M&S to outsource "over half" of IT to TCS

M&S to outsource

The IT firm declared rise in net profit of 1.3% quarter on quarter (QoQ) at RS 6,531 crore for the quarter ended on December 2017. However, on a sequential basis, the net profits grew by 1.31 per cent from Rs 6,460 crore in the September quarter following better performance in sectors such as manufacturing, retail, communication, media and technology.

The Mumbai-headquartered company won its first 50 million plus deal for digital services. Core supplier services will transfer directly to TCS.

In a regulatory filing on the BSE, it said total income for the quarter under review (Q3), however grew 2.7 per cent annually to Rs 31,774 crore from Rs 30,927 crore in the like period year ago.

The company's revenues rose marginally, by 1.2 per cent, to ₹30,904 crore (₹29,735 crore).

Gopinath said smaller industries like energy, utilities and travel and hospitality grew at a "scorching pace" with a 20-25% YoY growth.

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The brokerage house said that Tier-1 IT companies are likely to report constant currency (CC) growth of 1-2 percent as weak seasonality kicks in the quarter accompanied by the transformation that the IT industry is going through. The majority of these charges are expected to be recorded over the first three years of the agreement, with approximately United States dollars 100 million of transition and conversion charges reflected in the first half of 2018.

The retailer has announced a new "technology transformation plan" and struck an agreement with Indian IT giant Tata Consulting Service, which will become the retailer's main technology partner.

This was the company's strongest volume growth for the December quarter in three years. "TCS was carefully selected because of its significant, ongoing investments in technology and its expertise in the insurance and annuity industry", said Mark Mullin, Transamerica President & Chief Executive Officer. The company generated consolidated revenues of United States $17.58 billion for year ended March 31, 2017 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. "We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive USA capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS".

Apart from this, TCS also informed that, the directors have declared a third interim dividen of Rs 7 per equity share of Rs 1 each of the company, and which shall be paid to the shareholders of the company whose names appear on the Register of Member.

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