Is TCS losing the race because of slow digital growth?

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A favourite among investors at one time, Tata Consultancy Services is fast turning into a mammoth that is failing to evolve with time as others are fast catching up on the increasing demand for digital.

India’s largest software exporter’s enterprise value fell to ₹4.86 lakh crore by the end of December, a drop of over 6 per cent over the previous year. The company’s market capitalisation similarly slipped from ₹5.01 lakh crore in Q3 2015 to ₹4.80 lakh crore in the latest Q3, a slide of about 4.2 per cent.

“Infosys and Wipro have been more aggressive (than TCS) to work with new-age partners in both mobile and analytics space. More specifically, Infosys and Wipro have also been investing in companies that either already have, or are in the process of creating, stellar intellectual property assets to help automate processes,” said Sanchit Gogia, CEO, Greyhound Research.

Source: The Hindu Business Line

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