Tuesday, April 17, 2007

Tata posts its revenues

TCS’ total annual income has broken the $4 billion ceiling for the first time, proving India as a key focus for the world’s biggest business strategies.

When Wipro releases its figures on Friday, the final act of the 2006 Indian IT success story will begin. With more than $3 billion in combined profit, the question that follows has to be where the triumvirate will decide to invest to continue its rate of growth.

Growth through acquisition of western companies by Indian firms, particularly those with public sector contracts, high-end consultancies, software products and infrastructure management such as Northgate, Misys and Xansa is another key area for business.

The success of these firms shows that India is by far the fiercest ‘Asian tiger’. It will only be a matter of time before Wipro, TCS or Infosys start on the acquisition trail. With such a strong financial footing, they must be plotting to get their claws into overseas investment.

Both Infosys and TCS have reported growth of over 40 per cent – in revenue and profit – despite the strengthening of the rupee playing against them. The results speak for themselves.

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