TCS beats Wipro to win lucrative contract with Thomson Reuters

09 October 2018 2 min. read

IT services giant Tata Consultancy Services (TCS) has been awarded a contract by global media and research firm Thomson Reuters to provide support in infrastructure management as well as application development. The total value of the contract is estimated to be Rs. 500 crore.

Thomson Reuters is a global conglomerate based out of Toronto with over 18 offices around the globe. The firm specialises in the domain of “intelligent information,” in addition to which it offers a range of services in accounting, legal support, tax strategy, and most prominently media and news.

The firm has been on an investment drive in recent years, ramping up its spending on key operations across the world. This is evident from its investment levels on capital expenditure for the last two years, which have exceeded $240 million for each year. Most of this expenditure is deployed towards digital enhancement.

To this end, Thomson Reuters spends approximately $500 million annually on outsourced IT services. The firm works with a number of IT giants from across the globe, including IBM, Microsoft and SAP. In India, the firm’s key IT partners include TCS and Wipro, the former of which has now beaten the latter to win a major contract with the firm.

TCS beats Wipro to win lucrative contract with Thomson Reuters

Estimated at Rs. 500 crore, the new contract involves support services in the infrastructure management and application development domains. Wipro and IT service management firm Mphasis were reportedly among the top contenders for the contract, but TCS emerged as the firm of choice for Thomson Reuters 

The contract is the latest in a string of projects that TCS has supported foreign firms with in India. The firm recently won a contract to help major oil company Total establish a digital innovation centre in the country, which was focused on developing technology-driven infrastructure designed around industry 4.0 capabilities.

To support this stream of business, TCS has been engaged in concerted efforts to develop its own digital capabilities. The most recent of these initiatives is the decision from the firm to offer double the usual entry level salary to fresh graduates joining the firm, applicable only to those who demonstrate particular skills in the digital sphere.

Thomson Reuters’ decision to develop its capabilities in the Indian market comes as little surprise, meanwhile, given that the media and entertainment industry in the country is set to skyrocket on the back of the rapid spread of digital access and the advancement of communications technology.