Dissection of the tata group in india

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TCS was started as the "Tata Computer Centre" a dissection of the Tata group whose chief business was to offer computer services to other concerns. TCS marked a tremendous growth with marking its presence in 34 countries across 6 continents, with an absolute range of services across diverse industrial fields. 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 financial services and services like Remote Infrastructure management and BPO in those countries, TCS always offered 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 offerings, all backed by the promise of certainty of experience for customers. By 2007, the value enunciation of "Experience certainty" was officially initiated, acknowledged and authenticated by global customers.

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. Corporate governance helps to serve corporate purposes by providing a framework within which stakeholders can pursue the objectives of the organisation most effectively. Corporate governance signifies acceptance by management of the inalienable rights of shareholders as the true owners of the organisation and of their own role as trustees on behalf of the shareholders.

Table of Contents

INTRODUCTION:

Tata Consultancy Services Limited (TCS) is an Indian IT services, business solutions and outsourcing company headquartered in Mumbai, India. TCS is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India. TCS has offices in 47 countries with more than 142 branches across the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange of India.TCS is one of the operative subsidiaries of one of India's largest and oldest conglomerate company, the Tata Group or Tata Sons Limited, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and

Ratan N Tata has been the Chairman of Tata Sons, the holding company of the Tata Group, since 1991. He is also the Chairman of the major Tata companies including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels and Tata Teleservices. During his tenure, the group's revenues have grown over 13-fold to annualized group revenues of over $80 bn.

In the early 1970s, Tata Consultancy Services started exporting its services. The company pioneered the global delivery model for IT services with its first offshore client in 1974. TCS's first international order came from Burroughs, one of the first business computer manufacturers. TCS was assigned to write code for the Burroughs machines for several US-based clients. This experience also helped TCS bag its first onsite project - the Institutional Group & Information Company (IGIC), a data centre for ten banks, which catered to two million customers in the US, assigned TCS the task of maintaining and upgrading its computer systems. (Chandrasekaran N., 2011)

LITERATURE REVIEW

GLOBAL NETWORK DELIVERY MODEL

Global Network Delivery Model is the engine that allows providing reliable, scalable and cost-effective delivery of services and solutions. This time-tested model has helped to achieve a client satisfaction rating of 89% for meeting quality expectations and an average project budget variation of just 3%, both figures ranging far higher than industry standards.

With TCS' Global Network Delivery Model, customer can

Choose a sourcing strategy best suited to the most important business considerations, e.g., cost optimization, cultural alignment, proximity of location, language capabilities or risk mitigation.

Assure of the highest quality of service regardless of the mix of services, technologies and locations.

Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams.

The Global Network Delivery Model consists of three integrated components:

Global Workforce

Highly effective and scalable talent management: recruiting, staffing, training and retention

Integrated Processes

CMMI Level 5 quality processes

World-class security procedures

Project Management processes and tools (iQMS, etc.)

Multi-Tiered Infrastructure

Multi-continental and interconnected global development center network (local, regional, global model) to allow for better risk management and follow-the-sun coverage

State of the art telecommunications network

Global collaboration tools.

STRATEGIC ALLIANCES

A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations.

Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.

CORPORATE SOCIAL RESPONSIBILITY

Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance if a company is proactive and follows the United States Environmental Protection Agency‎ (EPA) guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns

ETHICAL ISSUE

A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical)

Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

CORPORATE GOVERNANCE

is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade creditors, suppliers, customers and communities affected by the corporation's activities. Internal stakeholders are the board of directors, executives, and other employees.

PESTEL ANALYSIS

Examines the political, economic, socio-cultural, technological, (physical) environmental and legal forces within which businesses operate and which act on them

There are many factors in the macro-environment that will affect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model

GLOBALIZATION OF TCS

GLOBALIZATION TESTING SERVICES

TCS launches products and portals simultaneously across geographies, to ensure that they meet diverse lingual and regional requirements. TCS has the right approach to scale operations optimally and deliver quick time-to-market solutions. Tata Consultancy Services (TCS) is Globalization (G11N) Testing Services to aid rapid product and portal rollout across markets. Leveraging the proven experience, talent pool, ready-to-use assets and tools, and outsourcing expertise, we ensure quick scalability of products, without a corresponding increase in investments.

GLOBAL STRATEGIES

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 five 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 offshore centres in Latin America like Uruguay, Mexico and Brazil.

OVERVIEW

The world has truly evolved into a 'global village', compelling enterprises to meet market needs at the international as well as local levels. This calls for an increase in resources and investment, which could escalate the development costs. TCS is equipped with a comprehensive testing facility, complete with localized operating systems and globalization experts, to help address your issues. Its global reach, comprehensive G11N testing process, globalization testing talent, and a Foreign Language Group, comprising experts for language training help to release software products and websites in multiple languages.

