|


  

Growth & Evolution of TCS-

© Tata Consultancy Services was established in the year 1968.

© It began as the "Tata Computer Centre", a division of the Tata Group,

whose main business was to provide computer services to other group
companies.

© Despite unfavorable government regulations, like the License Raj, the

company succeeded in establishing the Indian IT Industry.

© F C Kohli was its first General Manager. The legendary JRD Tata was its
first Chairman.

© One of TCS' first assignments was to provide punch card services to a

sister concern, Tata Steel (then TISCO).
|

  

© It later bagged the country's first software project, the Inter-Branch

Reconciliation System (IBRS) for the Central Bank of India.

© It also provided bureau services to Unit Trust of India, thus becoming one
of the first companies to offer BPO services.

© In the early 1970s, Tata Consultancy Services started exporting its

services.

© TCS's first international order came from Burroughs, one of the first
business computer manufacturers.

© In 1981, TCS set up India's first software research and development center,
the Tata Research Development and Design Center (TRDDC).
|

  

© The first client-dedicated offshore development center was set up for

Compaq (then Tandem) in 1985.

© In 1989, TCS delivered an electronic depository and trading system called

SECOM for SIS SegaInterSettle, Switzerland. It was by far the most complex
project undertaken by an Indian IT company.

© TCS followed this up with System X for the Canadian Depository System
and also automated the Johannesburg Stock Exchange (JSE).

© In the early 1990s, the Indian IT outsourcing industry grew tremendously

due to the Y2K bug and the launch of a unified European currency, Euro.

© TCS pioneered the factory model for Y2K conversion and developed
software tools which automated the conversion process and enabled third-
party developers and clients to make use of it.
|

  

© In 1999, TCS saw outsourcing opportunity in E-Commerce and related

solutions and set up its E-Business division with ten people.

© By 2004, E-Business was contributing half abillion dollars (US) to TCS.

© On 9th August 2004, TCS became a publicly listed company, much later
than its rivals, Infosys, Wipro and Satyam.

© During 2004, TCS ventured into a new area for an Indian IT services
company - Bioinformatics.

© During the recent couple of years TCS has been on the growth of progress.

© Both nationally and internationally TCS is recognized as the highly

respected IT company and has surely put India on the world¶s IT map large
and clear.
|

  

Source-Abhisekh Garg & others, A REPORT ON TCS-STRATEGIES, CORE PHILOSOPHY,

VISION, MISSION & ITS BUSINESS DEFINITION. Unpublished paper
|

  
Ratan Tata (Chairman)
S Ramadorai (Vice Chairman)
N Chandrasekaran (CEO & MD)
S Mahalingam (Executive Director & CFO)
Key people
Phiroz Vandrevala (Executive Director & Head,
Global Corporate Affairs)
Ajoy Mukherjee (VP & Head, Global Human
Resources)
TCS Bancs
Products Digital Certification Products
Healthcare Management Systems

IT Consulting
IT Services
Services Outsourcing
BPO
Software Products

Revenue ù US$ 6 billion (2010)

Net income ù US$ 1.25 billion (2009)

Total assets ù US$ 4.36 billion (2009)

Employees 149,654 (As on 31st Dec, 2009)

Parent Tata Group

Source-http://en.wikipedia.org/wiki/Tata_Consultancy_Services
|

  

Indian branches
TCS has development centres and/or regional offices in the following
Indian cities: Ahmedabad, Bangalore, Bhubaneswar, Chennai,
Coimbatore, Delhi, Gandhinagar, Goa, Gurgaon, Guwahati, Hyderabad,
Jamshedpur,kochi,Kolkata,Lucknow,Mumbai, Noida,
Pune,Thiruvananthapuram.

