TCS sees up to $100 mn annual revenue from BP deal
Tata Consultancy Services on Friday said it expects its recently won BP deal to fetch an annual revenue of USD 30-100 million over the next 3-5 years, and is aiming to double India revenue to USD 1 billion by 2013.
New Delhi: Tata Consultancy Services on Friday said it expects its recently won BP deal to fetch an annual revenue of USD 30-100 million over the next 3-5 years, and is aiming to double India revenue to USD 1 billion by 2013.
Two days ago TCS had announced bagging a part of the estimated USD 1.5 billion deal from British oil major BP Plc. Talking to reporters here company CEO S Ramadorai said revenue from this contract "could be anywhere between USD 30 and USD 100 million in the next 3-5 years".
Besides TCS, its peers Infosys, Wipro and foreign firms IBM and Accenture had also won a major chunk of the BP deal.
Asked as to when would revenue from the contract start flowing, he said, "I think it will start by the third quarter, in a small way but more importantly by next year."
With this deal, BP`s IT vendors managing its generic applications has come down from 40, that is expected to save the refining major significant cost.
Talking about trends, Ramadorai said going forward more such vendor consolidation would take place in global markets. Pricing though stable now will come under some pressure for specific clients in telecom and manufacturing, he added.
Ramadorai also said TCS will continue its focus on India, from where is aims to cloak USD 1 billion revenue in the next 3-4 years. "India has been one of the important markets. We are looking at whether in next three to four years we can double our revenue to a billion dollar within the Indian market."
The share of the domestic market at present is 10 percent of the total revenue.
Ramadorai said though the current economic situation has changed for better and there are isolated cases of demand emerging from specific customers..."but it is too early to call there is an uniform trend".
The telecom vertical contributes 17 percent and manufacturing 16 percent towards TCS` revenues at present.
On new recruitments he said, "We have made offers for 18,000 university graduates. Some hiring is taking place in the second quarter which is small a number but in the third, fourth and the January-March quarter we will see it scale up. So more or less, these 18,000 will become part of the TCS main team by end of this financial year."