TCS is aiming for a high double-digit growth in revenues from Canada in the next few years as the North American country's economy grows across sectors and digitisation becomes an essential aspect for businesses, a senior official has said.
TCS Canada, a wholly-owned subsidiary of India's largest IT exporter dedicated to serve the market, had a turnover of Rs 6,268 crore in FY21 and has been growing at triple the rate of overall IT services spends in Canada over the past few years, its country head Soumen Roy said.
Roy said if the Canadian IT spends have grown at 4-5 per cent yearly, the company has been able to grow at triple the pace and the company also surpassed the billion-dollar mark three fiscals ago.
The revenue growth from Canada, where it employs over 7,000 people at present, was hampered because of the pandemic-related disruptions in FY21 but is likely to be much better in FY22.
"Going forward, we will see very significant growth. It will be way more in the higher double digits," he told PTI, specifying that the growth rate will be seen in both the revenue as well as employee additions because of linearity between the two.
Roy hinted that so far, the company's business has a greater concentration in the greater Toronto area, but it is making efforts to broad base it by looking at other centres of economic activity and added that it is hiring 500 people in Montreal.
Canada has made significant investments in the educational ecosystem, which will ensure the supply of talent, Roy said, adding that the priority is to hire talent locally and if it is not available in a timely manner for projects, it will be arranged from outside.
Interestingly, Roy said nearly all the revenue which comes from Canada is for companies in the country, though there might be a small amount of technologies used by multinational corporations outside the country as well.
The business opportunity lies in greater digitisation needs felt by clients and is spread almost in sync with the Canadian GDP, Roy said, adding that half of the business comes from services, while the rest is split between other sectors like commodities and agriculture.
"Forecasts say Canadian IT spends will grow 4-5 per cent, but we have been growing at triple that in the last decade. In Artificial Intelligence and new technologies, they will grow at 15-20 per cent. The domestic market is huge, and we are yet to address that," he said.
In order to grow its visibility, TCS last week announced a five-year deal to be the title sponsor and technology partner of the Toronto Waterfront Marathon, in line with other marquee distance running events across the world it has associated with.