Analysis of The Tata Consultancy Service

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AnalysisoftheTataConsultancyService
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Analysis of the Tata Consultancy Service

Published: 23, March 2015
Tata Consultancy Service (TCS) is the world's leading global Information Technology
consulting rm and business outsourcing organization that envisaged and forged the
espousal of the exible global business practices, which nowadays facilitate
organizations to manoeuvre more professionally and construct more value.
The IT industry was not has it is now when TCS started in the year 1968. TCS was started
as the "Tata Computer Centre" a dissection of the Tata group whose chief business was
to oer computer services to other concerns. TCS marked a tremendous growth with
marking its presence in 34 countries across 6 continents, with a absolute range of
services across diverse industrial elds. TCS ranked in top ten in the fortunes rank list for
the year 2009. The concern shaped consolidated income of US $5.7 billion for economic
year ended 31 March 2009 and is listed on the Bombay Stock Exchange and National
Stock Exchange in India.
TCS expanded into China, Hungary, Brazil, and Mexico in order to incarcerate the
opportunities in nancial services and services like Remote Infrastructure management
and BPO in those countries, TCS always oered a unique manner to its global customers
by positioning its brand in the worldwide market. The zenith of all these lead to the
concern's contributions of TM Global Network Delivery Model(GNDM) across Europe,
China, India, US and Latin America as well as incorporated full overhaul oerings, all
backed by the promise of certainty of experience for customers. By 2007, the value
enunciation of "Experience certainty" was ocially initiated, acknowledged and
authenticated by global customers.
As the Indian nancial system sustained to grow in the new century, the necessity for
technology to constrain comprehensive augmentation became part of national schema.
TCS, which had been spending additional, time in domestic IT from the time when its
commencement was well located to assist the National Government at the central and
state level, in its inventive proposals. TCS, by its own initiative shaped a digitized delivery
system. In a manifestation of the company's ground-breaking spirit and with an
aspiration to extend the benets of the IT upraise across the country. TCS aptitude to
convey high-quality overhauls and resolutions are matchless. It is the world's rst
organization to accomplished an enterprise-wide Maturity Level 5 on both P-CMM and
CMMI, using the most meticulous assessment methodology - SCAMPISM. TCS Integrated
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Quality Management System integrates process, populace and technology maturity

through various ascertained frameworks and traditions including ISO 9001:2000, IEEE
and SW-CMM, CMMI, 6-Sigma and P-CMM.
For maximum exibility, speediness, and competence, a vigorous IT strategy is essential.
TCS contribution facilitates companies to construct the most of their IT investments
from providing system testing solutions, application development, management
services, and integration solutions.
COMPANY BACKGROUND:
TCS has the wide spread economical boundaries around 36 countries with seven
physical centres of operations around the world. TCS was founded by Tata group which
was established by jamstji Tata in 1868 an oldest and respected group of companies in
India. The First chairman was Jahangir Ratanji Dadabhoy followed by Nani Palkhivala.
The rst general manager was F.C. Kohli.
TCS rst assigned to oer punch card services to a sister corporation, Tata Steel (TISCO).
It later bagged the nation's rst domestic software project, the Inter-Branch
Reconciliation System (IBRS) for the Central Bank of India. It has also provided bureau
services to Unit Trust of India; as a result TCS became one of the rst companies to oer
BPO services. In the early 1970s; Tata Consultancy Services in full swing exporting its
services. TCS's inaugural global order came from Burroughs, one of the rst business
computer manufacturers. TCS was assigned to write code for the Burroughs machines
for numerous US-based clients. This knowledge helped TCS to bag its rst onsite project
- the Institutional Group & Information Company (IGIC), a data hub for ten banks, which
served to two million clients in the US, TCS was assigned to assert and upgrade its
computer systems. TCS holds the credit to set o the rst software research and
development centre, the Tata Research Development and Design Centre (TRDDC) in
1981and in 1985 the rst client committed oshore development centre was established
for Compaq.
Early 90's was golden era for the Indian IT industry; they grew tremendously due to the
Y2K virus and the introduction of Euro. TCS lead the way for industrial unit replica for
Y2K conversion and built-up software tools which undertook the automatic conversion
process and facilitated third-party developers and customers to use. In 1999, TCS
fortied the opportunities in outsourcing the E-Commerce and the connected solutions
and set up its E-Business division with ten people. In 2004 it illustrated a vigorous
development of contributing half a billion US dollars to TCS's total revenue.
In the year 2004, TCS was ranked under public sector, though much later than its
competitors such as Infosys, Satyam and Wipro. TCS entered into a brand new area of IT
services (Bioinformatics). The next two years that followed TCS aced a huge growth in
progress both nationally and internationally.
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TCS assists some of the world's major MNC's to take up the accurate technology-enabled
solution that helps them:
Optimize business recital
Decrease product progress time
Get better product dierentiation
Smooth the progress of arrangement of business with technology
Join their extensive supply chains
Oer real-time business handy
Lesser functioning costs.
Tata Consultancy Service Prole:

