TCS in focus on multimillion-dollar deal with Ramboll, Accenture revenue guidance cut

Shares of TCS will be in focus on March after the company signed a multimillion-dollar deal to carry out the end-to-end IT transformation of Ramboll, an architecture, engineering, and consultancy company headquartered in Denmark.

“Over the next seven years, TCS will modernise and streamline Ramboll’s IT operating model to drive business growth and optimise the IT cost base,” the IT services giant said in a release.

Under this strategic partnership, TCS will also deliver services to manage Ramboll’s cloud and data centres, application development and maintenance, cyber security and digital workplace.

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It will help reduce costs and realise economies of scale within Ramboll’s IT estate by streamlining and consolidating the IT architecture and operations structure.

As a part of this deal, TCS will also induct more than 300 Ramboll IT employees in 12 countries.

TCS will also be in focus as Accenture trimmed its FY24 revenue guidance to 1–3 percent from 2–5 percent earlier due to further tightening in discretionary spends, especially on small deals. Accenture’s guidance cut, especially the tightening of discretionary spends, is slightly negative for the Indian IT Services companies, according to analysts.

Also Read | Accenture shares slump after cut in revenue guidance, sending Infosys ADR down 3.8%

In the previous session, TCS shares closed marginally higher at Rs 3,979.45 on the National Stock Exchange (NSE). So far this year, the stock has rallied over 4 percent, outperforming the benchmark Nifty 50 which has risen 1.2 percent during this period.

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