Chairman
The global environment is going through considerable changes. At the
same time, the world is navigating several important transitions: the Energy transition,
the Supply Chain transition and the AI transition. Undoubtedly, these transitions will
require significant investments in technology and innovation, and offer a huge growth
opportunity for the IT industry.
Dear Shareholder,
I am pleased to share that your company has done well in a volatile
global environment in the year gone by. In FY 2023, your company delivered revenue of ^225,458
crore, a growth of 17.6%. This growth has come at an industry-leading operating
margin of 24.1%.
TCS continues to play a crucial role with clients to enable their
business transformation, helping them accelerate new technology adoption and bring agility
into execution. We work with large enterprises on transformation initiatives to build a
digital foundation for the future, enable strategic leverage of data and artificial
intelligence (AI) and reimagine customer and employee experiences.
Your company delivered healthy client metrics enabled by new customer
additions and deep client relationships.
In FY 2023, growth has come from broad-based performance across markets
and industry verticals. The order book continues to be strong, indicating demand for your
company's services. From a talent perspective, the employee strength grew to over 614,000
associates with 35.7% women associates.
The global environment is going through considerable changes.
Geopolitical factors such as the conflict between Russia and Ukraine, rising inflation and
volatile commodity prices have caused slowing down of global growth and created stress in
the overall economic environment.
At the same time, the world is navigating several transitions.
Undoubtedly, these transitions will 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.
There are many innovations across products, services, manufacturing,
and delivery. New business models are also emerging. This requires investments in
technology and innovation including electric mobility, renewable power, hydrogen and
sustainable fuel. In addition, sustainability compliance and reporting requirements are
fast evolving as new standards and regulations are coming into play. Across the facets of
this transition, investments in IT and digital technology will be an important enabler for
businesses.
The supply chain transition resulting from the geo-political
situation is altering the global supply chains. Companies are rebalancing their supply
chains for resilience and efficiency.
New global supply chain ecosystems are being created with India playing
an important role. This is being led by significant capital investments in technology to
set-up 'digital-first' manufacturing and supply chain operations as well as to build
ecosystem integration with partners.
In the past decade, there has been a rapid evolution of digital
technologies, bringing about a transformation across every industry. Now, the advancements
in AI have made AI transition
a central focus. The impact of AI and Machine learning is going to be
profound. There is a transition already underway from predictive AI to generative AI.
Majority of the businesses are still adopting predictive AI and are on the journey of
capturing large volume of data, harnessing the power of cloud and IoT. There are varying
levels of adoption in companies across sectors. Leveraging generative AI would further
require technology innovation and investments.
There is another important area that companies need to focus on -
building talent for the future. The energy, supply chain and AI transitions are going to
require companies to reskill/upskill existing talent base, hire and integrate new talent
and invest in research. Our technology strengths make us well-placed to respond to the
global demand and scale up our talent base.
As the future of work is evolving, enterprises globally are also
assessing their approach to talent. Today, companies can tap into talent anywhere and
leaders need to learn how to harness the global talent pool effectively. Technology and
tools are facilitating collaboration and enabling virtual and hybrid models of work.
Harnessing this talent will need an approach that leverages technologies like AI and cloud
to enable effective employee engagement and collaboration.
Your company is significantly investing in building AI capabilities
which include products and platforms that are AI-powered.
Over the last few years, your company has leveraged partnerships to
design and orchestrate a completely indigenous software-defined 4G/5G network stack. 5G
technologies along with IoT, edge and AI will enable new digital transformation
opportunities across industries, both industrial and consumer. We will also invest in
research areas important for the future, in collaboration with our global academic
partners and start-up ecosystem.
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 your
company.
On behalf of the Board of Directors of Tata Consultancy Services,
I want to thank you for your continued trust, confidence, and support.
Warm regards,
N Chandrasekaran
Chairman