N Ganapathy Subramaniam Curated

Chief Operating Officer & Executive Director, T...

CURATED BY :  

This profile has been added by users(CURATED) : Users who follow N Ganapathy Subramaniam have come together to curate all possible video, text and audio interview to showcase N Ganapathy Subramaniam's journey, experiences, achievements, advice, opinion in one place to inspire upcoming operations managerss. All content is sourced via different platforms and have been given due credit.

  • What is your view on GDP and manufacturing numbers where we haven't seen a strong comeback?

    All these numbers are one thing but we have to bank on the young population of India. I think that they all believe that tomorrow will be better than today. I went and met youngsters on college campuses or the people who joined TCS and they are extremely optimistic with a belief that the future is going to be much better. Interestingly, they asked me a question that NSG you spent 30 years to reach where you are, if I join TCS can I reach your position in half the time that you took for to get that. Such is the aspiration and energy level that they display. Thus, this is the big hope and strength that India has. I think we need to enable them and be meaningful to them unconditionally.

    View Source:

  • What is your view on GDP and manufacturing numbers where we haven't seen a strong comeback?

    All these numbers are one thing but we have to bank on the young population of India. I think that they all believe that tomorrow will be better than today. I went and met youngsters on college campuses or the people who joined TCS and they are extremely optimistic with a belief that the future is going to be much better. Interestingly, they asked me a question that NSG you spent 30 years to reach where you are, if I join TCS can I reach your position in half the time that you took for to get that. Such is the aspiration and energy level that they display. Thus, this is the big hope and strength that India has. I think we need to enable them and be meaningful to them unconditionally.

    View Source:

  • What are your expectations from the upcoming budget for the sector?

    I hope that this will be a business-friendly budget. The way the government has been taking inputs and promoting foreign investments. As well as, questions related to what each industry needs have been asked and we have been very explicit about what we want. The government has been very receptive. So, we are hoping that the finance minister will pull something great for all of us.

    View Source:

  • TCS is a market leader with its presence in several countries and you continue to grow. Name the geography that seems to be more promising from which your growth drivers will come from?

    Europe is looking very promising. We continue to grow in Europe and are expecting to grow by 15-20% here. On a vertical basis, I think, health care, life sciences and retail all these are looking positive. Banking and financial services appear a little doubtful at this point of time but they are not cutting on the spending. In the quarterly results, we analysed the spending pattern of the client basis and found that they are spending a lot more time on skilling their employees and investing a lot more in artificial intelligence and algorithm development. It is a good thing. This is the first time where they are realising that innovation is surpassing productivity, which is a big thing because of productivity 5%-10% year-on-year basis we used to get either from IT services or operations - Fintech and operations. But the fact is that they are now seeing automation bringing the algorithmic thing into this whole thing that integrates Fintech into that whole solution. This means their efficiency gains or growth gains is a factor in terms of percentage.

    View Source:

  • What is your outlook on the IT sector for FY21 amid geopolitical risks and challenges like Brexit, US-China and US-Iran among others?

    We came here to Davos to find a little bit more about this and to see how our customers are dealing with it. Overall, we felt that things could be pessimistic because some of the consulting firms also launched a survey on it but surprisingly when we met our customers yesterday and today we find them more optimistic then what I thought. From there perspective, I think that the trade discussions are over at least for now. And, then the Brexit is something and there is a clear certainty about it. Directionally, I think, the new government in the UK is pro-business. These are the feedbacks that we are getting and they don't see any headwinds at this point. They think that there are a digital agenda and the transmission at which they are looking at. These things will continue and they, at present, are more optimistic then what I thought they will be. The conditions were the same last year around this time as well and then we got some surprised from the second quarter. So, we have to wait and see but overall, I think that we are in a good position.

    View Source:

  • Where do you think TCS will participate in it?

    We are promoting efforts like cleaning of lakes by providing the kind of technology that can be brought in and how we can resurrect all the dried lakes so that rain harvesting can happen and how do you plant trees around it. And, systematically use technology to grow the right trees at the right place, which is also very important. As you know we have m-Krishi as a platform that helps the farmers to look at the soil conditions and weather conditions and then give them all the market-related information. So, we are leveraging the platform to see how it can be used for improving the quality of life of the larger community.

    View Source:

  • As a corporate India and being one of the big IT companies what is your view on how technology will blend with things to create a better and greener world in time to come?

