline is strong enough so there is a good possibility of few more (deals) like that. It’ll be a combination of both new and legacy customers. For example, Transamerica is a brand new customer and it’s a complete end-to-end transformation engagement leveraging the TCS product suite. It’s a digital deal in many ways. It includes front-end transformation; their customer experience journey will be re-imagined. They are positioning themselves for the transformation that is in progress in the insurance space. There is also a backend transformation where we are going to re-architect all the various platforms and touch-points of customer interaction. You can’t do that in bits and pieces and it leverages every element of the stack (of products), that’s our sweet spot. It’s one thing to touch only frontend or backend but being able to do both together is a great thing. I think more opportunities for such deals will emerge as clients go beyond the design elements to more integrated enterprise elements of the Digital. The second category is also equally important. The Marks & Spencer (M&S) deal is a complete business transformation deal. What we are doing is taking a part of the business management layer and integrating that very tightly with the technology layer to transform to our agile delivery model. In agile business, ownership becomes a core part of it. While it might be a “renewal”, but the deal that is currently there is unlike anything that has been done before. It’s not five vendors put together and a large deal stitched out of it. It’s a totally different approach to technology architecture model on the client side. In the past, we were about “platforms” and now we’re really positive about “agile” as a transformative lever. Analysts say there are over $50 billion IT outsourcing deals that are coming up for renewal? Are you seeing customers moving away from traditional request for proposals (RFPs) to look at transformation contracts? There will be all kinds of deals. When existing deals mature, people will club them together and put them out as standard RFP model with various third parties advising them. That is one end of the spectrum. On the other end, we will have collaborative deals like the M&S deal or Transamerica deal which evolve significantly. These are not RFPs because the deal construct changes significantly over the course of dialogue. In a few years, these kind of deals will also mature into RFP moulds. So that kind of maturity will keep on happening. But today, you will see a full diversified spectrum of some RFP-led deals and some which are totally transformative. These type of deals require investments? We have been consistently talking about our investments in very large scale training infrastructure and sharing the metric for the same. We have trained enough people to deliver this kind of scale. It is about having the vision, appetite and capacity to engage with customers to create a transformative deal and that you have the ability to deliver on that. Deals like Rolls Royce, Transamerica etc. are validations of what we are doing. We are competing in global space where our customers are also global. These are industry defining deals. We see the BFSI sector continues to remain soft. When will we see an uptick? The BFSI industry is looking for transformation and different revenue streams. Certain parts of the industry are embracing transformation at a faster pace, especially in Europe, because they are more challenged. While other parts of the industry are still discovering these areas of transformation. BFSI is also an industry which is open to experimentation and is an early adopter of technology.

Source: Business Standard