Global units
Africa: South Africa, Morocco[15]
Asia (outside India): Bahrain, China[16], Hong Kong, Indonesia, Israel,
Japan, Malaysia, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand,
UAE
Australia: Australia
Europe: Belgium, Denmark, Finland, France, Germany, Hungary, Iceland,
Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain,
Sweden, Switzerland, United Kingdom
North America: Canada, Mexico, USA
South America: Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay
|

  

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Source-Abhisekh Garg & others, A REPORT ON TCS-STRATEGIES, CORE PHILOSOPHY,

VISION, MISSION & ITS BUSINESS DEFINITION. Unpublished paper
|
  

Source-TCS Annual Report-2008-2009

|
  

The modular structure will

© Simplify the interface with customers and

© Drive agility in all areas of operations.

The structure will also allow to adapt to

© Specific customer and
© Market requirements
© While ensuring a uniform global service delivery.

N. Chandrasekaran, Chief Operating Officer and Executive

Director.

It provides more opportunities for leadership growth at all

levels in the organization and encourage the next generation
of leaders by empowering group heads to run their unit with
growth and profit responsibilities.
|
 


Porter : Industry forces and competition :

Bargaining power of suppliers,

In the case of both software outsourcing and BPO, for TCS

there are few important suppliers, because TCS¶ inputs are
standard commodities and there is little opportunity for
differentiation on the input side.

Rivalry among Industry firms-

Most of the American providers offer domain and software
skills.

TCS already has the software skills to move into these areas.

But domain skills are a challenge.

It Has to develop global-class, nontechnical knowledge in

various other industries to have an edge over Rivals.
|
 


Bargaining power of buyers,

In the early days the software

vendor market was dominated by
afew large global suppliers such as
IBM.

Indian firms were viewed as too

small for obtaining
significant business.

In addition, they competed actively

with each other at the low-end.

The result was that TCS and its

Indian peers chose components of
the business that were relatively
low value-added and relatively
simple to do. Source-Abhisekh Garg & others, A REPORT ON TCS-STRATEGIES, CORE PHILOSOPHY,
VISION, MISSION & ITS BUSINESS DEFINITION. Unpublished paper
|
 


Bargaining power of buyers,

While it actively sought alliances with larger vendors as a competitive

strategy, its most successful strategy was to directly approach clients and
accept the lower rates that its competitive position necessitated.

Looking ahead, TCS must continue to work to reduce the bargaining power of
customers by trying to move the purchase decision away from price.

This means that TCS must deliver more than

undifferentiated programming by moving up the value chain.

TCS must develop sufficient expertise

so as to make outsourcing these tasks a compelling value proposition.

Of course, it is exactly in these realms that the multinational outsourcing firms

such as IBM, Accenture, and EDS are the most ferocious competitors.
|
 


Bargaining power of buyers,

Forging alliances is often viewed as a good strategy to offset clients¶

bargaining power.

Building alliances with firms working in clients¶ locations should be

discounted as this would further focus TCS in applications¶ development.

The acquisition of a medium-sized American firm with strong client

relationships and domain skills could provide an attractive opportunity.

Although costs per employee would rise, the rise would be small since labor
requirements are lower for higher value-added work.
|
 


Threat of new entrants-

Although firms strive to reduce their direct competition through product

differentiation, in each market segment there continue to be numerous
players.

This suggests an organically-driven growth strategy for TCS: that TCS

continue to do the same kinds of work that it currently does, but try to capture
a greater portion of the value-addition by undertaking larger projects.

For this , it would be required to further increase its capability of remote

management

Threat of substitute products or services-

The threat of substitutes in software services does exist as technology tools

to speed coding etc. However, at this time the threat of substitutes seems
rather remote.
|
 


Growth strategy:
Increase in level of organization¶s operations ( sales revenue, no.
of employees, market share)

Stability strategy:
Absence of significant change, maintaining status quo

Retrenchment strategy:
Reduction in size of organization's operations, usually in an
environment of decline

Combination strategy:
Simultaneous pursuit of two or more of above strategies

In the late 1990s, to accelerate its revenue growth, TCS decided to employ a
three-pronged strategy.

