Tata Consultancy Services has posted profit of 49% for the fiscal quarter that ended in December 2013, with the company’s net income rising 50% to $862 million. The growth follows improved business activity in Europe and North America, said the Mumbai, India-based outsourcing firm.
India’s biggest IT services firm expects the growth rate to accelerate in 2014. “Among growth markets, Latin America, APAC and MEA registered strong growth. India business suffered from volatility and declined sequentially,” said TCS in a press release.
TCS, which has the largest share of financial services outsourcing contracts among Indian companies, said its 3rd quarter growth was driven by industries like “Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom.”
“To support business growth, we have increased our hiring target by a further 5,000 employees for the current financial year to 55,000 professionals,” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.
According to IDC, global IT spending growth is set to exceed 5% in 2014 after growing at a slower pace last year.
“Strong international demand for our services and discipline in execution has helped TCS maintain its momentum and post robust growth in volumes as well as realization,” said CEO Chandrasekaran.
Many Indian outsourcing firms, including Infosys, have increased their growth forecasts for this year, but TCS found the demand weakening for its services in the domestic market and expects little growth for the company in India for the next two quarters.
A part of the Tata group, India’s largest industrial conglomerate, TCS has over 277,000 consultants in 44 countries. The company generated consolidated revenues of $11.6 billion for the year that ended March 31, 2013.