India Gets Mega Software Investment

When you have money, you can use it to make more money.  That’s how the rich get richer.  And it seems that the largest software services provider in India – Tata Consultancy Services (TCS) – is doing just that.  For the 2011-12 financial year, TCS will be making an investment of Rs 2,300 crore.  Nonetheless, in a report in Money Control, it seems that the company was questioned as to why it hadn’t given out a special dividend.  To which Ratan Tata responded, “it’s true that I could have paid you more this time. But we would also like to have some more liquidity in case we see opportunities to acquire companies. But eventually, you will get more dividend once we do that.”

TCS Attacks

The company has also been attacked as of late too.  But Tata insisted that the investigation of his company for “tax benefits on onshore services,” was unwarranted.  He pointed out that “we have not received any such notice. I am not too sure of the veracity of that report. Unfortunately, people read these reports and assume that they are gospel truth. But that is simply not true.”  Indeed, he also noted how TCS’s attrition rate was on a higher scale than “the industry average.”  He pointed out how well the company motivates its employees, by giving them an opportunity to “bag an overseas assignment, which gives them experience of working abroad. We are the largest when it comes to giving employees overseas assignments. So we do keep them motivated enough.”

Expanding Markets Globally

While it’s true that much of the TCS markets are in North America, the company is now also “in the process of doing more business in Europe and other markets. About revenue from large clients, we need big anchor clients.”

 

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