Type: Public BSE: 532540
Founded: 1968
Headquarters:
TCS House, Rave line Street, Fort, Mumbai
- 400 001 India
Key people:
Ratan Tata, (Chairman of the Board, Tata
Group)
S Ramadorai, (CEO and Managing
Director)
Jobhi Mahalingam, (Executive Director
and CFO)
N Chandra, (Executive Director, COO, CEO
& MD Designate)
Phiroz Vandrewala,(Executive Director
and Head, Global Corporate Aairs)
Ajoy Mukherjee, (Vice President and
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Head, Global Human Resources)

K Anantha Krishnan, (Vice President and
Chief Technology Ocer)
Services:
Information Technology Consulting, IT
Services, Outsourcing, BPO, Software
Products
Products:
TCS Bancs, Digital Certication Products,
Healthcare Management Systems.
Revenue: US$ 6.019 billion (in FY 2009-10)
Net income: US$ 1.128 billion (in FY 2009-10)
Employees: 150,000 (As on 1 April, 2010)
Website: http://www.tcs.com
FINANCIAL POSE:
TCS nancially persists to demonstrate the steady stand in the top position of Indian IT
rms. As the IT outsourcing market records more rapid growth pace, TCS expressed a
steady growth rate in 2008-09, whose consolidated revenue grew by 23% to 27% which
helped TCS to cross the $6 billion revenue milestone. TCS operating margins improved
to 23.73% by 109 basis points.
Source: squibd.com
TCS have also increased its dividend share to Rs.14 in the last nancial year. The TCS
directors have also recommended an issue of bonus shares in 1:1 ratio and it was the
second bonus issue since 2004. TCS completely focused in helping their customer's
relationship with them simultaneously adding fresh customers and penetrating in novel
market segments and emerging verticals which made them to add 163 new customers
internationally in the past year. TCS's foremost market North America crossed new high
point of revenue above $3 billion and grew 26% in 2008-09 in spite of recession, While
Europe's branches faced a express growth of 38.5% during the same year. It is very
signicant for an organization to certify the dierentiation of its revenue stand and to
uphold its augment impetus.
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TCS always delivers that the 143,000 TCS employees are the supreme assets of all which
includes 50,000 global associates from 67 countries and TCS trained 93,000 software
professionals of which, 22,000 college graduates in the past academic year which was
tremendous growth. TCS is incessantly investing to unlock new markets and services
which made them to invest in emerging markets like Asia-pacic, Middle East, Africa and
Latin America. The rm's gigantic team of human resources is serving the TCS's
panorama not only in business but also its contact on the community. TCS made an
eective evolution in corporate sustainability.
Source :( squibd.com)
TCS persists to be a pioneer of growth for the reason of its established ability to reinvent
the business and organisation. The concern is placed to exert in collaborative mode,
signicant assessing all that TCS does. TCS holds a strong position in the future IT global
market.
ORGANIZATIONAL STRUCTURE:
"A basic structure distributes responsibilities among the members of a company. Its
purpose is to contribute to the successful implementation of objectives by allocating
people and resources to necessary tasks and designing responsibility and authority for
their control and coordination" The three levels of organizations are technical level,
managerial level and the community level. (Mullins, 2008) The organizations are
dierentiated based on the task, the employees work and the nature of company and its
HR policies and conditions." A hierarchy is handled in order to treat people equally in
companies; Treating equal is just that they are literally equal, In order to extract best
from an employee, the person above him will treat them as one and the same to extract
the maximum and best work from them Functional organization,matrix organization,
andline organizationare three common types of organizational structure" (Mullins,
2008). The main intention of organizations is to distribute the tasks; the main aspect is to
preserve the relationship between employees of dierent stages in order to drive them
towards the single task and to monitor the progress of the assigned task. The TCS have a
very well designed organization.
The organizations can be classied into two main divisions they are
Centralization.
Decentralization.
Centralization
A simple and eective execution of policies for an entire organization.
Gives a reliable approach over the organization.
Makes trouble-free organization and administration control
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Better employ of specialization including better amenities and paraphernalia.

