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TCS France Growing In Double Digits
BENGALURU: Tata Consultancy Services grew its revenue in the double-digit range in France to $200 million in FY18, the first time those figures have been disclosed, and expects growth to rev up as the European economy improves.
Indian IT companies have been focusing on Europe to reduce their US dependence, where protectionist economic policies and slower spending by large banks is putting a crimp on growth.
Acquisitions have been a key part of their Europe strategy. This week HCL Tech NSE 0.68 % announced an acquisition in Germany. While the growth is faster from the region, the base is still small compared to the US.
In 2014, TCS NSE 0.53 % told analysts that France would be a $1billion business by 2019, ET has reported. “It has been slower than what we originally thought but it has turned in a double-digit year... It’s still a small base. It’s a $200 million base,” TCS CEO Rajesh Gopinathan told ET in a recent interview.
“We are quite positive on the market because it is tough market culturally. You need to wait to participate in an upturn when it comes. You don’t run in when a market is hot. France will turn in the medium term and as when the activity returns, we will benefit.”
