How Is Tata Communications Strengthening Its CX and Platform Strategy?
Tata Communications has been sharpening its position as a digital platform and customer experience enabler, beyond its legacy connectivity franchise.
The latest inorganic move in CX technology signals a deeper focus on value-added services that sit on top of its global network and enterprise relationships.
Macquarie’s latest note underscores how customer experience, cloud communication and AI-led platforms are becoming the next growth pillars for Tata Communications, even as certain legacy businesses still weigh on segment profitability.
Macquarie on Tata Communications
🔹 Rating: Outperform
🔹 Target Price: ₹2,210 per share
🔹 Thesis: Deepening CX suite and scaling platforms to complement core connectivity business.
According to Macquarie, the acquisition of Commotion Inc is expected to strengthen Tata Communications’ customer interaction services, especially when integrated with Kaleyra’s existing communication stack. This helps the company move higher up the value chain in AI-led CX and omnichannel communication.
| Aspect | Comment |
|---|---|
| CX Suite | Commotion products to be integrated with Kaleyra for richer customer journeys. |
| CIS Segment | Still a drag on profitability but expected to improve as platform scale rises. |
| Investment View | Rating retained with focus on execution in CX and platform monetisation. |
The report notes that while the core connectivity franchise remains steady, investors should closely watch how quickly CIS and CX-driven revenues can scale and reach sustainable margin levels. The long-term story is tied to Tata Communications’ ability to move from bandwidth seller to a full-stack digital experience provider.
|
Strengths
🔹 Global enterprise connectivity footprint. 🔹 Strategic CX and communication platforms in place. 🔹 Ability to cross-sell services to existing clients. |
Weaknesses
🔹 CIS segment still weighs on overall margins. 🔹 Integration and execution risks post acquisition. 🔹 Competitive CX-tech landscape with global players. |
|
Opportunities
🔹 Rising demand for AI-led customer engagement. 🔹 Cross-sell potential across telecom and CX services. 🔹 Enterprise digital transformation tailwinds. |
Threats
🔹 Pricing pressure in communication platform space. 🔹 Faster innovation by competing CX and CPaaS vendors. 🔹 Slower-than-expected ramp-up in new products. |
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, would typically treat such platform-led stories as medium-term compounding ideas where execution quality matters more than short-term price swings. Broader index and sector cues, along with stock-specific levels, can always be tracked through Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Tata Communications and CX Platforms
🔹 How does Commotion integration benefit Tata Communications?
🔹 Why is CIS currently a drag on margins?
🔹 What role does Kaleyra play in the CX stack?
🔹 How relevant is AI-led CX for enterprise customers?
🔹 What are the key risks to Macquarie’s Outperform call?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations. Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