This involved developing new products with high revenue earning potential,
tapping domestic & other fast growing markets and focusing on inorganic
growth through mergers & acquisitions.
|
 


Source-Abhisekh Garg & others, A REPORT ON TCS-STRATEGIES, CORE PHILOSOPHY,

VISION, MISSION & ITS BUSINESS DEFINITION. Unpublished paper
|
 


The table below gives some details of TCS' key acquisitions

 
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Source-http://en.wikipedia.org/wiki/Tata_Consultancy_Services
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Source-http://en.wikipedia.org/wiki/Tata_Consultancy_Services
|
 


TCS' directly-held subsidiaries include:

CMC Limited (India)
WTI Advanced Technology Limited (India)
APONLINE Limited (India)
C-Edge Technologies Limited (India)
MP Online Limited (India)
Tata America International Corporation (USA)
Tata Consultancy Services Netherlands BV (Netherlands)
Tata Consultancy Services Belgium SA (Belgium)
Tata Consultancy Services Sverige AB (Sweden)
Tata Consultancy Services Deutschland GmbH (Germany)
TCS Iberoamerica SA (Uruguay)
Tata Consultancy Services Asia Pacific Pte Limited (Singapore)
TCS FNS Pty. Limited (Australia)
Diligenta Limited (UK)
Tata Consultancy Services Canada Inc. (Canada)
Tata Infotech (Singapore) Pte. Limited *(Singapore)
(In Members' Voluntary Liquidation)
Tata Consultancy Services Morocco SARL AU (Morocco)
Tata Consultancy Services (Africa) (PTY) Limited (South Africa)
TCS e-Serve Limited (India)
|
 


TCS' indirectly held subsidiaries include:

CMC Americas Inc (USA)
TCS Italia SRL (Italy)
TCS Inversiones Chile Limitada (Chile)
TCS Solution Center S.A.(Uruguay)
Tata Consultancy Services Argentina S.A. (Argentina)
Tata Consultancy Services Do Brasil Ltda (Brazil)
Tata Consultancy Services De España S.A. (Spain)
Tata Consultancy Services De Mexico S.A., De C.V. (Mexico)
Tata Information Technology (Shanghai) Company Limited (China)
Tata Consultancy Services Malaysia Sdn Bhd (Malaysia)
Tata Consultancy Services Japan Limited (Japan)
Tata Consultancy Services Luxembourg S.A (Luxembourg)
TCS Financial Solutions Australia Holdings Pty Limited (Australia)
TCS Management Pty Limited (Australia)
Tata Consultancy Services Switzerland Limited (Switzerland)
PT Tata Consultancy Services Indonesia (Indonesia)
Tata Consultancy Services (China) Co., Limited (China)
Tata Consultancy Services (South Africa) (PTY) Limited (South Africa)
|
 


TCS' indirectly held subsidiaries include:

Tata Consultancy Services (South Africa) (PTY) Limited (South Africa)
Tata Consultancy Services (Thailand) Limited (Thailand)
Tata Consultancy Services (Philippines) Inc. (Philippines)
TCS e-Serve International Limited (India)
ERI Holdings Corp (Canada)
Tata Consultancy Services Chile S.A. (Chile)
Tata Consultancy Services BPO Chile SA (Chile)
Tata Consultancy Services Portugal Unipessoal Limitada (Portugal)
TCS Financial Solutions Australia Pty Limited (Australia)
PT Financial Network Services (Indonesia)
Financial Network Services (Africa) (Pty) Limited (South Africa)
Financial Network Services (H.K.) Limited (Hong Kong)
Tata Consultancy Services France SAS (France)
TCS e-Serve America, Inc (USA)
Exegenix Research Inc.(Canada)
Financial Network Services Malaysia Sdn Bhd (Malaysia)
Syscrom S.A. (Chile)
Custodia De Documentos Interes Limitada (Chile)
TATASOLUTION CENTER S.A (Ecuador)
Financial Network Services (Beijing) Co. Limited (China)
|
 


Strategic dimensions-
Innovation strategy
Marketing differentiation- Through Lower costs
Breadth strategy-Scope of market, variety of customers, geographic
range, number of products
Cost-control strategy-No unnecessary marketing or innovation expenses,
tight control on expenses---Not Followed

Source-TCS Annual Report-2008-2009

|
 


Globalization has lead to higher competitions, in which competitors

quickly imitate sources of competitive advantage.

