TCS outlook positive
S&P Global Ratings “Business 4.0″ framework is bearing fruit for Tata Consultancy Services Ltd (TCS) as it upgraded outlook to positive from stable.
S&P affirmed ‘A’ long-term issuer credit rating on TCS, which has signed about US$4.9 billion worth of contracts during the second quarter of fiscal 2019.
“We revised the outlook because we expect TCS’ business position to strengthen over the next 24 months following its recent large orders, good execution record, and robust profitability,” said S&P in a statement on 26 Oct 2018.
TCS is likely to maintain its growth and profit leadership in the global software services business.
TCS has trained the majority of its workforce on its new age digital services, positioning it well for growth.
TCS’ strategy under its “Business 4.0” framework is bearing fruit.
Customers seem to see benefits in the company’s “Location Independent Agile” model and believe TCS would continue to provide uninterrupted services despite issues related to protectionism.
“We expect the company to continue to win contracts and gain market share,” said S&P. fiinews.com