In a powerful testament to Natarajan Chandrasekaran’s strategic acumen, Tata Consultancy Services Ltd (TCS) is edging closer to an impressive milestone — a billion dollars in annual revenue sourced from its sister companies. This represents a staggering more-than-threefold jump in internal business since Chandrasekaran took charge of Tata Sons, the holding company of the Tata Group, eight years ago.

The Numbers Tell the Story

According to TCS’s latest annual report, group companies contributed ₹7,835 crore out of TCS’s total FY25 revenue of over ₹2.5 trillion, marking 3.1% of the IT giant’s earnings. Eight years ago, the corresponding figure was a modest ₹2,412 crore. This surge underscores the success of a well-orchestrated strategy to modernize the Tata Group’s digital backbone while harnessing TCS’s IT prowess across various industries under the Tata umbrella.

The “One Tata” Strategy: Synergy and Scale

The rise in internal revenue is not merely a happy accident — it’s the fruit of Chandrasekaran’s deliberate “One Tata” initiative. Launched shortly after his appointment in 2017, this strategy aimed to “simplify, synergize, and scale” the sprawling group’s operations. By encouraging collaboration and breaking down silos among Tata companies, Chandrasekaran created fertile ground for TCS to embed itself as a key enabler of the group’s digital transformation. “I see ample evidence that we are moving ahead on the course we set under the ‘One Tata’ strategy,” Chandrasekaran noted in a 2019 New Year message. His vision was clear: transform the Tata Group into an agile, unified entity equipped for the digital age.

Key Deals: Jaguar Land Rover, BSNL, and Beyond

Several high-profile deals have powered this internal revenue boom. In 2023, TCS secured an 800-million-pound contract from Jaguar Land Rover (JLR), Tata Motors’ UK subsidiary, to overhaul its IT infrastructure — a deal so substantial it fell into the “mega deal” category, defined as contracts exceeding $1 billion in revenue. TCS’s partnership with Bharat Sanchar Nigam Ltd (BSNL), along with Tata’s Tejas Networks Ltd, delivered another coup: a ₹15,000 crore contract to strengthen the state-run telecom company’s digital capabilities. Additionally, TCS signed multi-year contracts worth over ₹5,000 crore with Tata Capital Ltd, demonstrating the breadth of its internal engagement. These deals are emblematic of how the Tata Group has leveraged TCS’s world-class IT services to accelerate digital transformation across its portfolio.

The Road Ahead: New Horizons in Semiconductors and Digital

The synergy between TCS and its sister companies is poised to deepen. Tata Group’s foray into high-growth sectors such as semiconductors and digital businesses presents fresh opportunities for TCS to expand its footprint internally. A senior TCS executive, speaking anonymously, pointed out that the internal collaboration pipeline looks promising, with emerging sectors offering new avenues for TCS’s involvement. Chandrasekaran’s shareholder letter in the latest annual report reinforces this outlook, emphasizing the need for “reimagination” of systems and technologies to enhance resilience and efficiency. His focus is on creating decentralized, region-specific ecosystems and robust supply chains — all areas where TCS’s expertise is indispensable.

Challenges Amid Growth

However, it’s not all smooth sailing. Despite the boost from group company deals and strong domestic growth — India now accounts for 8.6% or $2.6 billion of TCS’s revenue — the company’s overall growth has slowed. TCS closed the year with $30.18 billion in revenue, marking a 3.78% growth in dollar terms, the slowest in four years. This slowdown highlights the complex global economic environment TCS operates in, where growth spurts in internal revenue must contend with broader market headwinds.

Conclusion

The remarkable growth in revenue from Tata Group companies reflects not just business synergy but the success of a coherent, future-forward strategy under Chandrasekaran’s leadership. As Tata Group ventures into new industries and continues its digital transformation, TCS stands to deepen its role as a strategic partner within the conglomerate. While external challenges remain, the internal momentum built over the past eight years offers a sturdy foundation for TCS to navigate the road ahead — a testament to the enduring power of the “One Tata” vision.