Indian IT services provider Tata Consultancy Services (TCS) is now worth more than US$100 billion, with its share price exceeding 3,500 rupees on the Bombay Stock Exchange last week.
Coming in on the back of surprising quarterly profit, this stock performance ranks TCS among the world’s 100 most valuable corporations, helping the company outpace the likes of Goldman Sachs Group in market valuation.
Also among the companies in the hundred billion dollar club are Facebook, Amazon, Apple, IBM, Microsoft, Google’s Alphabet, and Alibaba.
TCS’s stock price has gained more than 30% this year alone — the last Indian name to cross that threshold was Reliance Industries, the telecoms-to-energy conglomerate, in 2008.
Analysts say the stunning performance of TCS underscores the growing importance of the technology sector in Asia’s third largest economy.
The Indian IT services industry is currently facing many headwinds, with US president Donald Trump’s threat to scrap the H1B visa program being among the main concerns.
The rise of automation, artificial intelligence, and cloud computing seems to have reduced the number of clients for the labor-intensive back-office programming operations that Indian IT companies specialize in.
In July last year, TCS said it was focusing on winning small- and medium-scale clients in the US, as its large clients were hesitating to award contracts. Analysts are estimating that the company’s digital revenue will expand by 30% on a trailing 12-month basis.
With the H1B visa program causing disruption, TCS is investing greatly in hiring and training American workers in emerging technologies. The company was the top employer of US talent as of December 2016, according to a study by Cambridge Group, a Chicago-based consultancy firm.