According to Natarajan Chandrasekaran, Chairman, Tata Sons, multinational companies would spend large amounts in migrating their applications to the public cloud, benefiting companies like Tata Consultancy Services (TCS).

He explained that the urgent need for organizational agility and for enhancing consumer interactions in digital platforms accelerated enterprise decision-making, committing to potential technology investments across the all-encompassing hyperscaler cloud stacks.

In a letter to TCS shareholders, he noted that “this represents an essential inflection point in the business adoption of the cloud” and that “significant spending on moving workloads to public clouds would drive significant spending in the coming years.”

He explained that migrating workloads to cloud stacks is just the beginning of a company's digital transformation journey.

The analytics, machine learning, and artificial intelligence capabilities of these stacks would open up a vast array of possibilities for enterprises to explore new business models, target new consumer segments, according to Chandrasekaran.

In the letter, Rajesh Gopinathan, CEO, TCS said that the financial year 2021 will be remembered for companies committing future technology investments to cloud stacks and accelerating their calculated migration to cloud.

Customers were on multi-year technology refresh cycles, according to Gopinathan, and larger growth and transformation (G&T) deals were expected to provide TCS with strong growth.

“We see clear structural growth drivers in the medium and longer term, prompted by our customers' multi-year technology refresh cycle and increased emphasis on G&T initiatives,” he said.

He added that, in addition to broad outsourcing opportunities, the company's addressable market will be greatly expanded as restructuring opportunities develop.

“We are entering FY2022 with good growth momentum and far better potential growth visibility than we were last year, thanks to a strong order book built up over the year and a healthy deal pipeline,” Gopinathan added.

“The company's reliance on the cloud prompted several engagements around cloud migration, application modernization, and data modernization,” he said.