Global crises open new avenues for growth: Chandrasekaran at TCS AGM

N Chandrasekaran, Chairman TCS and Tata Sons believes that Digital India Act is a necessity in today’s era.

“The Digital India Act is a necessity because so much has changed over the last couple of decades since the original IT act was put in place. I’m glad that the government is engaged and developing a participative approach to develop the Digital Act, which is a very important thing, especially the new issues, like the privacy and other aspects that will come into this act,” he said while answering shareholders at the 27th Annual General Meeting (AGM) of TCS.

Minister of State for Electronics and IT a few months back had commented that the government will shortly roll out the Digital India Act, which will be renewed policy for the digital ecosystem and cyberspace in the country

Chandrasekaran also stated that the world economic situation that was looking promising at the start of the year has quickly changed, the Russia-Ukraine crisis, supply chain shocks from higher oil prices, gas and semiconductor shortages are pointing towards a globally slow growth and high inflation environment.

“The global GDP is expected to grow at a slower pace than anticipated, in this context, India becomes a very important market. India will be in all likelihood the fastest growing major economy at an estimated 7.8%,” he said while addressing the 27th Annual General Meeting (AGM) of TCS.

However, the unprecedented crisis has also created new avenues for growth and trends. Chandrasekaran shared four trends that have emerged from these global conditions.

“First trend is digital transition: a world that is totally determined & accelerated by AI, ML & Data analytic. Second is an energy transition which is an irreversible move towards a green economy. Third is a supply chain transition where the supply chain will get rebalanced for resilience and finally a talent transition, ushering in the coming age of the talent cloud, a diverse inclusive & a global talent pool that can be accessed across the globe,” he added.

He also added that in future every business will be a data and AI driven business and companies that embrace this will leap forward. Chandrasekaran also stated that TCS is already working with customers to embark them on the four trends he mentioned.

“In all the four dimensions which the world is going to witness, a digital transition, so suitability transition, the supply chain transition, and the talent transition. Your company is extremely well positioned to help the customers globally to successfully proceed towards the new economy. As we look forward to the future there are excellent opportunities ahead of us,” he added.

For FY22 TCS crossed the $25 billion revenue mark and also reported the highest incremental revenue addition at $3.5 billion. “Our revenue growth has been steadily increasing over the years with a CAGR of more than 1 per cent over the last five years,” added Rajesh Gopinathan.

The company also said that Rs 38,010 crore were shared with shareholders in the form of dividend, and buyback.

The company also stated that for FY22 the related party transactions—between TCS, Tata Sons and its associates—was about Rs 1,551 crore. “Mostly these transactions are related to either the company providing IT services or the company engaging with the group companies to be able to leverage the joint procurement volume so that the procurement can be done for the common needs of TCS and the other companies,” he explained in the AGM.

On getting employees back to office, he said: “While it is my personal preference to encourage employees to come back to work, and I would like to see a significant number of employees back in the office, the company is already working with employees. So, there will be a hybrid work environment. We expect most employees to come back and return to the offices. So, in the new paradigm, the cost structure will have to be suitably adjusted.”

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor