TCS to remove digital classification from its business

Tata Consultancy Services (TCS) plans to remove the digital classification in its business from next fiscal year.

Digital services such as artificial intelligence, analytics and blockchain are now integrated into most digital transformation projects for clients. From next year, TCS may switch back to a traditional segmentation of its services that will make it easier for stakeholders to track the company’s performance.

TCS’ digital revenue grew 27% in the second quarter, moderating from the 42% growth the company had seen in the first quarter. TCS earns a third of its revenue from digital services.

According to analysts, weakness in the company’s retail division had impacted its growth. Retail clients have traditionally been big adopters of digital technology services. Analysts have often pointed out that while IT services companies do issue ‘digital’ metrics, they each have different interpretations of what constitutes digital.

Other technology companies like Infosys and Wipro do not explicitly detail the components of their digital services portfolios; as cloud, cybersecurity and AI are components that are considered key elements.