Decentralization
Facilitated verdict is to be nearer to the operational level of work.
Amplied receptiveness to local conditions.
It persuades inspiration and condence of the sta.
Observance progress in compliment and more supple structures.
TCS oers services in eight areas of service: Business process Outsourcing, Business
Intelligence and performance Management, Enterprise Solutions (CRM, ERP, and SCM) IT
Consulting, Application Development and Maintenance, Engineering and Industrial
Services, IT Infrastructure services, Testing and quality Assurance. TCS's are divided in
following divisions Financial Services, Energy and Utility, Banking, Life sciences and
Health care, Insurance, Securities trading system, Retail and Consumer goods,
Telecommunications, Government and Transportation.
TCS follow a standard organizational growth which helps them to organize the vast team
under single board of directors; the type they follow is matrix organization.
"The matrix organization is a combination of functional departments which provide a
stable base for specialized activities and a permanent location for sta and units that
integrate various activities of dierent functional departments on a project team,
product, programme, geographical or systems basis" (mullins 2007).
(www.tcs.com)
DIS ADVANTAGE
ADVANTAGE
More involvement can cause aggravation and uncertainty among team members.
Adequate meeting makes this type more time consuming.
A detailed understanding is needed in order to be a part else result in bad performance
which aects the total team work.
A very good ability is needed in order to perform better and draw attention.
Distribution of possessions is supple among the organization.
Facilitates in intricate verdicts and appropriate for recurrent transformations occurs in
unbalanced atmosphere.
To meet demands from customers and helps to make unity within the team.
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Provides an opportunity to extend both practical and product skills.
ORGANIZATIONAL CULTURE:
Even though the organizational culture will look like a similar saying it's really solid to
describe and elucidate as the word culture is derived from anthropology. In simple it can
be described as the reection of fundamental works about the way by which the work is
performed.
"The collection of traditions, policies, value, attitudes and beliefs that comprises an
invasive framework for everything we do and believe in an organization" (Mullins, 2008).
The corporate cultures can be categorised by two inuential factors,
The degree of threat coupled with the organization's manners
The pace at which organisations and their employees obtain comment on the success of
verdict or strategies.
If the customs are adopted by the employees, it amplies the supremacy and rights of
management in three ways.
Categorizes themselves with their organization and consent to its decree when it's the
dened fascination to do.
To integrate the organization's worth when they are right.
Enthused to accomplish the organization's objectives.
The types of Organizational culture are Power culture, Task culture, Person culture, Role
culture.
A well-built organizational culture lies on eight strong pillars of "OCTAPACE" referring to
authenticity, confrontation, autonomy, openness trust, proactive, collaboration and
explicitness. Organization cultures can be categorized into strong and weak cultures.
The organizational culture of TCS is translucent in stipulations of pay and its HR policies.
There is a towering level of employee engagement as the concern pay structure
stimulates and supports employees to achieve better to receive an excellent sum of
their recital pay. There is an incessant improvement and growth of workforce through
dierent modus operandi like the T model. It is a prociently managed organization with
client fullment as its top most precedence.
Workforces are given lofty sum of respect and everybody is addressed as an
"ASSOCIATE" to make them believe that their input really matters. But there are some
minorities who believe that TCS follows a cold culture, by cold they signify that persons
are not concerned about others. Few think that TCS has an energetic culture and there
are lots of communal performance which the concern takes on to help the
underprivileged and poor. One such initiative is the TCS Maitree, it is a non-prot
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auxiliary of TCS which utilize the employees to approach further on and educate the
under privileged children or seize a camp in a country's rural area to educate them
regarding the knowledge on computers. PS - T Model is new software intended by TCS,
all the workers information pertaining to his possession, competencies, skill set, etc are
fed and then the software gives the three best domains where the employee would best
be suited. This model when launched will help in smooth inter- departmental relocates.
TCS values are ethical, in which TCS have its own set of rules, policies, values which is
called "TATA Code of Conduct" which was explained by HR with immense eorts during
induction process, in easy words it can be described as that "TCS is not doing business
from people but doing business with the people". The TCS's culture is dynamic and
favourable for vigorous growth and antagonism.
THE NATURE OF ORGANIZATIONAL CHANGE:

"Change is persistent manipulate. It is an unavoidable part of both social and
organizational life and we are all subject to continual change of one form or other"
(Laurie j Mullins 2008)
There are factors which are substantial to the organization change are
Global ination and economic meltdown.
Non-availability of resources.
The limitations on products lifecycle due to frequent revises in technologies.
Very high competition in escalating and capturing new market places.
BUSINESS STRATEGIES:
TCS names its business divisions as Industry Service Practice. TCS has it maximum
revenue from Banking Financial Services and Insurance Sector.
GENERIC BUSINESS STRATEGY:

Low outlay of Global delivery 24X7 model.
Delivery with the help of established release and excellence framework-IQMS in time.
A whole focus on customer retention and client relationship in order to uphold the
business revenue which is 95.6%
Distinguished in low end services in both capital and price
A solid protection from the money uctuations with currency prevarication.
Owing to its tough knowledge management system and resource strength, TCS has been
triumphant in attaining the cost leadership in the Industry.
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In recent years TCS has been following a further resolute strategy where they are
moving towards the requirements of customer and the nature of business as like Middle
East, Europe, and Asia-pacic. TCS focus much on customers and the area rather than
being broad.
A full Focus on the centres of Excellence(CoE) to strengthen potential in order to build
the state-of-art elucidation in particular technologies such as testing, virtualization and
architecture. The high end skills and scale will help TCS to embark upon huge projects
aimed at converting clients, IT applications and Infrastructures.
GLOBAL STRATEGIES:
When the global strategy of TCS is being closely observed, it will illustrate an inuencing
labour cost in South America, China and some parts of Europe. Employing overseas
experts into the post of Directors in order to obtain the frequent changes in the
business is also can be referred as one of the key strategies of TCS
Clayton M Christensen(HSB Professor, joined TCS in 2006)
Dr. Ron Sommer (former chairman of the board of management of Deuteshce telecom
AG, joined TCS in 2006)
Laura M cha (Member of Executive Council of the Hong Kong special Administrative
Region(SAR) and Non-Executive Chairman of HSBC investment, Asia ltd)
TCS have a keen view in looking US and UK for the Business Revenue markets and India
for the skilled employees. TCS is very keen in establishing global delivery centres outside
India which can demonstrate TCS as a Global company. TCS was the rst one to set the
global delivery centre in China which distinguished TCS from other corporate
companies. In recent years TCS was frequently changing its approach towards global
market; recently TCS reconstructed its structure towards its global operations to
implement a Customer centric and integrated approach which is anticipated to assist in
avoiding the risk factors arising from the Economic Meltdown in western countries. TCS's
operation units are mainly divided into ve main divisions.
The well established markets are North America, U.K and Western Europe and the new
markets are Latin America, Middle East, India and Eastern Europe. The new restructured
plan was considered as the very good change by the TCS as it is attaining impetus in
Europe and other markets, which is obvious in the company's marked growth rate of
40% every year. The operations In Middle East and Latin America had also seen a
substantial growth. TCS had built new delivery and oshore centres in Latin America like
Uruguay, Mexico and Brazil.
STRATEGIC ALLIANCES:
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TCS is always keen in upholding the strategic relationships with various International
technology vendors. These relations are distinguished in various magnitudes such as
service provider, customer, supplier, and alliance partner. The relationships with the
international technology vendors have made TCS to maintain a holistic. TCS made a joint
venture with these vendors on joint research inuencing each other strengths to
research and to develop the best breed oerings.
Joint advancing engagements.
Signicantly new or improved solutions.
Joint go-to-market strategies for the solutions.
ACQUISITION STRATEGY:
TCS is concentrating the growth in two ways the organic means and inorganic means.
The Inorganic way is in the course of acquisitions of companies which craft business
sense to TCS. The concerns should adjoin great value to TCS. The Business with CMC is
assisting TCS taking a very sharp gaze to the domestic Industry. Both companies have
synergies in the government sector. They made various agreements with various
companies some of them are the agreement with the citi group to transfer 12,000
employees in banking sectors for cash and external support in IT. Tata InfoTech Limited
(TIL) was merged in early 2006. It was also a software service company like TCS which
have branches around the world like America, Europe and Australia. Comparable to the
nancial venture made greater than, TCS yet again prolonged its banking commodities
and shared its European operations after attaining a 75% equity wager in its
Switzerland-based partner, TKS-Teknosoft. TKS was the marketing representative for TCS
in Europe.
TCS: CO INNOVATION NETWORK (COIN):

