M&S outsources 250 technology roles to Tata


India's largest software service provider TCS on Thursday reported a 3.94 per cent drop in its consolidated net profits for the quarter ended December 2017 due to weakness in the banking and financial services sector.

The Mumbai-headquartered company won its first 50 million plus deal for digital services.

BFSI revenue dipped 0.4 percent as the company reported a 3.6 percent fall in net profit to 65.31 billion rupees ($1.03 billion) in the quarter to December 31.

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. Core supplier services will transfer directly to TCS and the day-to-day relationship and project management of specialist suppliers will move under the control of TCS. Growth was led by Energy & Utilities (+8.5% Q-o-Q), Travel & Hospitality (+2.9% Q-o-Q) and Life Sciences & Healthcare (+2.5% Q-o-Q). TCS' digital revenue saw an increase of about 40% year-on-year and accounted for 22.1% of the company's revenues, the company said in a statement.

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In this regard, Gopinathan said, "Progressive organisation looking to take advantage of new opportunities in the Business 4.0 era are up their digital investment, and TCS has emerged as thier preferred transformational partner".

In dollar terms, the revenue stood at $4,787 million up by 9.1% yoy and 1% on qoq basis.

"We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive U.S. capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS", TCS CEO and MD Rajesh Gopinathan said.

Volume growth was 1.6 per cent quarter on quarter the strongest for this quarter in three years - indicating that there was pricing pressure given that the constant currency revenue growth was only 1.3 per cent.

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According to M&S CEO Steve Rowe, the company's transformation of its technology team will save the company up to £30m annually by 2022 - making a significant contribution to Rowe's five-year turnaround plans.

TCS said it has adapted the BaNCS platform for the USA market to meet the country's operational and regulatory needs. "TCS is proud to partner with Transamerica in its ongoing transformation to enhance its customer experience, and looks forward to welcoming their current employees for new careers at TCS".

Declared interim dividend of RS 7 per equity share of Re 1 each of the company.

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