BENEFITS OF GLOBALIZATION

Maximizing your gains and enhancing global business, our offering brings with it several advantages. These include:

Reduced product development and support costs, through efficient testing and deployment of exhaustive I18N and L10N checklists;

]Reduced G11N testing cycle time and quicker time-to-market for your products by leveraging our test automation framework, RAFT;

Performance predictability, as we undertake rigorous testing;

Flexible engagement models, which allow the necessary scalability. (Chandrasekaran N., 2010)

STRATEGIC ALLIANCES:

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 influencing each other strengths to research and to develop the best breed offerings.

Joint advancing engagements, significantly new or improved solution, 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 financial 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- Tekno soft. 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)". TCS it is the customer driven innovation network where the participants are delivery rudiments and explorations

CORPORATE SOCIAL RESPONSIBILITY & SUSTANIBILITY

TCS set up the 'Adult Literacy Programme' to help the Indian government eradicate illiteracy, a major social concern affecting a third of the Indian population comprising of old and young adults.

TCS believe in developing innovative methods using theories of cognition, language and communication to make people literate within the next five years. TCS is committed in using computers and IT as the medium to facilitate the process, monitor administration and manage logistics.

TCS ENVIRONMENTAL POLICY

TCS regards climate change mitigation and environmental improvement as essential features of its sustainable business philosophy.TCS aims to fulfil our environmental commitments through the following broad-level actions:

Integrate energy and environmental considerations in the design of new infrastructural facilities

Improve resource efficiency in operations, especially for key resources such as energy and water

Adopt the "3-R" (reduce, reuse and recycle) philosophy for all types of wastes toward prevention of pollution and dispose of "inevitable" wastes, especially electronic waste, in line with regulatory requirements or industry best practices

Promote "green procurement" to the maximum extent possible

Consider stakeholder expectations on our environmental performance in the design of infrastructure, operations, processes and solutions to the extent feasible

Set, monitor and review objectives and targets on an ongoing basis toward achieving continuous improvement in environmental performance and the overall environmental management system

Remain committed to complying with all the applicable environmental and related legal and other requirements and, wherever feasible, enhance the prescribed standards in all the countries that we operate out of

Continue public reporting of our environmental performance and our contribution to climate change-related issues through relevant national and international forums and to other stakeholders through appropriate communication channels

Communicate the environmental policy to all employees, business associates and other stakeholders and ensure that the policy is available to the public

Review the environmental policy and allied management systems periodically to ensure their continuing applicability and relevance to our operations and evolving stakeholder expectations

Strive to support various voluntary national and international protocols, conventions and agreements on environment protection and proactively engage with governmental and other agencies in driving future environmental policy and regulation

At TCS, concern for the environment is integral to our business strategy toward sustainability, and we shall strive to fulfil all our environmental obligations and commitments toward being responsible global corporate citizens.  

WASTE REDUCTION POLICY

At TCS, we are committed to reducing the environmental impact of our operations through appropriate ongoing material management. This calls for a conscious effort across TCS in the following areas:

Reduction water at source: Printing reports and documents, whenever possible, on both sides of the paper. Updating mailing and distribution lists periodically to avoid overrun; use of e-mail whenever appropriate Giving preferential purchasing consideration to products that are reusable, refillable, repairable, more durable, less toxic, recyclable and which avoid excess packaging.

Reuse of material wherever possible: All products and materials must be reused wherever possible.

Recycling: It is the responsibility of every associate to separate identified recyclable materials and place them in appropriate recycling containers.

Purchasing products with recycled content: All offices across TCS must purchase and use products manufactured from recycled materials whenever feasible.

TCS ETHICAL ISSUE (TATA CODE OF CONDUCT)

FINANCIAL REPORTING AND RECORDS

A Tata company prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards that represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the company conducts its business affairs.

Internal accounting and audit procedures fairly and accurately reflect all of the company's business transactions and disposition of assets. Competition A Tata Company is fully strived for the establishment and support of a competitive open market economy in India and abroad and shall cooperate in the efforts to promote the progressive and judicious liberalisation of trade and investment by a country.

Equal Opportunities Employer

A Tata company provide equal opportunities to all its employees and all quailed applicants for employment, without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability and veteran status.

Gifts and Donations

A Tata company and its employees neither receive nor over or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefit that are intended to, or perceived to obtain business or uncompetitive favours for the conduct of its business.

Political Non-alignment

A Tata company is committed to and support a functioning democratic constitution and system with a transparent and fair electoral system in India.

HEALTH, SAFETY AND ENVIRONMENT

A Tata company strives to provide a safe and healthy working environment and comply, in the conduct of its business affairs, with all l regulations regarding the preservation of the environment of the territory it operates in.

QUALITY OF PRODUCTS AND SERVICES

A Tata company is committed to supply goods and services of the highest quality standards backed by efficient after-sales service consistent with the requirements of the customers to ensure their total satisfaction.

Corporate Citizenship

A Tata company is committed to be a good corporate citizen not only in compliance with all relevant laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self-reliant.

