TCS to launch new automation platform - Economic Times

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BENGALURU: India's largest software exporter Tata Consultancy Services will launch a new automation platform over the upcoming months, at a time when India's top software firms are automating traditional, commoditized services to boost margins and increasing investments in newer areas of technology and platforms.

On a post-earnings conference call with analysts, chief executive N. Chandrasekaran said that the company had already done pilot runs with 5 of its large clients and would soon launch the platform.

"We have done several pilots," said Chandrasekaran. "We will launch this platform formally over the next few months. So far the response has been positive and clients are delighted. It's been well-received and has been successful so far."

TCS, also for the first time, disclosed revenue from its new-age digital business. Chandrasekaran said that the company had touched the $100-million annual run-rate with all its platforms and during the 2014-15 financial year.

TCS is not the only company that is investing in building internal automation tools and platforms. Top rivals such as US-based Cognizant, Infosys and Wipro are also heavily investing in building automation capabilities as they look to drive up revenue productivity and create leaner organizational structures.

Automation is widely seen as the biggest disruptive threat to India's $146-billion Information technology industry, which has over the years followed a "pyramid model" of revenue generation, where revenue growth was directly linked to manpower addition.

Now as the sector's growth rates have slowed down, companies are leaning more towards non-linear growth models and trying to increase revenue from newer areas of technology such as analytics and cloud.

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