TCS Believes Blockchain Will Help Generate $200Mln in Revenue in FY19
TCS Ltd. (Tata Consultancy Services) believes that the financial year 2018-19 is going to be the year of “blockchain adoption” by major banks and stock exchanges, which shall also help the firm generate roughly about $200Mln in revenue just from its blockchain practice.
The sanguine approach of the Mumbai-based firm shows that it is trying to make itself future-proof by investing more in newer technologies, such as blockchain. In addition, the firm’s ability to scale up blockchain shows its strategy to build something in new areas rather than purchase talent and technologies.
Ganapathy Subramaniam, company’s chief operating officer, said in an interview last week:
“I believe this will be a year of Blockchain”
“What I mean by this is that until now we have seen a lot of proof of concepts but over the next 12 months, we’ll see a lot of projects of significance, which will set us up for a greater momentum in the coming years. Banking is one sector, especially with respect to payments, trade processing and settlements in capital markets which are seeing a very advanced stage of adoption of blockchain.”
He declined to reveal the exact revenue generated by individual digital components but seemed optimistic about the future.
When asked if TCS’ blockchain practice can help generate $200-300Mln in revenue in FY19, Subramaniam said: “Yes, I believe so as there is an opportunity and we are very, very focused on it.”
However, some analysts, at least for now, doubt the company’s claims on scaling the business from the technology. Phil Fersht, CEO of HfS Research, said:
“Yes, TCS has pool of skilled blockchain resources and a strong partnership ecosystem with emerging blockchain companies, platforms, consortia and academia under COIN (Co-Innovation Network). It also has technology agnostic approach, where it is following a multiplatform (Ethereum, Ripple) strategy for its clients’ engagements but no way can the company can get it to $200 million. The entire blockchain services market will be less than $1billion this year and TCS does not command 20% of it,”
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