PUBLIC REPRESENTATION OF THE COMPANY AND THE GROUP

A Tata company honours the information requirements of the public and its stakeholders. In all its public appearances, with respect to disclosing company and business information to public constituencies such as the media, the financial community, employees and shareholders, a Tata company or the Tata Group shall be represented only by specifically authorised directors and employees.

SHAREHOLDERS

A Tata company is committed to enhance shareholder value and comply with all regulations and laws that govern shareholders' rights. The board of directors of a Tata company have duly and fairly inform its shareholders about all relevant aspects of the company's business and disclose such information in accordance with the respective regulations and agreements.

REGULATORY COMPLIANCE

Every employee of a Tata company shall, in his business conduct, comply with all applicable laws and regulations, both in letter and in spirit, in all the territories in which he operates. If the ethical and professional standards set out in the applicable laws and regulations are below that of the code, then the standards of the code shall prevail.

PROTECTING COMPANY ASSETS

The assets of a Tata company never be misused but employed for the purpose of conducting the business for which they are duly authorised. These include tangible assets such as equipment and machinery, systems, facilities, materials, resources as well as intangible assets such as proprietary information, relationships with customers and suppliers, etc.

CORPORATE GOVERNANCE

Corporate governance helps to serve corporate purposes by providing a framework within which stakeholders can pursue the objectives of the organisation most effectively. Corporate governance signifies acceptance by management of the inalienable rights of shareholders as the true owners of the organisation and of their own role as trustees on behalf of the shareholders.

By combining ethical values with business acumen, globalisation with national interests and core business with emerging business, the Company aims to be amongst the largest and most respected global organisations. The Company will continue to focus its resources, strengths and strategies to achieve its vision of becoming a truly global leader in software services, while upholding the core values of excellence, integrity, responsibility, unity and understanding, which are fundamental to the Tata companies.

The Company has a strong legacy of fair, transparent and ethical governance practices. The Company has adopted Code of Conduct for its employees including the Executive Directors and the Managing Director. In addition, the Company has adopted a Code of Conduct for its Non-Executive Directors. Both these codes are available on the Company's website. The Company's corporate governance philosophy has been further strengthened through the Tata Business Excellence Model, the Tata Code of Conduct for Prevention of Insider Trading, as also the Code of Corporate Disclosure Practices. The Tata Code of Conduct for Prevention of Insider Trading has been amended during the year in line with the amended Securities and Exchange Board of India (SEBI) Regulations in this regard. The Company has in place an Information Security Policy that ensures proper utilisation of IT resources.

The Company is in compliance with the requirements of the guidelines on corporate governance stipulated under Clause 49 of the Listing Agreements with the Stock Exchanges. With the adoption of a Whistle Blower Policy and the setting up of a Nominations Committee and an Executive Committee of the Directors, the Company has moved ahead in its pursuit of excellence in corporate governance.

PESTEL ANALYSIS OF TCS

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 influence 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 benefits 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 fluctuation in the International market and the fluctuation in the country's currency rate are considered to be the major negative influences. The Global meltdown which paused the IT's vigorous growth had reduced the IT business internationally. But even then the TCS and other firms where managed to maintain their breakeven profits. 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:

English is taken as the official 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 firms. 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 offers 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 field which provides the lowest call rate(1-2 US cents)which makes Indian firms like TCS to thrive high in the field 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 Certified 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 Offshore Partner

LEGAL:

IT firms 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 benefits globally.

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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 main aspect which affects the economic stabilities. TCS is much more concentrated on the environmental issues like global warming, energy utilization, water consumption and etc

REFLECTION:

One lesson that can be learnt from TCS is that large corporations are never out of the limelight, even when conducting business in developing countries many thousands of miles from global headquarters. Public concern over multinational (mal)practice has grown in recent years, and as such any large company must be prepared to take full responsibility for its actions and be held fully accountable at all times.

As such, TCS needs to tread carefully with how it treats protestors and the media. While the allegations remain unproven, it seems that the company is understandably acting defensively. However, a refusal to accept that there is a problem, or to take on board what the protestors are saying, might ultimately do the TCS brand more harm than a CSR programme does good. Which leads to the final issue arising from this case study, and that is the nature of "corporate social responsibility." TCS India's "after-profit" initiatives are undoubtedly serving poor communities and benefiting many people. Yet there is still great dissatisfaction regarding the company's "before-profit" behaviour, whether the allegations are valid or otherwise. Indeed, the manner in which a company makes its money is still more important to people in the vicinity of a plant than how the company spends or reinvests its profits later. Therefore CSR might be better understood as charitable after-profit investments only when before-profit policy and practice is environmentally, and socially, responsible.

Today world is technology renounced world and all the things have its advantage and disadvantage side by side in action but as I am employee of TCS and much flourish by globalization as it take over or have joint venture,alliances with many globalize company.

CSR is duly done by TCS nationally as well as internationally that influence many other organization to take a social responsibility and it follows its own and government issue for the welfare of society.

This is the main reason why I have chosen TCS as my company because I can learn much responsibility toward society and to take the any firm to its highest level.

CONCLUSION

REFERENCES

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