Analysts may not have been thrilled by TCS’s recent performance which narrowly missed estimates. However, those that do not live or die according to stock market figures would be pretty pleased with the way the Indian IT giant performed in the third quarter of fiscal 2019. For one, TCS posted double digit year-over-year growth of 12.1 percent for the first time in several quarters. It also recorded a staggering 24 percent rise in quarterly profit and snagged an impressive $5.9 billion worth of new deals in the quarter. 30 percent of its business is in the digital realm, which grew at a 52 percent clip from the year prior, and is clearly the driving force in the company’s growth trajectory. TCS’s rival Infosys didn’t do too bad either. Its revenues of $2.99 billion increased by 8.9 percent compared to last year. The company also inked 14 large deals worth over $1.57 billion, and its digital revenues account for 31.5 percent of its business which grew at a 33 percent rate year-over-year. For an industry that was railroaded both by Trump’s H-1B onslaught and the commoditisation of its bread and butter — infrastructure maintenance application development business — these are pretty impressive numbers. The question is, how long will this ride last? Are there any monsters lurking in 2019 that could upend this against-all-odds performance? Also: While India’s IT managers get the axe, old world coders get a lifeline Even the most sanguine of seers will see a pretty rocky road… [Read full story]
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