Despite a global slump in telecom, TCS managed to garner Rs 900.3 crore from telecom software, and make it to the No 8 position in the V&D100 Top10 Equipment club. Telecom software accounted for about 18 percent of its total revenues of around Rs 5012.38 crore in 2002-03, making telecom its second most lucrative vertical behind BFSI.

This performance was a result of shifting clientele from telecom equipment manufacturers to the mobile service providers, as globally telecom companies were cutting down spending on new systems and focusing more on applications. Therefore, though TCS continued to service equipment makers like Nokia and Motorola, more revenues came from clients like America Online, Qwest, and British Telecom.

Revenue from equipment manufacturers was about 35 percent at Rs 315 crore, and the remaining 65 percent of Rs 585.28 crore came from mobile service providers. The lion’s share came from British Telecom, Verizon and AT&T. This was a total turnaround for TCS, where in FY 2001-02, as much as 60 percent of the revenues came from equipment manufacturers.

CEO : S Ramadorai Area of Operation : Telecom Software Address : Air India Building, 4th Floor, Nariman Point, Mumbai - 400 021 Tel : 022-56689999 Fax : 022-22040711/22820947 E-mail : tcs_corpoffice@mumbai.tcs.co.in Web site : www.tcs.com

New programs were invested in on the OEM side of the business, albeit with caution. Those positioned towards wireless and 3G services were focused. Among operators, those with best-of-breed solutions, and focus on telecom outsourcing, were partnered. Big OEMs and T&M vendors were mainly R&D and technology customers.

In the past, billing and CRM used to be standalone, but they got increasingly integrated. This allowed TCS to provide not only applications for the integration, but also attract offshore contracts to be done in India. TCS added 1,500 telecom experts in its Chennai facility. It plans to invest about Rs 5 crore on the OSS Lab at the Tidel Park, with products from alliance partners such as Siebel, Oracle, IBM, Kenan, Portal and HP.

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