New customers lift TCS's profits

TCS is opening up service centres all over the world

A host of new outsourcing clients has helped Indian software giant Tata Consultancy Services (TCS) beat forecasts with a surge in profit.

The firm gained 58 clients and hired nearly 9,000 new employees, in the three months to 30 September.

That saw TCS, part of the Tata industrial conglomerate, make a net profit of $216m (£116m) in the period, up 44% on the same period of 2005.

TCS is benefiting as European and US firms shift jobs to India to cut costs.

Staff turnover

Together with rivals Infosys and Wipro, TCS is continuing to pick up more business.

Last week Infosys announced a 53% rise in its quarterly profits, with a similar tranche of new customers and rapid recruitment drive.

However, the growth in the companies' client lists has created personnel problems, as a shortage of skilled Indian workers has led to spiralling wage demands and high staff turnovers.

TCS claims to have the lowest turnover in the industry, at 10.6%.

It is part of the huge Tata industrial conglomerate, whose business interests range from engineering and energy to consumer goods.