TCS To Take ION Global After Test-marketing Success In Some Markets Abroad

IT services major Tata Consultancy Services (TCS), said that it is planning to take iON, which provides technology on IT-as-a-services model for small and medium enterprises and educational sector, to international markets.

Rajesh Gopinathan, CEO and MD, TCS said that iON, which has a huge market share in India, aspires to go international. “The team has been testing markets and they have had success in UK, Ireland and even in Japan. They are now testing the APAC region. Significant business models will come out only when we find what the business opportunities are in different markets. We will have to wait and see how that pans out,” he added.

The India business of the company which dipped by almost 14 per cent for the quarter, primarily due to the impact of second wave of Covid-19, has impacted the iON business too.

“Much of the work we do in India is government projects, which has variable pricing. iON business caters to SME and education assessment work. They are all on variable pricing basis. Some of the exams have been postponed, so it is question of deferment. Revenues are not lost, whenever they will get back revenue will be back. Based on the indications that we see in the last 2 weeks of this quarter, most of these projects will get executed in Q2 or the early part of Q3,” said N Ganapathy Subramaniam, COO and executive director, TCS.

While the company’s industry verticals collectively grew 4.1 per cent sequentially in constant currency, headwinds in regional markets and others segment brought down overall revenue growth to 2.4 per cent.

Barring the India geography, the TCS management said that digital transformation with cloud adoption is accelerating. Rather the company’s flagship product for financial services BaNCS not only won five new deals and five go-lives, almost 50 per cent of deals using BaNCS are in software-as-a-services (SaaS) model. Rather in the Q1, TCS signed one of its largest SaaS deal for TCS BaNCS, with one of the largest financial groups in Finland for their retail consumer lending business.

“We talked about the opportunity in cloud and transformation and how everybody is looking to adopt cloud in an accelerated pace. We also spoke about horizon led opportunities. Here is an example, the largest SaaS deal is a horizon 2 opportunity. We believe more and more SaaS deal coming in, will bring more non-linearity into the business,” added Subramaniam.

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