TCS to provide Human Resource Management software service to Marks -; Spencer

27 Jul 2022 , 02:32 PM

The top software exporter in the nation struck a multi-year, multi-million dollar agreement with Marks & Spencer on Wednesday in order to overhaul the British retailer’s human resource management. Abhijit Niyogi, the company’s business head of retail in Europe, told PTI that despite macro headwinds like inflation, rate tightening, political unrest in the UK, and the current Russian invasion of Ukraine, demand for IT services is still high in Europe and the UK.

According to a senior official, TCS anticipates that the USD 1 billion retail sector business in the UK and Europe would expand faster than the company’s entire revenue. This is due to the high demand for IT services.

Niyogi said that the firm he leads has a topline contribution of over USD 1 billion annually and that, over the past two to three quarters, its revenue growth has outpaced that of the corporation as a whole. The business accounts for about 10—15% of the company’s declared total contract value (TCV). As long as there is market demand from retailers, it is now pursuing mid to large-size partnerships with a revenue potential of about USD 300 million.

Niyogi gave a positive response when asked whether he expected the business to keep outpacing the company’s overall sales growth. “At least for FY23, I don’t see any regression following a very successful Q1. The pipeline is quite robust, the conversion ratio is also fairly excellent, and the demand is at an all-time high, according to what we see for Q2 and Q3, he continued. TCS reported a 10.2% increase in revenues to USD 6.7 billion in the first quarter of the fiscal year, with the retail sector leading the pack with an almost 25% rise in revenues on a constant-currency basis.

He claimed that because of macros, customers are less skeptical and that shops expect their software suppliers to remain partners in both prosperous and trying times. In growth and transformation agreements like the one it has signed with M&S, the profit margins are often higher because clients want to invest in cutting-edge services that are significant to their consumers and the value of the brand.

According to Niyogi, the majority of its current staff members with domain expertise who are familiar with the regulatory procedures governing the UK’s retail sector will be assigned to this project. About 70% of the work on the M&S deal will be offshored to India while the remaining 40% will be completed locally in the US. The work for M&S, which has over 80,000 workers, is novel since it is being done on the Oracle supply chain management platform, he added, even though TCS has previously worked on HR solutions.