Driven by strong demand from U.S. businesses looking to slash costs, outsourcer Tata Consultancy Services on Monday said it became the first Indian service provider to book $1 billion in revenue in a single quarter.

The company said third-quarter revenue for the period ended Dec. 31 increased 41% year-over-year, to $1.1 billion, while net income rose 47% to $250 million. Also in the quarter, TCS landed two $100 million outsourcing deals and three $50 million deals, an indication that Western businesses are looking to place larger chunks of tech operations offshore.

Having booked $3 billion in revenue through its first three fiscal quarters, TCS is now on pace to become India's first $4 billion outsourcer. "The performance is even more noteworthy as it has taken place against the background of a rising Indian rupee," said S. Mahalingam, TCS's chief financial officer, in a statement. The rupee has risen about 5% against the U.S. dollar since August, increasing costs for Indian exporters.

TCS and other Indian outsourcers like Infosys and Wipro are benefiting from U.S. corporations' desire to cut costs by sending tech and back-office work to low-cost India. Service providers based in India captured 11% of all outsourcing revenue generated last year, up from 8% in 2005 and 2% in 2004, according to a survey released last week by market watcher Technology Partners International.