    Technology is very important. We have a very strong and young population and their aspirations which is very good. Now, the number of people who have taken up the task of protecting Mother Earth and world life is amazing to see. This is a great thing but the topic of technology is overwhelming for example when we conducted the Hackathon in the school going kids then one of them came with a robot that can pick the dry wastes in a segregated way. Interestingly, the team won the national award on that particular time. So, technology is integral to this particular work.

    View Source:

  • Davos is a big platform where people are talking about sustainability, green & cleaner energy, climate change and global warming among others to create a better world for the next generation. How do you think India can play a role there?

    The move that India has made whether it is Swachh Bharat and single-use plastic reduction has caught the imagination of the world community. When I go to any customer meeting, then things start with it and it gives a sense that it is a great thing and then they have to share the fact that we are trying to clean up the country and have a focus on well-being, younger population, ways to bring energy to the younger population and how to make them fit and running. So, it is a great thing to begin the conversation with.

    View Source:

  • The attrition rate is under control and stands at 11.5%. Do you think that you will be able to sustain these levels for the entire FY20?

    I think so. If you look at it then you will find that the attrition level slightly goes up in the first quarter because people chose to go for high study and they make decisions post-performance appraisals. So, the attrition level goes up in the first quarter, but we are comfortable with that 11.5% attrition that we have right.

    View Source:

  • What is the deal pipeline for FY20? Are the weak macros impacting large client decisions or deal closures?

    I think the overall demand environment and the pipeline look good. The decision-making cycles, especially when it comes to digital payments is quite faster, but at the same time, it is short-term in nature where people are signing up for a long-term deal. The decision making is something that you will have to wait and watch.

    View Source:

  • How do you view the minimum public shareholding of 35% discussed in the budget?

    The finance minister has made this proposal and we are currently studying it as well as a bill has to come regarding it. We have to wait for the details and the promoters will consider this appropriately in time.

    View Source:

  • You said that you see some stress emerging in the European banks. Can you elaborate the kind of impact that it can have on your BFSI vertical?

    The BFSI softness is something that we called even in the last quarter, so I think that this softness has further accentuated in the capital markets space globally as well as in certain European organisations. Specifically, with respect to Europe, I think most of them felt that Brexit would have been over, and they would see an environment where the interest rates would go up. I don't see any basic structural weakness except the capital markets and the European situation. In the $5.7 billion contract value that we have announced in this quarter, more than $2 billion comes from the banking financial services.

    View Source:

  • How do you see the sub-contracting cost rising amid the ongoing H-1B visa restrictions? What kind of impact do you see on your margin in the future?

    I think the sub-contracting cause reflects the current business models and situations. It has been constantly going up as we need short-term skillsets to execute and capture the demand in the marketplace. If we begin to participate in the growth and transmission projects, especially in both the US and the European markets, then there is a need to have local market knowledge. In such a situation, we end up hiring some of the local specialists to support us in the product execution over a period of time who are typically short-term in nature.

    View Source:

  • What has been the cross-currency headwind this quarter? What is the further impact you see on constant currency revenue growth going forward?

    On the constant currency basis, when you say that it is a 10.7% growth versus 12.6% then it is not much of the reflection on the currency basis because we are talking about constant currency numbers. In the last quarter, we called out certain softness in the capital markets and certain organisations or a certain set of customers in the European segment, but both of them have accentuated in this quarter. We hope that this situation will correct itself in the coming quarters.

    View Source:

  • Your profit has been better then street estimates slightly, however, the other income component has been on the higher side. Going forward what is your estimate on the profitability?

    We, as a management team implemented strategies that aimed for revenue generation in terms of Business 4.0, Agile automation and all that is relevant. The second thing is that this year we will focus on leveraging all the investments that are made in terms of Agile, workplace transformation, workforce transformation and continue to stay on a double-digit trajectory. Our focus is to maintain the double-digit trajectory as well as look at the efficiency angle and get back to our margin aspirations.

    View Source:

  • TCS' EBIT margins have declined by 90 bps to 24.2%. What led to this fall? Are you confident to retain the FY20 margin guidance between 26-28%?

    This quarter of the financial year 2020 (FY20) has been a steady quarter for us. We achieved all-round growth in all the verticals except in the banking, financial services and insurance (BFSI) segment, capital services market and European banks situation, which softened a bit and is something that we called out in the last quarter as well. But overall, we are very happy with the performance. When it comes to margin then we are happy that we were able to maintain it despite the softness in the revenue, which we didn't anticipate at the beginning of the quarter. I don't see any reason why we need to change that margin aspiration band that we have published at this point in time.

    View Source: