One function that may be able to drive new business is the consulting arm. With its long-term investment in the Global Consulting Practice, there is a doubling in TCSs revenue contributions from consulting operations. This increase is off the back of smaller, tactical deal contributions inside existing accounts, but it does not appear to be driving business into new accounts yet.
TCS will need to start focusing on and investing robustly in the new business development area very soon if it wishes to gain benefit from the green shoots that are appearing.
Different name, same approach
In the most turbulent market conditions in the companys history, TCS has also replaced its CEO and managing director with chief operating officer N. Chandrasekaran. This has the potential to drive instability and raise concerns amongst investors and customers, but given the strong Tata culture and long-term goals within the division there is nothing to make us believe that the plan and vision will shift too dramatically.
However, with the weakness in the new business arena, the new CEOs focus may need to be more vigorous than had originally been envisaged.
Jens Butler is principal analyst with Ovum.
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