Niyamath Parveez

Facts and figures can be presented or represented to prove anything and the best way to find out the truth in a situation is to look behind the main figures. This is not to say that companies or firms are being deliberately deceitful in their actions or reporting or figures but there can be many different ways to release statements or presentations. A company who has a number of goals and aims may need to present figures for one issue but these may not be relevant to their entire output or workload. This can be seen when examining a firm’s revenue, and considering the current financial climate, it is vitally important for companies to understand, how and where they are making any revenues.

Not every company is able to offer good news about their financial status at the moment but Tata Consultancy Services, an Indian based software Services Company was able to do just that recently. They announced that their revenues had risen by 12% during the first quarter of 2009. There has to be consideration given over to other factors to take in the full picture but one thing of great interest is the fact that financial services made up for just under 50% of the entire revenue earned by the firm. This means that the company is largely dependent on the financial sector which could cause problems if there was to be a change in the market. However, given that it is predicted that more banks and similar companies will be turning towards outsourcing to get through the current financial situation, it is likely to be a booming industry for some time to come. This means that Tata Consultancy Services should be able to keep their revenue levels high.

It is obvious that many banking firms are badly hit at the moment due to the current financial crisis that is engulfing the world and it makes perfect sense to see many of them looking to cut costs in anyway that they can. One of the best ways to reduce labor costs is to turn to an outsourcing firm for assistance and the benefits that can come from offshore outsourcing is not only restricted to financial benefit. Given that Tata Consultancy Services are working on behalf a great number of customers and clients; they are able to pick up a lot of experience and expertise, which ensures they can offer a great service to their customers. The reduced labor costs is one thing but if the service was terrible, the end users would not be slow in telling the firm and they may take their business elsewhere. This means that an outsourcing firm needs to provide quality at a cheaper cost and the results for the first quarter of the year suggests that Tata Consultancy Services are managing to do just that, especially in the difficult financial times we are experiencing.

The route of outsourcing is not something that every firm can benefit from but the results that have been obtained by Tata Consultancy Services indicates that providing an outsourcing service can be a great way to give your revenue a boost.