TCS wins $2.2 billion order from UK-based pensions firm

Nov 09, 2011 |

Reuters

mumbai

Tags:

software
tcs

Tata Consultancy Services, India's leading software services exporter, said on Wednesday it won a $2.2 billion order boosting its shares more than 3.5 per cent in a flat market.

The 15-year order from UK-based pensions and insurance provider Friends Life for TCS unit Diligenta comes as the Indian IT sector looks to overcome stiff competition and a gloomy economic outlook.

TCS and local rivals Infosys and Wipro provide a host of IT services to Fortune 500 firms, but face stiff competition from global players including IBM and Accenture for large outsourcing deals.

TCS shares were trading up 3.0 per cent at 1,138.60 rupees ($23) at 0835 GMT, after rising by as much as 3.5 percent after the announcement.

India's showpiece $76 billion IT industry gets more than 90 percent of its revenue from providing technology services to overseas clients and counts the United States and Europe as its biggest markets.

Europe is the second largest market for the software firms, and the euro zone debt crisis is a worry for the sector that has been looking to increase its sales to the region to hedge against their excessive exposure to the United States.

TCS, a unit of the salt-to-steel Tata Group conglomerate, said last month it does not expect to increase its prices in the near term due to global economic uncertainty.

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