TCS partner search for government contracts gets investors thumbs up

Tata Consultancy Services is currently trading at Rs 559.05, up by 16.10 points or 2.97% from its previous closing of Rs 542.95 on the BSE.

The scrip opened at Rs 549 and has touched a high of Rs 562 with a low of Rs 545. So far 1,76,786 shares were traded on the BSE.

The BSE group ‘A’ TECk sector stock of face value Rs 1 has touched a 52 week high of Rs 1,054 on June 2, 2008 and a 52 week low of Rs 418 on October 27, 2008.

The BSE TECk index is currently trading at 2,062.47, up by 1.49% from its previous closing.

The scrip price has witnessed a correction of 2.12% since last week and an upswing of 7.55% since last month.

Tata Consultancy Services (TCS) is looking to partner with smaller overseas companies who can work with them for executing government contracts.

Considering the fact that government across the globe expanding spending on IT solutions, the company wants to grow its government solutions business with minimal increase in payroll costs. The company aims to do this by creating an integrated ecosystem of small and medium IT companies. TCS is working with four-five companies on government projects and have already created such an ecosystem in India

The IT services major is scouting for partners that can share resources such as manpower and the ones who can work with them on government contracts that it secures. It is already in various stages of discussion with potential partners in this regard.