Further evidence of a recovery in demand for IT services came today as Tata Consultancy Services reported a jump in profits at the end of the fourth quarter.
The news comes after Infosys Technologies, India's second largest software exporter, reported 8.7% year-on-year growth in profit following an upturn in demand for services in Europe.
Tata Consultancy Services turned in net fourth quarter profit of $420m, up 9.7% on the previous quarter and 59.7% on the same period last year.
Revenues grew to $1,686m, up 3.07% from the third quarter and 17.61% year-on-year.
"Strong volume growth of 17% during the year has rounded off an exceptional year for TCS. Our sales and execution machine is primed and we have laid a solid platform for growth," said CEO and managing director, N Chandrasekaran.
For the full year, TCS net profit reached $1,450m, up 29.01%. Operating profit reached $1,680m, up 18.02%.
The company took on an extra 16,668 IT professionals during the year.
Chief financial officer S Mahalingham said, "While FY10 has been a challenging year, we have used this time to improve efficiencies and generate better returns by boosting margins. Our cost base has remained constant and we have leveraged this to support higher business growth."
Gartner has predicted 5.3% growth in worldwide IT spending this year as businesses and consumers step up their spending on hardware.