India’s largest IT services company, Tata Consultancy Services, recorded revenues of Rs 2578.4 crore for the third quarter, ending December 31, 2004. This was a growth of 38.2 percent from Rs 1866.0 crore in the corresponding quarter during the previous year and 6.1 percent from Rs 2430.7 crore in the quarter ending September 30, 2004.

The company’s growth over the last ten years has been impressive. It is recruiting at a rate of more than 3,000 employees per quarter, taking its current headcount to more than 44,500. In nine months, ending December 31, 2004, net income rose 56.7 percent to Rs 17.9 billion ($408.8 million) on revenue that rose 40.5 percent to Rs 71.4 billion ($1.6 billion).

Established in 1968 as a division of Tata Sons, it completed a listing on the Mumbai Stock Exchange in 2004, where it commanded a market capitalization of more than $14 billion.
With the application support market becoming increasingly commoditized and global IT services players establishing their bases in India, TCS is focusing on its core applications management business. In a recent interview, Ramadorai stated, “If we do the same thing of applications maintenance and enhancement, we are not going to continue on our growth track. The investments that we have made in intellectual assets and software tools are essential to our future growth.”