TCS, India’s largest offshore IT/BP services player, showed archrival Infosys a clean pair of heels in Europe, reporting regional headline growth for Q2 (to 30th Sept.) at 31% yoy (9.5% qoq) vs 10% yoy (0.6% qoq) for Infosys (see Infosys adjusts growth outlook as Europe struggles). Indeed, TCS Europe grew faster than its Americas business (23% yoy, 8.5% qoq) again beating Infosys (16% yoy, 6.3% qoq). Worldwide, TCS achieved revenues of $2.53b in the quarter, representing headline growth of 26% yoy (4.7% qoq). Operating margins, at 27.1%, were 90bps down yoy but 90bps up qoq, though still a full point short of Infosys’.
TCS generated revenues of some $650m in Europe in the quarter, and is increasing its lead over Infosys ($360m). We’ll be talking to TCS management soon and will give more detail, including a full analysis of the UK revenues of all the leading India-based players, in the next edition of TechMarketView OffshoreViews – for Foundation Service clients only, of course.