TCS edges past US-based DXC to become world's 3rd largest IT firm
Tata Consultancy Services (TCS), which had reported better-than-expected earnings for the quarter ended March, added another feather to its cap in FY19. It is now the world's third largest software services provider in terms of revenue, following IBM and Accenture. This rank was previously held by US-based DXC Technology, which announced its Q4 figures yesterday. Significantly, this is the first change in the IT outsourcing industry's totem pole in two years.
Comparing the financial results of TCS and DXC for the last fiscal, you see that the Mumbai-based firm, already India's largest software exporter, boasts slightly better figures and, hence, has bagged the new tag. In April, TCS had reported dollar revenue of $20.91 billion for FY19, a jump of 9.6% year-on-year. According to the company, the incremental revenue stood at $2.2 billion in constant currency (CC) terms. In comparison, DCX reported revenue of $20.75 billion for the fiscal, down 4.5% year-on-year.
TCS, in fact, is way ahead in terms of net income for FY19 - $4.5 billion versus $1.26 billion for DCX. It is also far more profitable than its peers, with its FY19 operating margin pegged at close to 26% against 15.8% for DXC and 13-14% for Accenture, CNBC TV18 reported.
The Tata Group's flagship company continues to remain bullish about growth after posting its "strongest revenue growth" in the last 15 quarters. TCS had reported a 18.5 per cent rise in March quarter revenues to Rs 38,010 crore, from Rs 32,075 crore in the corresponding period in FY18. The firm's Chief Operating Officer N Ganapathy Subramaniam told PTI last month that TCS continued to remain "open and hungry for acquisitions" and was scouting for assets that could bring in intellectual property and widen market reach to further accelerate growth. But TCS will now have to double its revenue to fight it out with Accenture over the global #2 rank.