TCS Bags $1.2 Bn Outsourcing Contract

The few good men of India''s biggest IT company have silenced all skeptics who were doubting its growth potential.Tata Consultancy Services (TCS) has bagged $1.2 billion outsourcing contract from Nielsen partners, the largest ever-outsourcing deal for any Indian IT player.

TCS will integrate all of Nielsen Partners'' operations including service financing and HR needs. TCS will also take over Nielsen''s captive KPO in Baroda with over 350 employees.Revenues are expected to kick in as soon as the third quarter of this financial year, but what about the margins with rupee playing the spoilsport.The big-ticket deals are also flowing the mid-cap companies way. Patni Computers has just bagged $200 million deal from the UK-based Carphone Warehouse.Nielsen deal is important for TCS not only because of its huge size and scope of scalability but also because it pushes the company up the value chain and gives it a foothold in the consultancy space.