Hence, it becomes necessary for companies to successfully innovate on a

sustained basis.

Advanced Information and Communication Technologies (ICT) have made

it feasible for companies to collaborate and do Globally Distributed Work
(GDW).

The continued progress along the GDW journey combined with the need
for tapping capabilities from other companies and the challenges of
innovation delivery helped Tata Consultancy Services (TCS) move to the
next level i.e. µIT Services Partner¶ to µInnovation Partner¶.

The framework of µInnovation Network¶ is perhaps the only sustainable way

to deliver innovation in today¶s environment.
|
 
 &


R
  
  
Source-Aneesh Zutshi-½
 
   No. WPS01/2009, Research Centre on Enterprise and
Work Innovation, r 

|
 
 &

One of the principle benefits of COIN is spreading the risk of new
undertakings across multiple partners to reduce each partner¶s individual
risk, while spreading the search for new ideas across multiple partners to
increase the flow of ideas into the funnel and the flow of innovation back
to the partners.
Various members of the COIN play four major organizational roles:

Source-Aneesh Zutshi-½
 

   No. WPS01/2009, Research Centre on Enterprise and
Work Innovation, r 

|
 
 &

Role of different partners in COIN

Source-Aneesh Zutshi-½
 

   No. WPS01/2009, Research Centre on Enterprise and
Work Innovation, r 

|
 
 &

Inputs & Benefits for each Partner

Source-
Source-Aneesh Zutshi-½
 
   No. WPS01/2009, Research Centre on Enterprise and
Work Innovation, r 

|
&


TCS' ability to deliver high-quality services and solutions is

unmatched. They are the world¶s first organization to achieve an
enterprise-wide Maturity Level 5 on both CMMI® and P-CMM®.

Additionally, TCS¶ Integrated Quality Management System

(iQMSŒ) integrates process, people and technology maturity through
various established frameworks and practices.
|
 
 &


Source- Class Lecture for MBA part time by Dr Sanghamitra Bhattacharya, February-2010
 ´   


HR strategy for FY09 was two-fold:

Lean, agile, innovation engine delivering and supporting business outcomes.
Continued focus on attracting, retaining and nurturing experienced researchers.

Doubled the no of PhD¶s in TCS Research in the last 2 years, and campus hiring
is done from across the IITs and IISc

MBA campus hires from top-tier institutes are put through a special induction
program to connect them with all the lab/functional heads and give them a real world
feel.

The 13 IIT/IISc campus hires were also put through a special two-tier induction
program,
-With a week long business orientation in the TCS Corporate Learning Centre,
Trivandrum, and
-Customised research orientation in the Innovation Labs in Pune & Bangalore.

In FY10, focus will be to promote team collaboration, align individual

contribution with research objectives, instill a culture of peer reviews, institutionalize
a mentoring program and enhance research quality.´
|

 

Grown to its current position as the largest IT services firm in Asia based
on its record of outstanding service, collaborative partnerships, innovation,
and corporate responsibility.

TCS is proud of their heritage as part of the Tata Group, founded by

Jamsetji Tata in 1868 and one of India¶s most respected institutions today.

Their mission reflects the Tata Group's longstanding commitment to

providing excellence:

To help customers achieve their business objectives by providing

innovative, best-in-class consulting, IT solutions and services, and to
actively engage all stakeholders in a productive, collaborative, and mutually
beneficial relationship.

Their vision is to be one of the top 10 global companies by the year 2010.