TCS is following a coin strategy in order to face the competition as the globalisation has
created a elevated competition among the IT companies. It is necessary for the IT
companies in order to follow an innovative technology thus resulted in the Advanced
Information and Communication Technology which made practicable for companies to
collaborate and perform "Globally Distributed Network (GDN)". Disorderly
improvements are not the consequence of a solitary technology pretended by the
minority of people but the combination of similar technologies may result in getting a
combined innovative technology which will be much more eective and useful for the
companies to perform globally. This concept of innovation network is not novel;
classically it was the technology releasing body e.g. IBM's driven Innovation Networks
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and Google's Gartner Innovation networks are already been in existence, for TCS it is the
customer driven innovation network where the participants are delivery rudiments and
explorations.
SWOT ANALYSIS:
SWOT analysis is a prearranged loom to calculating the strategic position of a business
by identifying its strengths, weakness, opportunities and threats. SWOT oers an
uncomplicated way of analysing the results of marketing review. Internal strengths and
weakness are abridged as they communicated to external opportunities and threats.
(Jobbers; 2007)
It analysis the complete strategy of the company based on policies and the business
method which they follow. This pictures the companies advantages and disadvantages
in companies perspective.
The SWOT for TCS is as follows,
STRENGTH
widespread universal reach
Strong economic presentation
Human management skills
Innovative lab system
The Fame of the founder
WEAKNESS
Momentous publicity to nancial service markets.
Decient in level of consulting operations.
OPPURTUNITIES
Expansion in worldwide IT services
Focus on SMB segment
Expanding maneuvers in countries like china
Focus on high end business and consulting
THREATS
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The Hike in Employee costs

Powerful competition from overseas rms like Accenture, IBM etc.
Merge in the end markets
Currency gratitude
Increase in competition from low wage.
STRENGTHS:
The popularity and the reach all over the global markets made TCS a reputed and known
rm in the Global IT Market. The TCS had launched the branches all over the world
which can be considered as the primary strength for the TCS. TCS made clear and strong
economic presentations around the globe which makes its clients a nancial condence
about the company. The International base of TCS, India is known for its skilled
employees in IT eld which naturally made TCS very strong in Human resource. TCS is
also skilled in the management skills as its board of directors are from overseas
countries in order to adopt the strategies from all the parts of the world. TCS have a very
good infrastructures and innovative labs with all the latest technologies which help TCS
employees to update the latest technologies and to make research in various elds. The
fame of the founder is also an added strength for the TCS.
WEAKNESS:
The excess exposure on the nancial service markets which usually need to be kept
condential is considered as the main weakness of TCS. TCS is also lack in eective
consulting team which show a strong reection of decline in the growth cycle of the TCS,
Being a company which works on Outsourcing projects usually needs a very good
eective consulting team which acts as the bridge between the clients and company.
TCS really lacks in that.
OPPURTUNITIES:
TCS being a fast growing IT rm is very keen in establishing and expanding its business
to almost all the parts of world right from India, China, Latin American countries, Asiapacic and etc which opened up a great business opportunity for TCS. The Focus in the
SMB segments is also lays a very good business opportunity for TCS. Expanding the
global branches to void countries like china, Asia-pacic will extend the business
opportunities of TCS in future. TCS have a very good opportunity in high end business
and consulting in the future if they rectify their weakness in consulting service.
THREATS:
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The rapid growth and development in India and other global areas, A common demand
for employees arise which result in the increase of cost for employees. TCS has to face a
very high competition from overseas and well established companies like IBM,
Accenture and etc. The complete merge in the End markets is also a biggest threat for
TCS. The advantage on rupees always stands as the biggest threat to all IT companies in
general. Increase of competition from low wages is another threat. The similar Indian
rms like Wipro, Infosys are also at their full phase of capturing global markets. TCS has
to face a cold war against the threats which the company faces. As all the competitors of
TCS are equally strong and eective in which TCS can't ignore the supple one.
PORTER'S ANALYSIS ON TCS:

