TCS looks to double its India revenues to $1bn. Now we are talking.

TCS is looking to double its India revenues in the next 3-4 years. It has earned $500 million in 2008-09 fiscal and wants to make it $1 bn in the next 4 years. From the way things are going for TCS I don’t see a problem. Geographically India contributes 8.2% of TCS’s total revenues.

Indian IT companies are used to target high-end customers with high dollar rates. Top tier companies are notorious for this. That would make Indian markets less lucrative as the payments will be in rupees and not dollars.

As I have argued earlier too, Indian IT needs to look at India itself to increase their revenues. Indian market is largely untapped as far as IT goes. Most of the major IT projects are from the government, which are being taken care by the Indian IT companies.

But the private sector is tapping foreign players. Not sure what could be the reason for this. It could be a first mover advantage or it could be cost. Bharti Airtel has outsourced most of its operations to IBM. It has also received a contract from HDFC bank and Indian co-operative bank.

To me these are the clear projects, which should have gone to the Indian IT companies. Now, don’t get me wrong here. I am not arguing that Indian IT projects should only go to Indian IT companies and we need to have a Buy Indian clause. That would be stupid of me after I have argued against what the US was doing.

What I am really saying is for TCS or HCL to de-throne IBM from being the leading vendor in India. I am not talking about Infosys as it still too far down and less than 1% of its revenues come from India.

As TCS has emphasized, every Indian IT company should look to double its revenues from India.