Indian IT outsourcing giant TCS has reported a double-digit increase in revenue from its Latin American operations, with an increasing number of financial services firms in the region choosing the company’s technology solution for banking.
In its most recent financial results for the quarter ending June 2016, TCS revealed that it had sealed two new service contracts with Latin American banks.
TCS has not yet disclosed the names of its new clients, but has confirmed the growing demand for financial products. “We are seeing good traction in the demand for our IT solutions within the financial and banking sector,” stated Henry Manzano, CEO for TCS Latin America, in an email.
The news comes at a time when Indian IT firms are seeing higher visa fees undercutting their profits in the United States. Industry analysts in Bangalore, India’s outsourcing capital, say this might tempt many domestic IT firms to expand operations in Latin America on their way to penetrate newer markets.
But TCS has more than a decade of presence in Latin America, employing more than 8,000 people across a dozen delivery centers in eight countries, including Mexico, Ecuador, Colombia, Peru, Chile, Argentina, Brazil, and Uruguay.
Moreover, financial and insurance firms have long made up a large part of its clientele in Latin America, although the company has several clients in the retail, manufacturing, and telecommunications sectors as well.
Over the past decade, TCS has touted its core banking solution, known as TCS BaNCS, saying it transforms banking services and helps cut operational costs. Banco Pichincha, Ecuador’s largest bank, implemented this solution some years ago, and Colombia’s financial giant Bancolombia used it to digitize its operations.
It seems the growing popularity of mobile banking is also contributing to TCS’s growth in the region. The company has unveiled BaNCS Digital specifically for banks to provide banking services on mobile devices.
“Banks and financial institutions are requesting to have the right mix of interactive, user-friendly and efficient technologies,” Manzano added.