TCS’ North American Business Powers Q2 Growth

‘As clients prepare for a more challenging environment ahead, technologies like cloud that have been embraced now have to be fully leveraged to realize the promised value. TCS has the combination of contextual knowledge, technology expertise and execution rigor to deliver on this imperative,’ says TCS CEO and Managing Director Rajesh Gopinathan in a statement.

Tata Consultancy Services Monday said its North American business was the primary growth engine for the India-based global IT services and solution provider.

The Mumbai, India-based company Monday reported second fiscal quarter 2023 worldwide revenue of $6.88 billion, of which $3.73 billion, or just over 54 percent, came from North America. That North American revenue was up 17.6 percent over the $3.19 billion it reported for its second fiscal quarter 2022.

Total worldwide revenue grew 8.6 percent over the $6.33 billion the company reported for the same period last year.

[Related: Accenture, Deloitte, TCS Top Scores For Cloud IT Transformation: Gartner]

TCS’ North American market led that growth, with revenue in that market growing 17.6 percent year over year. That compared to growth of 14.1 percent for continental Europe, 14.8 percent for the U.K. 16.7 percent for India, 19 percent for Latin America, 8.2 percent for Middle East and Africa, and 7.0 percent for Asia Pacific.

Tata Consultancy Services ranks No. 2 on CRN’s 2022 Solution Provider 500.

Demand for TCS’ services continues to be very strong, with profitable growth across all of the company’s industry verticals and major markets, said CEO and Managing Director Rajesh Gopinathan in a statement.

“Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements,” Gopinathan said. “As clients prepare for a more challenging environment ahead, technologies like cloud that have been embraced now have to be fully leveraged to realize the promised value. TCS has the combination of contextual knowledge, technology expertise and execution rigor to deliver on this imperative.”

For the quarter, TCS reported revenue of $2.63 billion for its banking, financial services, and insurance business segment; $643 million for its manufacturing segment; $1.15 billion for its retail and consumer business segment; $1.16 billion for its communication, media, and technology segment; $745 million for its life sciences and healthcare segment; and other revenue of $551 million.

TCS, which is listed on both the BSE exchange, formerly known as the Bombay Stock Exchange, and on the NSE or National Stock Exchange of India, also reported net income of $1.30 billion, which was flat year over year.

Worldwide headcount for the global solution provider was just over 616,000 employees, which was up nearly 10,000 over last year.