Tech cos diverge on sharing digital revenue figures

Bengaluru | Mumbai: India’s top IT services provider Tata Consultancy Services (TCS) has stopped providing a revenue breakup for its digital business, resisting calls from analysts who had sought its inclusion as a way to measure the sector’s performance.

Other large IT players, however, said they would continue to disclose digital revenue.

TCS CEO Rajesh Gopinathan said it was getting increasingly difficult to separate a deal’s digital and legacy component and that the metric no longer provided value. “Deals are becoming more complex and large deals pretty much leverage digital components across (the board) and this breaking out of revenue between digital and non-digital is becoming a non-value adding part of it…from this quarter we are discontinuing to share this break-up,” Gopinathan said after the company’s Q3 results.