Financial year 2021 will be remembered for enterprises committing future technology investments into cloud stacks
For migrating applications to the public cloud, multinational companies (MNCs) will invest significant sums. This shift will benefit companies such as Tata Consultancy Services (TCS), said N Chandrasekaran, Chairman at Tata Sons.
“The pressing need for operational resilience and for enhancing customer experiences in digital channels accelerated enterprise decision-making, committing to future technology investments around the all-encompassing hyper-scale cloud stacks”, Chandrasekaran, who is also chairman of India’s largest IT services provider, said in a letter to TCS shareholders.
“This represents an important inflection point in the enterprise embrace of the cloud and will drive significant spending on migrating workloads to public clouds in the coming years”, he pointed out in the letter. Moving workloads to the cloud stacks is just the start of a company’s digital transformation journey, he said.
The capabilities of these stacks in the areas of analytics, machine learning and artificial intelligence will “open up a vast array of possibilities for enterprises to pursue new business models, address new customer segments”, he said.
Rajesh Gopinathan, CEO of TCS said in a letter financial year 2021 will be remembered for enterprises committing future technology investments into cloud stacks and accelerating their measured movement into cloud.
“The dependency on cloud triggered many engagements around migration, application modernization and data modernization for the company”, he said.
He said customers were on multi-year technology refresh cycles and that bigger growth and transformation (G&T) deals were expected to provide strong growth for TCS.
“In the medium and longer term, we see strong structural growth drivers triggered by the multi-year technology refresh cycle that our customers are embarking on, and their increased focus on G&T initiatives”, he said.
The growing transformation opportunities, in addition to large outsourcing opportunities, will also significantly expand the company’s addressable market, he said.
“We are entering FY2022 with strong growth momentum and with much better visibility for future growth than we did last year, powered by a strong order book built up throughout the year and a robust deal pipeline”, he said.