Tata Consultancy Services looks to grow beyond financial services focus in Singapore
It aims to double the revenues of its public sector, manufacturing and retail segments
[SINGAPORE] Tata Consultancy Services (TCS), one of the world’s largest system integrators, is looking to deepen its presence in Singapore by expanding beyond its traditional strengths in banking and financial services into newer growth areas such as the public sector and retail.
This comes even as its parent company in India undergoes its steepest-ever job cuts, reflecting both global headwinds and the sector’s rapid shift towards artificial intelligence (AI). It let go of 19,755 employees in the quarter ended Sep 30, bringing its global headcount below 600,000 for the first time since 2022.
In response to queries from The Business Times, TCS said it is on a journey to becoming a “future-ready” organisation by investing in new technology areas, deploying AI at scale and realigning its workforce model.
“TCS will also have to release associates whose deployment may not be feasible,” the company said, adding that this will affect about 2 per cent of its global workforce, mainly in the middle and senior grades. “This transition is being planned with due care to ensure there is no impact on service delivery to our clients.”
Headquartered in Mumbai and listed on India’s Bombay Stock Exchange and National Stock Exchange, TCS has a market capitalisation of about US$123.8 billion. The company operates across five major geographies: the Americas, Europe, Asia-Pacific, India, and the Middle East and Africa.
In Asia-Pacific, Singapore serves as TCS’ regional headquarters and is its largest market outside Australia, New Zealand and Japan. The office supports both local and regional clients across seven sectors: banking, financial services and insurance (Besi); travel and transport; communication and media; manufacturing; retail; life sciences and healthcare; and the public sector.
Beyond banking
According to Punit Agarwal, who became TCS Singapore’s country head in July 2024, the Besi and travel and transport segments currently make up about 75 per cent of its revenue.
“From a technology perspective, banks are the highest spenders. So we will continue to focus on banking and transport customers to give them that global experience,” said Agarwal, who has been with TCS Singapore for more than a decade in various leadership roles.
TCS’ experience in the aviation industry, helped by its parent company’s ownership of Air India, has allowed it to advise airlines in Singapore on improving customer service, such as enhancing online booking platforms.
Still, Agarwal is steering TCS Singapore towards diversifying its portfolio. “We are trying to see how we can bring some of our best practices from the public sector digital infrastructure perspective to Singapore,” he said.
TCS has delivered major public sector projects elsewhere, including India’s passport issuance system, which reduced processing time from months to days. Agarwal said Singapore, despite being a global digitalisation leader, still has legacy applications that require modernisation.
“We have developed AI-based solutions which can help to modernise not only mainframe-based applications, but also non-mainframe-based applications,” he said.
Mainframe-based applications refer to programmes that run on centralised computers while non mainframe-based applications are those that usually run on cloud-based or distributed software.
The company’s public sector ambitions dovetail with Singapore’s Smart Nation agenda. In July, TCS Singapore launched its AI-powered Research and Innovation Centre at Changi Business Park to accelerate digital transformation and strengthen Singapore’s role as a hub for emerging technologies. The centre enables customers, startups and academia to co-develop AI-powered solutions for public services and industry sectors.
“The whole idea is about how we can create solutions in Singapore with our customers and take them to the rest of the world,” said Agarwal.
Retail is another focus area. TCS Singapore recently partnered FairPrice to launch the Store of Tomorrow – a supermarket that uses AI to improve customer experience. One pilot involves an app recommending wines based on shoppers’ preferences.
In sustainability, TCS has teamed up with Nanyang Technological University to launch the GoZero Hub, which aims to help Asean organisations achieve net-zero emissions through projects on carbon management, energy transition and climate resilience.
Deep roots in Singapore
Under Agarwal’s leadership, TCS Singapore has also reorganised its operations. Dedicated sales teams have been created for each industry segment, allowing for deeper sector knowledge and collaboration with TCS’ global network.
TCS Singapore is also targeting startups and small and medium-sized enterprises through its “business as a service” initiative, which offers access to TCS consultants and technology infrastructure.
“We’ll completely run that technology for them, and we’ll also run the operation for them. So this becomes a business as a service, and all they need to focus on is just their ideas and their actual business,” said Agarwal.
He aims to double the revenues of the public sector, manufacturing and retail segments and capture at least 3 per cent market share in each. Each segment currently contributes single-digit revenue shares.
Having been in Singapore since 1985, TCS’ 40-year milestone coincides with the 60th anniversary of Singapore-India diplomatic relations. “TCS has been an integral part of this… diplomatic relationship and the technology transformation that Singapore has undergone,” said Agarwal.
“Yes, competition is there,” he said, referring to the presence of other consultancies in Singapore, “but we have the advantage of our longevity, relationships and the global experiences that we bring to Singapore.”
