It’s a wrap: News this week (Jan 4 – Jan 10)

There have been multiple developments this week on the tech front. From TCS’ quarterly results to Microsoft’s India investment, here is a list of the most important updates for a quick catch-up:

TCS announces Q3FY25 results

TCS reported a 6% increase in consolidated revenue from operations for Q3 FY25, reaching ₹63,973 crore, up from ₹60,583 crore in Q3 FY24. The company’s consolidated net profit rose to ₹12,380 crore, compared to ₹11,058 crore in the same period last year, with a sequential increase of 4%.

Despite Q3 being a typically weak season for IT companies, TCS experienced strong total contract value (TCV) growth, driven by investments in cybersecurity, artificial intelligence (AI), and generative AI partnerships. CEO K Krithivasan expressed satisfaction with the diverse TCV performance, which enhances long-term growth visibility. He noted a recovery in the banking, financial services, and insurance (BFSI) and consumer business group (CBG) sectors, alongside promising signs of increased discretionary spending.

Additionally, flying electric taxi and urban air mobility solutions provider The ePlane Company announced a partnership with TCS. The partnership is expected to create sustainable and scalable electric aviation solutions for passenger and cargo transport.

Microsoft’s $3 bn investment in India

Tech giant Microsoft plans to invest $3 billion in India’s cloud and artificial intelligence (AI) infrastructure as well as skilling initiatives over the next two years, chief executive Satya Nadella announced on Tuesday.

This move includes the setting up of new data centers as well as imparting AI skills to 10 million Indians by 2030. Speaking at the announcement, Nadella highlighted India's emerging leadership in AI innovation, stating, "India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country. These investments reaffirm our commitment to making India AI-first and ensuring that people and organisations benefit broadly."

Global tech companies expand base in India

Cybersecurity firm Rubrik has announced a new office in Bengaluru. The facility will combine product development, product management, customer support, and global recovery operations under one roof. Embassy REIT Leased 207,000 Square Feet to Rubrik at Embassy TechVillage in Bengaluru for this office. The company executive did not reveal the investment made towards this facility but said that it would cater to the growing workforce strength of the company. 

Further, US-based data centre cooling solutions manufacturer Vertiv has announced the expansion of its integrated business services centre in Pune. This new facility will function as a technology and innovation hub, featuring advanced laboratories and infrastructure, and will employ over 1,000 engineers to address global data centre needs.

Lastly, Eli Lilly and Company (Lilly), a pharmaceutical company based in the US, has announced the establishment of a new global capability centre in Hyderabad. The centre, called Lilly Capability Centre India (LCCI) Hyderabad, is expected to begin operations by mid-2025. 

MeitY releases AI governance framework

The ministry of electronics and IT released ‘Report on AI Governance Guideline Development’ this week that outlined. One of the highlights of the report was establishing an advisory group chaired by the Principal Scientific Advisor. This group will undertake the development of ‘AI for India-Specific Regulatory Framework', besides a subcommittee that will provide recommendation for AI governance in India.

In the context of AI Governance in India, the report emphasises the need for a coordinated, whole-of-government approach to ensure AI compliance and governance as India’s AI ecosystem grows. It presents six key recommendations to operationalise this approach. The deadline for public inputs on the report is January 27, 2025.