TCS shares gain amid slew of positive developments
Shares of Tata Consultancy Services (TCS), the country’s most valued IT firm, rose nearly 1% in intraday trade on Friday amid a slew of positive developments. The IT major said in an exchange filing that it has been selected as a strategic partner by Canada-based aviation firm Bombardier to accelerate its digital transformation and drive innovation. Besides, the Tata Group company has launched a software "TCS Customer Intelligence & Insights (CI&I)" to help retailers deepen relationships with consumers through hyper-personalised engagement and enhance loyalty.
Boosted by the developments, TCS share price gained as much as 0.6% to ₹3,393.80 against the previous closing price of ₹3,372.40 on the BSE. The stock touched a 52-week high of ₹3,915 on January 20, 2022, while it hit a 52-week low of ₹2,926 on September 26, 2022.
The IT heavyweight has underperformed the BSE benchmark, in sync with the BSE IT index, by falling 13.7% in the last one year, as compared to 1% gain in the Sensex. The BSE IT index has plunged 20% during the same period last year. In the last six months, TCS shares rose 7% against a 10% rise in the BSE Sensex, while it gained 8% in a three-month period as compared to 3% growth in the 30-share Sensex.
TCS in an exchange filing on Thursday said that Bombardier has selected it as key strategic IT partner to help the aviation company transform its application and ERP estate and reimagine its IT operating model to enhance agility and drive sustainable growth. However, the company didn’t reveal the financial transaction involved in the deal.
As the principal strategic partner, TCS will modernise the aviation leader’s legacy systems that support its engineering, manufacturing, aftermarket services and defence activities. “TCS will deploy and integrate new systems around the S/4 HANA ERP platform. This transformation of its application estate is expected to help Bombardier reduce technology debt, accelerate its cloud journey, promote innovation, and drive growth. Additionally, TCS will transform Bombardier’s IT operating model using AI, machine learning, data and cloud services to enhance agility, resilience and user experience,” it said.
In a separate filing, TCS said it has introduced software, TCS Customer Intelligence & Insights (CI&I) for Retail 3.0, which will help retailers deepen their relationships with consumers through hyper-personalised engagement at every step of the customer journey. Certified as RealCDP by the CDP Institute, CI&I 3.0 can be deployed on-premises or in the cloud and has been optimised for deployment on Microsoft Azure, as well as other providers.
The software generates insights, predictions, and recommended actions at key physical and digital touchpoints, resulting in higher returns on marketing investments, greater customer satisfaction, and increased customer lifetime value, it said.
“The solution includes a unique combination of a real-time customer data platform (CDP), intelligent loyalty management, and AI-driven customer analytics with next-best action recommendations and journey orchestration.”
Besides, TCS also informed the exchanges that it has been named a leader in digital workplace services in North America by Everest Group’s PEAK Matrix. According to the Everest Group’s report, enterprises seeking holistic employee experience and XLA-driven digital workplace transformation can benefit from TCS' offerings such as TCS Cognix. “It said that enterprises seeking industry-contextualized solutions will benefit from TCS, which has a credible portfolio of services and enterprise adoption proof points around this. The report goes on to say that enterprises with focus on sustainability will find TCS to be a relevant partner due to its multiple workplace sustainability use cases, metrics, and offerings,” the IT major said in the BSE filing.