TCS eyeing Indian Railways outsourcing contract

Software major Tata Consultancy Services (TCS) is eyeing a Rs.2,500-crore Indian Railways outsourcing contract, a top company official said here Thursday.

"CMC and we will certainly look at it very seriously, it needs lot of experience. We have done projects for the British and US railways," TCS chief executive and managing director S. Ramadorai told reporters on the sidelines of a seminar organised by Calcutta Management Association.

CMC is another Tata group software company.

Incidentally, rival outsourcer Wipro is also eyeing the contract.

The railways ministry plans to procure a human resources management system and other modules for integrating and automating its payroll, accounting and pension functions.

Talking about the banking, financial services and insurance (BFSI) sector's performance after the slowdown, he said: "BFSI has stabilized during the last quarter. Signs of bottoming out is visible as some of them have declared handsome results."

TCS derives 44 percent of its revenues from the BFSI sector, Ramadorai said, adding that other deals in the pipeline were "healthy".

As for hiring during the ongoing slowdown, he said his company was looking at "a balance" of domestic and international recruitments.

TCS recruited 18,000 professionals last year.

"Last year in India, TCS hired 18,000 professionals and those people will be joining from the third quarter this fiscal," Ramadorai said.

Asked about fresh acquisition plans, he said organic growth would drive the company's future strategies. "We make very strategic acquisitions."

Last year, the company acquired Citigroup Global Services, the India-based business process outsourcing (BPO) division of Citigroup.

Earlier, in his address at the seminar, Ramadorai said TCS would remain focused with its investment and expansion plans in Latin America and Europe as it envisaged "much room to grow" in these markets.