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5 days ago
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ARTICLE AD BOX
Summary
TCS’s future may not be as dismal as dismissals of its business model suggest. Its revenue and profit growth raise optimism over the Indian software industry’s ability to survive and thrive in the era of artificial intelligence.
Tata Consultancy Services (TCS) on Thursday reported a 1.6% net-profit fall in the January-March quarter from the preceding quarter to $1.5 billion on a revenue rise of 1.5% to $7.6 billion. India’s largest software services company also reported three large deal wins worth $12 billion in contract value.
Its resilience raises optimism over the future of India’s tech firms in the face of an AI storm. Artificial intelligence is taking over coding, the industry’s bread-and-butter for decades, which explains a prolonged slump in share prices.
While they may have been blindsided by AI’s emergence—and TCS’s decision to invest in data centres was seen as the firm settling for a commoditized AI-related revenue stream—AI adoption has opened new opportunities. Integrating legacy systems with AI tools often calls for specialized assistance, especially in sectors where regulatory compliance affords no space for mishaps.
Thus, although our tech firms have failed to ascend the global curve of software evolution, their prospects may not be as dismal as dismissive views of their capabilities would have us believe. So long as they’re still expanding revenues and profits, they’re still worthy businesses.
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