VAR500: TCS Revenues Soar, Wipro Not So Much

VAR500 Solution Providers In The News

Two of India's foremost IT solution providers (and member's the VAR500) released quarterly financial reports the week of July 18, showing one growing faster than the other.

Meanwhile, a new report from CDW showed a mixed economic outlook by CIOs; CIBER earned kudos from a major vendor; and Accenture offered a new video solution aimed at convention centers.

Tata Consultancy Services Pumps Up Revenue

VAR500 firm Tata Consultancy Services (TCS) reported revenue of $2.41 billion for the first quarter of 2011, an increase of 33.8 percent from $1.8 billion in the same quarter of 2010.

The company said growth was balanced across IT and service lines, including infrastructure, assurance and global consulting services. For the quarter, TCS had operating profits of $631 million, up 29.6 percent, and after tax profit of $542.3 million, up 34.6 percent. In a statement, TCS CEO and Managing Director, N Chandrasekaran. said that although TCS sees steady demand for services, the economy still appears "uncertain," so the company will adopt, "an entrepreneurial approach and remain agile to capture growth opportunities as they emerge."

Wipro Earnings Shows Slow Growth

Wipro reported flat IT services revenue growth of 0.5 percent, totaling $1.4 billion in revenue for the April-June quarter. Wipro's business analytics and information management business grew 7.6 percent, while other service offerings experienced a decline. The application development and maintenance segment dropped 2.8 percent, while the research and development business declined 3.4 percent.

Observers note that the $1.4 billion figure is roughly $40 million less than Cognizant's April-June quarter revenue guidance of $1.45 billion. If Cognizant's revenue -- due August 2 -- meets or beats expectations, Cognizant could become India's third largest IT provider behind Infosys and TCS.

CIBER Earns Microsoft Award

CIBER in North America has been named to the 2011 Microsoft Dynamics President's Club. President's Club award winners represent the top 5 percent of Microsoft Dynamics partners worldwide. The Microsoft Dynamics President's Club honors high-performing Microsoft Dynamics partners, who achieve extraordinary business success and growth. This is the first time in North America CIBER has earned the distinguished award -- and the VAR500 company received it after less than two years of offering the Microsoft Dynamics CRM solution on a global basis.

CDW Report: CIOs Optimistic About Mobile, Virtualization

Economic uncertainty has resulted in a mixed outlook among IT decision-makers according to the latest CDW IT Monitor. While confidence is on an uptick and spending is showing small gains, budget recovery has been slow.

"Given the current economy, many IT decision-makers are displaying a cautious optimism," said Thomas E. Richards, president and chief operating officer, CDW. "CIOs are looking at every IT investment in terms of how it makes sense for the business and our data shows they are still spending on key investments including software and hardware – particularly mobile devices, virtualization and security."

Accenture Company Offers Video Solution To Convention Halls

Origin Digital, an Accenture company, and Smart City Networks are collaborating to launch a turn-key solution for streaming video and Webcasting services at convention centers across the country.

Smart City Networks will provide the Internet connectivity and increased bandwidth for Origin Digital’s high-speed video streaming and Webcasting services.

Origin Digital’s service offerings include, live and on-demand video streaming and Webcasting; an embeddable flash player with dynamic bit rate to deliver an optimal viewing experience; real-time display of presentation slides and video that can be integrated with exhibitor or event Web sites; and a streaming portal with social media integration with Twitter and Facebook to enable real-time chat and customizable Web pages to access video that can include sponsor and event branding.