TCS planning reusable software platforms

TCS is aiming to launch several reusable software packages as part of a push to adapt to the changing business and technology landscape

MUMBAI: Tata Consultancy Services is aiming to launch several reusable software packagesas part of a push to adapt to the changing business and technology landscape, chief executive & managing director Natarajan Chandrasekaran said. 

India's largest software company is readying reusable software platforms, which can be customised, for areas such as telecommunication , financial services and data analytics, Chandrasekaran said in an interview. 

"There are multiple things we are trying and everything we are not announcing because we have to try (it out) first. It's not just an intellectual capability to create a platform, it is market readiness as well," he said on Friday, a day after the company announced that its third-quarter revenue grew by 3%, slightly below analysts' expectations. 

The company already has software platforms in human resources, finance, analytics and procurement. The Mumbai-based company, which has been setting the pace for India's software sector, has said it will grow faster than the 12-14 % projection for the industry. 

With expected fiscal 2014 revenue of over $12 billion (Rs 75,000 crore), TCS is about one-third larger than its nearest Indian competitor Infosys. Information technology companies are turning to software platforms that can be tailored to suit customers' needs as a way of improving revenue productivity. 

But building these platforms requires significant initial investment and success is not guaranteed. Chandrasekaran, 50, was of the view that firms will not want to move core processes to platforms, but non-core processes will do so. 

iON may go global 

"There may be a stage where core processes will find a different model but that is a long way away," he said. iON, a TCS initiative to offer no-frills technology solutions to small businesses in a pay-asyou-go model, is being considered for a global launch, he said. 

The company is debating whether to take it first to emerging markets or developed markets, as well the manner in which it will be sold. 

"We are not going the whole hog; we will start with targeting one or two companies. We will go to specific countries," he said. By far and away the market leader in India, TCS is starting to draw comparisons with its global rivals, particularly Accenture. 

In a report last year, JPMorgan drew attention to the incremental revenue added byAccenture and TCS, pointing out that the latter was growing at a much faster pace. Although at $28.6 billion, Accenture is more than twice the size of TCS, it added only some $700 million in revenue in fiscal 2013 which ended in August. 

TCS ended fiscal 2013 in March with incremental revenue of more than $1.4 billion. Chandrasekaran, however, declined to be drawn into comparisons. "I wouldn't want to comment I think I would rather be focused on what we need to do." 

On the ongoing debate in the US about changes to that country's immigration system , he said it is unlikely to have a debilitating impact. Indian software firms individually as well as their grouping Nasscom have stepped up interactions with US. 

"I don't think there is a situation that will come which is a complete risk to the business model, because if that is the case, it will also affect customers.
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