Porter's tool will help to analyse the main ve competitive factors which aects the
company's growth
("www.emeraldinsight.com)
Being TCS itself is an supplier, it do not have problem with the suppliers, the other four
forces which are problematic to TCS are the threat of new entrants, the bargaining
power of customers, the threat of substitutes and the spirited rivalry between the
existence.
In the untimely days the software exports, the software wholesale market was
overlooked by very few massive like Accenture, EDS and IBM, where the Indian concern
were outlined as small level companies in result the TCS and other Indian software
companies competed themselves in the lower end of the business, which resulted TCS
and other organizations to choose small projects and tasks which are simple to do.
TCS also faced a customer market that was conquered by the insurance companies and
huge banks. While TCS keenly hunted for alliances with larger sellers as a competitive
strategy, TCS most successful approach was to honestly loom clients and admit the
minor charges that its competitive pose dictated.
The entry of new companies have reduced rapidly as the huge companies like TCS,
Infosys and Wipro have developed and grown huge in their market share, size and
reliability with their customers. Though, the companies struggle to decrease their
straight rivalry through demarcation of manufactured goods, in every market there has
been enormous competitors.
TCS has to work seriously upon reducing the bargaining power of customers. TCS can
prevent price strategy in mixing up with purchase decision. It means that TCS should
bring more than undierentiated indoctrination by moving up the cost sequence. Such
approach might be dicult in the software outsourcing business as the clients have an
in-depth domain enterprises and rights of inclination to hold on to the work allocated
under considered consulting. The clients very well know that the complete bargaining
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power lies in the strategic consulting; outsourcing that may reduce their bargaining
power. TCS have to build up enough knowledge so as to construct outsourcing these
errands a convincing worth plan. Of course, it is exactly in this empire that the
multinational outsourcing rms such as Accenture, IBM, and EDS are the most vicious
customers.
Falsifying groupings are often viewed as a superior approach to oset client's bargaining
command. Though, constructing alliances with companies functioning in client's sites
have to be low-priced as this would advance focus on TCS in application progress. On
other side, the attainment of a medium-sized US rm with sturdy customer relations
and domain expertises could oer a striking opportunity. Even if expenses per employee
would increase, the go up would be minute since workers needs are lesser for higher
value-added jobs.
The main anxiety for TCS is opposition from existing companies like Wipro, Infosys and
CTS as it has produced rivalry for active dealings and twisted noteworthy pricing stress.
Internationally, Companies like EDS have sited themselves as competent of handling
huge, "turnkey" ventures which can distinguish themselves from contestants such as
Accenture and IBM that spotlights on superior value-added jobs such as consulting. This
proposes an organically-driven expansion strategy for TCS: as TCS should persist to do
the similar sort of job that it presently do, but should attempt to arrest a better section
of the value-addition by accepting huge projects. Although it has exhibited a potential in
distant project management, TCS would be requisite to increase the same capability.
But, there are also few risks which prevail in this strategy. TCS's huge dimension implies
that it might have already exploited wealth to amount in applications improvement.
Adding to that, the strategy may tender the latent for huge growth since it essentially
engages elevated value-added actions. Before, this was hard, partially owed to the
technical complexity in rejecting the value-chain away from the modularization of
appliances programming. In recent years, though, systems design, manufacturing
services, and systems integration job have increasingly been outsourced suggestive of
that, if the abilities are at hand, those works could be completed in India.
The threat of substitutes are mainly from the China, Philippines and eastern Europe
which emerge as a biggest threats to the Indian IT companies, which is mainly due to the
low cost. The companies from these countries quote very low price for the same quality
of products as the Indian Companies do, which creates a great impact on medium to
long term projects. It is dicult for TCS being operated from India to attain the organic
growth.
As the globalization is at its peak growth TCS view on competitors should be broad and
eective. The domestic competitors itself is capable of oering a strong competition for
TCS.
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The uncontrollable fact that IT companies face globally in the competition is the
bargaining power of customers as the increase in the competition and globalization
resulted in the production of quality products with low price which nally makes the
customer to gain the maximum prots. As the IT global market is broad with very high
competitors it is unavoidable to prevent the new entrants into the market. The TCS may
not have competition in the domestic market but globally TCS is still viewed as the
company which works low- level projects.
PESTEL ANALYSIS:
Pestle analysis will analyse the organizations political, economic, socio-culture,
technological, Environmental and legal analysis of organizations. The TCS being a Multi
National company, these changes will aect the company's strategies.
Political:
The three major revenue zones of TCS are US, Europe and India. The political structure
in India is constant as the ruling party started to rule again after a majority win in the
2009 General Election which is a positive view for the company as the political inuence
will remain constant in this zone. In US the government had announced a new rule on
outsourcing as the companies which outsource the work outside US; they will not get
the Tax benets which even creates a negative phase. TCS is very well established in US
as it can work from US itself, But even then the ratio of outsourcing the new projects will
be much reduced in future. The government organizations and PSU had decided to give
more domestic projects to TCS which is positive strategy.
Economic:
The Steady uctuation in the International market and the uctuation in the country's
currency rate are considered to be the major negative inuences. The Global meltdown
which paused the IT's vigorous growth had reduced the IT business internationally. But
even then the TCS and other rms where managed to maintain their breakeven prots.
The Domestic Markets had grown by 20% and approximately reached USD 25 billion in
2009-10 which was estimated by NASSCOM which is an advantage for the Indian
companies in order to maintain the equilibrium. The crash in the Real estate market is
also considered as one of the advantages for the companies as they can buy sites for
new branches for lesser rates and the reduction in the Rental costs. The rapid increase
in the complexities in IT Industry, the new innovative services and products from
competitors. The new competitors entering the IT market is not a very big threat but also
to be taken in account.
Social:
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Social:
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English is taken as the ocial language of TCS which made the organization to make the
business dealings with the English speaking nations like US and Western Europe. The
manpower available in India is an added advantage for the Indian IT rms. The
availability of Technicians in India is bit more than the resources available to the other
countries. India is going to lead the next twenty years of spam for holding the highest
working population globally, which is a major advantage for all the IT companies. The
recent job cuts in US and other European countries where TCS widen their business
boundaries which lead to give new job oers to the native peoples, which created a soft
bond towards the company. The availability of high quality manpower globally, the
frequent and rapid transform in consumer lifestyles, the improvement in the
relationships between the clients.
Technological:
India is considered to be a well developed country in the telecommunication eld which
provides the lowest call rate(1-2 US cents)which makes Indian rms like TCS to thrive
high in the eld of BPO, as the core of these business is to communicate among
customers and company representatives. India holds the largest population with
mobiles and an average population expected to have the subscriber base of 503 million
the end of 2010. TCS holds its global head quarters in India which has the highest
telephone network after china.TCS is much more concentrating in the next generation
on wireless which the global technology is attracted towards that.
Strategic Partners
Microsoft - Global System Integrator Partner
IBM - Global System Integrator Partner
Oracle - Global System Integrator and Global Certied Advantage Partner
SAP - Global Consulting Partner
Growth Engine Partners

Siebel - Consulting Partner
SUN - System Integrator Partner, GSS Partner
BEA - TCS is BEA' Strategic Partner
Web Methods - Global System Integrator, Preferred Oshore Partner
Legal:
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IT rms in India is frequently facing the legal issues from the employees and other
mutual competitors, Each Indian IT Company is extended their boundaries globally and
have their own global HR policies, all the IT companies including TCS have undergone
the issue of legal bonding made to make the employee to stick into their companies for
long term which is an negative aspect on TCS. Except in US TCS is getting tax benets
globally.
Environmental:
The
Environmental concern of TCS shoots from the Tata Group which is also added in
the "Code of Conduct". TCS considers the change in the climate is considered as the
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main aspect which aects the economic stabilities. TCS is much more concentrated on
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TCS
UK division and its subsidy is focusing on the Insurance market in the BPO, the
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Diligenta's deal with the pearl conformed their future plans of entering into the
Insurance Industry. TCS is planning to expand further in the globally in order to capture
new markets like China, Philippines, Asia-pacic, South America, Mexico and Eastern
Europe. TCS has invested around INR 500 crore in India in order to develop its domestic
infrastructure within India. TCS has invested around approx 150 billion in order perform
research on next generation technology and wireless
"We are strengthening our product line-up to position the company for the future,
(Mr.Ramadorai, CEO)". As the CEO of TCS said TCS has invested an respectable amount
of money in order to strengthen their product line-up
RECOMENDATIONS:
The rst and prior recommendation is to change its vision statement as it views and felt
like a short viewed, as TCS should need a vision which reects vigorous thinking and
enduring thinking. Anticipate observing the site persist to merge. Customers will hunt
for reducing expenses and focus on less supplier relationships as the market
deteriorates. TCS should take this occasion to get better its market positioning. Certify
promotion communicative it's worth intention to all stakeholders fretful led. In market
Meltdowns, marketing can work as a dierentiator.
TCS should alter focus from Low cost advantage to high quality services imposing a
quality being the initiator in the industry. Oer more high-end works in price chain.
Rapidly adjust and expand client assurance in high growth markets. In Financial Year
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2009, Indian home market grown by more than 20%, as well as TCS income from India
augmented only by 6.46%. TCS should inuence its success (IRCTC success done by its
subsidiary - CMC, Passport project etc.) to constrain the augmentation in this market.
TCS should not be inuenced exclusively by short-term shareholder pressure. The
depression is at the top of each company's schema, but those suppliers that receive a
long-term outlook will employ this occasion to organize for the primary modications in
business dynamics that will appear. Those suppliers geared up for the recent ecosystem
will be the ones to prosper once the dark part of economic chaos have lifted.
CONCLUSION:
TCS founded as the small computer centres now emerged as a very big multinational IT
company in the span of 40 years. TCS which is considered as the one of the oldest and
biggest MNC from India is still growing in the spot-light with a new dimension. The roots
of TCS are also can be taken in account for this massive growth. The growth of TCS in
global market creates a positive impact on India and Indian economy.
REFERRENCES:
David Jobber (2007) 5thEdition edn. Principles and Practice of Marketing. : Mc Graw-Hill
Education.
Laurie J.Mullins (2008) second edition edn. Essentials of Organizational Behaviour.
England: Pearson Education Limited
Open university (1993) ed. by Christopher Mabey and bill mayon-white Managing
change. England: Paul chapman publishing ltd
Robert A.Paton and James McCalman (2008) Change Management-A guide to eective
Implementation. London: SAGE publications limited
Esther Cameron and Mike Green (2004) 2009 edn. Making Sense Of Change
Management. London: Kogan page limited
George Blair and Sandy Meadows (1996) A real life Guide to Organizational Change.
Hampshire,England: Gower publishing Limited
DQindia (n. d.) INDustry market [online] available from
<http://dqindia.ciol.com/content/industrymarket/datastock/2005/105062702.asp> [2005-10]
all business (n. d.) TCS Apprisal [online] available from
<http://www.allbusiness.com/glossaries/organizational-structure/4943569-1.html> [1905-2010]
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Cogmap (n. d.) cogmop [online] available from <http://www.cogmap.com/chart/tataconsultancy-services> [17-05-10]

(n. d.) Business Strategy of IT Industry [online] available from
<http://www.scribd.com/doc/22283990/Business-Strategy-IT-Industry-Tata-ConsultancyServices> [18-05-10]
TCS (21.05.2010) Tata consultancy service [online] available from
<http://http://www.tcs.com/about/corp_responsibility/environmental/Pages/default.aspx
> [21.05.2010]
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Analysis of The Tata Consultancy Service

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Analysis of the Tata Consultancy Service

Quality Management System integrates process, populace and technology maturity

Tata Consultancy Service Prole:

Head, Global Human Resources)

Better employ of specialization including better amenities and paraphernalia.

Provides an opportunity to extend both practical and product skills.

THE NATURE OF ORGANIZATIONAL CHANGE:

GENERIC BUSINESS STRATEGY:

TCS: CO INNOVATION NETWORK (COIN):

The Hike in Employee costs

PORTER'S ANALYSIS ON TCS:

Growth Engine Partners

Cogmap (n. d.) cogmop [online] available from <http://www.cogmap.com/chart/tataconsultancy-services> [17-05-10]

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