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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4703)	6/23/1999 4:37:00 PM
From: Mohan Marette	Respond to of 12475

TCS mulls spinning off software products business. ======================================= About TCS Tata Consultancy Services (TCS) is Asia's largest global independent software and services company. tcs.com tata.com ======================================= TCS mulls spinning off software products business Indian software behemoth Tata Consultancy Services (TCS), is drawing up plans to infuse more energy into its packaged software products business. According to sources, the TCS top brass is considering spinning off its software products business into a separate profit center. Sources in TCS headquarters in Mumbai said that plans are in the early stages of discussion to push its five-product offering into a high growth path. The performance of the products business has been rather dismal forming a mere 3.7 percent of its total revenue in 1997-98 and an estimated 4 percent of Rs 1,650 crore revenue in 1998-99. It is ironic that though TCS is growing at the rate of 50 percent, its products business has been stagnating for the last couple of years. Over 90 percent of its revenue still comes from software exports with domestic business, including turnkey projects, logging a modest Rs 113 crore last year. The timing of the decision to give packaged products high priority coincides with the Rs 200-crore order from Punjab National Bank for total bank automation, the biggest-ever single order for any company in the banking and finance sector. TCS, say market analysts, is also anxious to balance any revenue off-set caused by exposure to the Year 2000 problem. TCS recorded 26 percent of its revenue from Y2K projects. This is expected to be brought down to 10 per cent this year before the problem ceases to be a source of income. Giving the charge to its products business is seen as the right move in this direction. (Excerpted from The Times of India, June 21, 1999) ========================= Download the TCS screensaver to pep up your desktop and capture the beauty and splendid magic of India. To download the screensaver, click on the button featured below. Unzip the file into your C: and run the setup.exe. The setup will take you through the installation. tcs.com