Tata Consultancy Services (TCS) Ltd’s quarterly earnings from the financial sector have edged past that of Accenture Plc, which is nearly double its size, making the Mumbai-based company the world’s largest pure-play information technology (IT) and consulting firm servicing megabanks and insurers.
The financial services sector is the largest buyer of services and solutions from IT and consulting firms, and in the last decade, Accenture has managed to retain its sectoral dominance. TCS ended with $5.21 billion in revenue in the September quarter, recording 10% growth, while Accenture ended with $10.1 billion in the August quarter, up 11% from the year-ago period. However, TCS’s BFSI vertical saw 9.3% year-on-year growth, while Accenture managed just about 3.1% growth in the latest quarter.
During the July-September period, TCS got $2.07 billion in business from banking, financial services and insurance, or the BFSI sector. This included $1.63 billion from work across application development and maintenance, and other traditional solution offerings, besides $445.9 million from its proprietary platforms such as TCS BaNCS.
TCS overtaking Accenture is largely on account of the two mega (over $1 billion multi-year IT) contracts, including an over $2 billion, 10-year contract with Transamerica Life Insurance Co., a unit of Dutch insurer Aegon NV, and a $1.36 billion, 10-year contract from a unit of British insurer Prudential Plc. Both contracts saw TCS deploying its BaNCS platform. Expectedly, TCS’s platforms business reported a 26.65% jump in revenue in the September quarter from the year-ago period.