In a letter to shareholders, N Chandrasekaran, the chairman of the Tata group, expressed confidence in IT company Tata Consultancy Services (TCS)'s ability to thrive amidst the global uncertainty that has plagued the IT industry in recent months.
Chandrasekaran highlighted TCS's remarkable growth of 17.6 per cent in FY 2023, accompanied by an industry-leading operating margin of 24.1 per cent. Furthermore, TCS closed the year with an impressive order book of $34.1 billion, providing favourable visibility for the medium term.
He also emphasised TCS' commitment to investing in artificial intelligence (AI) technology to stay ahead of the rapidly evolving industry landscape. He acknowledged the importance of technological and innovative investments in navigating significant transitions occurring worldwide, particularly in the context of the accelerating global energy transition and businesses' growing commitment to a sustainable future.
"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," stated Chandrasekaran.
The former TCS CEO also highlighted the IT major’s significant investments in building AI capabilities, including AI-powered products and platforms. He underscored the relevance of leveraging generative AI, as businesses continue to adopt predictive AI and harness the power of cloud computing and the Internet of Things (IoT).
“Advancements in AI have made AI transition a central focus, with the impact of AI and ML going to be very profound. Leveraging generative AI would further require technology innovation and investments. Significantly investing in AI capabilities, including AI-powered products and platforms such as 5G along with IoT, edge and AI will enable new digital transformation,” he said.
Chandrasekaran also expressed gratitude to outgoing CEO Rajesh Gopinathan, who will remain with the company until September 16 to ensure a smooth transition for his successor, K Krithivasan. Chandrasekaran thanked Gopinathan for his contributions during his tenure and wished him the best for the future. He also extended his best wishes to Krithivasan in his new role as CEO and MD of TCS.
“I would like to thank Rajesh Gopinathan for his contribution during his tenure as CEO & 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 & MD of TCS,” the Tata group CEO said.