Their values ± integrity, leading change, excellence, respect for the

individual, and fostering an environment of learning and sharing.
|

 

Organizational culture TCS has an energetic and open workplace

environment and a collaborative culture that is based on teamwork.
Pulling together is a central tenet of work ethic.

Energetic and full of enthusiasm, employees enjoy their day (and night) at
work.

Life at TCS is a stimulating and exciting experience.

Offices have the best infrastructure and technology, but also the
employees have a knack of working hard ² and partying harder.

TCS is an equal-opportunity employer and TCS employees come from

various nations and speak many languages.

TCS is also habituated to do a regular outing.

|



 
 

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Source- Vijaya Deepti P H, TCS

Case Study The OD Journey TATA
Consultancy Services Ltd. -
Presented at the conference
on Organization Development by
Design- Perspectives &
Pragmatics, 2007.
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Source- Vijaya Deepti P H, TCS Case Study The OD Journey TATA Consultancy Services Ltd. - Presented at the conference
on Organization Development by Design- Perspectives & Pragmatics, 2007.
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Source- Vijaya Deepti P H, TCS Case Study The OD Journey TATA Consultancy Services Ltd. - Presented at the conference
on Organization Development by Design- Perspectives & Pragmatics, 2007.
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Source- Vijaya Deepti P H, TCS Case Study The OD Journey TATA Consultancy Services Ltd. - Presented at the conference
on Organization Development by Design- Perspectives & Pragmatics, 2007.
|



 
 

Post OD scenario from a culture perspective :

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Organizational Strategies for managing environment
uncertainty in resource availability as /Resource dependence theory

1. Domain choice
Changing domain of operation to change operating environment

2. Recruitment
Based on professional competence, experience in operating in similar
Environment

3. Buffering
Maintaining high inventories of input (Skilled Manpower)

4. Smoothening
By offering incentives to customers, demand fluctuations µsmoothened¶ out to
manageable limits.

7. Contracting
Long-term contracts with input / output agencies to protect
organization from input / output related uncertainties.

8. Mergers / Acquisitions / Strategic alliances- Horizontal integrations

|
 


Source-TCS Annual Report-2008-2009

|
 

The Competing ±Values approach
S.No. Constituency Effectiveness criteria

1. Flexibility Able to adjust well to shifts in external conditions and

Demands. Changing structure etc.
2. Acquisition of Able to increase external support and expand size of work
resources Force. Recruitment & Acquisitions.

3. Planning Goals Clear & well understood. Vision & Mission Statement
etc

4. Productivity and
efficiency High volume of output; high ratio of O/I
5. Availability of Channels of communication facilitate informing people
information about things that affect their work. HR OD Practices.
6. Stability Sense of order, continuity, functioning of operations. Low
attrition Rates.
7. Cohesive Employees trust, respect, work Well with each other. HR
workforce Practices.
8. Employees have training, skills, and capacity to do their
Skilled work force work properly. Focus on Innovation & Training
 

1) Aneesh Zutshi-½
 

   No. WPS01/2009, Research Centre on
Enterprise and Work Innovation, r 

2) Tata consultancy services-Annual research report 2008-2009.
3) InfoTech, IT News- TCS restructures global operations into five groups and 20 units,
13 February 2008.
4) www.tcs.com
5) Vijaya Deepti P H, TCS Case Study The OD JourneyTATA Consultancy Services Ltd.
- Presented at the conference onOrganization Development by Design- Perspectives
& Pragmatics, 2007.
6) Abhisekh Garg Asish Kumar Sahu, Birendra Kumar, Happy Lamba, Javed Pirani
Pranjal Kumar Das, Surya Shakti Mohanty, Tanmay Khuntia, A REPORT ON TCS-
STRATEGIES, CORE PHILOSOPHY, VISION, MISSION & ITS BUSINESS DEFINITION.
Unpublished paper
7) http://en.wikipedia.org/wiki/Tata_Consultancy_Services accessed on 03/04/2010
R