N Chandrasekaran, chairman of Tata Sons and Tata Consultancy Services (TCS), in a letter to shareholders, said the company has thrived despite the global uncertainty that surrounded the IT industry over the past few months. He said, “TCS has done well in a volatile global environment in the year gone by. In FY23, TCS delivered growth of 17.6 per cent, at an industry-leading operating margin of 24.1 per cent. We closed the year with an order book of $34.1 billion. This along with the strong pipeline replenishment gives us good visibility for the medium term.”
Chandrasekaran, in the letter, addressed how the Indian tech major, TCS, is investing in AI technology to keep up with the industry. “The world is navigating several important transitions that require significant investments in technology and innovation and offer a huge growth opportunity for the IT industry. The global energy transition is accelerating. Businesses are making clear commitments towards a sustainable future.
“Businesses are still adopting predictive AI and are on the journey of capturing data, and harnessing the power of cloud and IoT. Leveraging generative AI would further require technology innovation and investments. TCS is significantly investing in building AI capabilities which include products and platforms that are AI-powered,” read the letter.
According to Chandrasekaran, there is growing interest and potential investments in technologies such as 5G, IoT, generative AI, virtual reality/metaverse, digital twin, and more in the near to medium term.
He also paid tribute to the outgoing CEO Rajesh Gopinathan, who will remain in the company till September 16 for the smooth transition of his successor, K Krithivasan, who takes over the baton on June 1. “I would like to thank Rajesh Gopinathan for his contribution during his tenure as CEO and MD and I wish him the very best for the future. I also take this opportunity to wish K Krithivasan the very best in his new role as CEO and MD of TCS,” he added.