India's biggest technology company by market cap, Tata Consultancy Services (TCS) has witnessed a massive jump in its business across Europe with more companies adopting more new technologies following the Covid-19 pandemic outbreak.
According to the recent company data, Europe is among the fastest-growing business regions for the TCS. About a third of the company's annual revenues come from the region which has now swelled to $22.17 billion. Also during the last full year, continental Europe was the only geography that showed growth for TCS.
In a recent interview, TCS Europe head Sapthagiri Chapalapalli said that in certain technologies where adoptions were slow, such as collaboration technologies or cloud, the openness has increased and therefore there is an acceleration. “When things open up, you also need to be cautious…cybersecurity for example has become a very important topic because when you want to open up you need to do it in a secure way.”
TCS, India's largest IT exporter, operates in 19 countries across Europe, catering to dozens of big clients such as Deutsche Bank AG, SAP AG, ASML Holding NV, Infineon Technologies AG, and ABB. Many IT service providers are seeing growth in the region as many European companies upgrade their computer technologies, coupled with a shortage of people with the required digital skills, partly because of an ageing population.
“The businesses are going to fundamentally change in what they do and technology is going to sit right at the heart of that, and therefore the opportunity is huge,” Chapalapalli said. He expects TCS to operate in newer technologies like 5G which could be applied in industries like manufacturing and automotive.