In a letter to shareholders, N Chandrasekaran, chairman of Tata Sons and Tata Consultancy Services (TCS), stated that the business has prospered despite the recent global uncertainties that enveloped the IT sector. In a global environment with uncertainty, TCS performed well in the past year.
TCS produced growth of 17.6% in FY23 while maintaining an operating margin of 24.1%, which is the highest in the sector. With $34.1 billion in orders, we ended the year. This, together with the robust pipeline replenishment, gives us favorable medium-term visibility.
TCS in AI Technology
In the letter, Chandrasekaran discussed how TCS, a significant player in Indian technology, is putting money into AI to stay competitive. “The world is undergoing numerous significant changes that necessitate significant investments in innovation and technology and offer the IT sector a fantastic opportunity for growth. The transition to sustainable energy is accelerating globally.
Businesses are still implementing predictive AI and moving forward with data collection, cloud computing, and the Internet of Things (IoT). Utilizing generative AI would necessitate more technological advancements and funding. According to the letter, TCS is making major investments in constructing AI capabilities, including AI-powered platforms and solutions.
- Tata Sons and TCS thrive despite global uncertainties.
- TCS invests in AI for competitiveness amid global shifts and clean energy.
- Businesses adopt predictive AI, IoT, and AI-powered platforms.
In the short to medium term, increasing attention and prospective investments are being made in technologies like 5G, IoT, generative AI, virtual reality/metaverse, digital twin, and more, according to Chandrasekaran.
Additionally, he thanked departing CEO Rajesh Gopinathan, who will continue to work for the organization through September 16th, for ensuring a smooth transition for K Krithivasan, who will take over the reins on June 1.
It is with great appreciation that I extend my best wishes to Rajesh Gopinathan for the work he has done throughout his time as CEO and MD. I would also like to take this opportunity to wish K Krithivasan all the best in his new position as TCS’s CEO and MD.
