Tata Consultancy Service in the IT Sector

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Tata Consultancy Service (TCS) is the world's leading global Information Technology consulting firm and business outsourcing organization that envisaged and forged the espousal of the flexible global business practices that 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 major business was to provide computer services to other concerns. TCS marked a tremendous growth with marking its presence in 34 countries across 6 continents, and a complete range of services across varied industrial fields. TCS ranked in top ten in the fortunes rank list on the year 2009. The concern produced consolidated income of US $5.7 billion for economic year ended 31 March 2008 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 capture the opportunities in financial services and services like Remote Infrastructure management and BPO, 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.

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As the Indian financial 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 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 innovative 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 benefits of the IT upraise across the country. TCS aptitude to convey high-quality overhauls and resolutions are matchless. It is the world's first organization to accomplished an enterprise-wide Maturity Level 5 on both CMMI and P-CMM, using the most meticulous assessment methodology - SCAMPISM. TCS Integrated Quality Management System integrates process, people and technology maturity through various ascertained frameworks and traditions including IEEE, ISO 9001:2000, and CMMI, SW-CMM, P-CMM and 6-Sigma.

For maximum flexibility, speediness, and competence, a vigorous IT strategy is critical. TCS IT Services contribution facilitates companies construct the most of their IT investments from providing system integration solutions, application development and management services, and testing 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 founded 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 first general manager was F.C. Kohli.

TCS first assigned to offer punch card services to a sister company, Tata Steel (TISCO). It later bagged the country's first software project, the Inter-Branch Reconciliation System (IBRS) for the Central Bank of India. It also provides bureau services to Unit Trust of India; as a result TCS became one of the first companies to offer 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 first business computer manufacturers. TCS was assigned to write code for the Burroughs machines for numerous US-based clients. This knowledge also helped TCS bag its first onsite project - the Institutional Group & Information Company (IGIC), a data centre for ten banks, which supplied to two million clients in the US, TCS was assigned to assert and upgrade its computer systems. TCS holds the credit to start the first software research and development centre, the Tata Research Development and Design Centre (TRDDC) in 1981and in 1985 the first client dedicated offshore development centre was established for Compaq.

Early 90's was golden year for the Indian IT outsourcing 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 fortified the opportunities in outsourcing the E-Commerce and the connected solutions and set up its E-Business branch with ten people. In 2004 it showed a development of contributing half a billion US dollars to TCS's total revenue.

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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.

TCS assists some of the world's major MNC's to take up the accurate technology-enabled solution that helps them:

Optimize business recital

Smooth the progress of arrangement of business with technology

Join their extensive supply chains

Decrease product progress time

Get better product differentiation

Offer real-time business handy

Lesser functioning costs

Tata Consultancy Service Profile:

Type: Public BSE: 532540

Founded: 1968

Headquarters:

TCS House, Raveline 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 Affairs)

Ajoy Mukherjee, (Vice President and

Head, Global Human Resources)

K Anantha Krishnan, (Vice President and

Chief Technology Officer)

Products:

TCS Bancs, Digital Certification Products,

Healthcare Management Systems

Services:

Information Technology Consulting, IT

Services, Outsourcing, BPO, Software

Products

Revenue: US$ 6.015 billion (in FY 2008-09)

Net income: US$ 1.123 billion (in FY 2008-09)

Employees: 143,000 (As on 1 April, 2009)

Website: http://www.tcs.com

FINANCIAL POSE:

TCS financially persists to demonstrate the steady stand in the top position of Indian IT firms. 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 financial 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 new customers and penetrating in new market segments and emerging verticals which made them to add 163 new customers internationally in the past year. TCS's major market North America crossed new milestone of revenue above $3 billion and grew 26% in 2008-09 in spite of recession, While Europe's branches faced a rapid growth of 38.5% during the year. It is very significant for an organization to certify the differentiation of its revenue stand and to uphold its augment impetus.

TCS always delivers that the 143,000 TCS employees are the greatest assets of all which includes 10,000 global associates from 67 countries. TCS trained 48,000 software professionals which includes 22,000 college graduates in the past academic year. TCS is continuously investing to unlock new markets and services which made them to invest in emerging markets like Asia-pacific, Middle East, Africa and Latin America. The firms gigantic team of human capital is serving the TCS's prospect not only in business but also its contact on the community. TCS made an effective 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, significant 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 differentiated 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 but exactly not. In order to extract best from an employee, the person above him will treat them equal to extract the maximum and best work from them Functional organization, matrix organization, and line organization are three common types of organizational structure". The main intention of organizations is to distribute the tasks; the main aspect is to maintain the relationship between employees of different 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.

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The organizations can be classified into two main divisions they are

Centralization.

Decentralization.

Centralization

A simple and effective execution of policies for an entire organization.

Gives a reliable approach over the organization.

Makes trouble-free organization and administration control

Better employ of specialization including better amenities and paraphernalia.

Decentralization

Facilitated verdict is to be nearer to the operational level of work.

Amplified receptiveness to local conditions.

It persuades inspiration and confidence of the staff.

Observance progress in compliment and more supple structures.

TCS offers services in eight areas of service: Business Intelligence and performance Management, Business process Outsourcing, 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 Energy and Utility, Financial Services, Banking, Life sciences and Health care, Insurance, Securities trading system, Telecommunications, Retail and Consumer goods, 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 staff and units that integrate various activities of different 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 affects 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.

Provides an opportunity to extend both practical and product skills.

ORGANIZATIONAL CULTURE:

Even though the organizational culture will look like a similar phrase it's really hard to define and explain as the word culture is derived from anthropology. In simple it can be described as the reflection 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 influential factors,

The degree of risk associated with the organization's activities

The speed at which organisations and their employees receive feedback on the success of decisions or strategies.

If the culture is adopted by the employees, it increases the power and authority of management in three ways.

Classifies themselves with their organization and agree to its statute when it's the precise obsession to do.

To incorporate the organization's value when they are right.

Stimulated to attain the organization's objectives.

The types of Organizational culture are Task culture, Power culture, Role culture, Person culture.

A well-built organizational culture lies on eight strong pillars of "OCTAPACE" referring to confrontation, openness, authenticity, trust, autonomy, 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 different modus operandi like the T model. It is a proficiently managed organization with client fulfilment as its top most precedence.

Workforces are given lofty sum of respect and everybody is addressed as an "ASSOCIATE" to make them think that their contribution matters. But there are a the minority who think that TCS has a cold culture, by cold they signify that people are not concerned about others. Few others think that TCS has a energetic culture and there are lots of social performance which the company takes on to help the underprivileged and poor. One such initiative is the TCS Maitree, it is a non-profit auxiliary of TCS which employs the employees to approach further on and educate the under privileged children or seize a camp in a country 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 efforts during induction process, In simple 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 inflation and economic meltdown.

Non-availability of resources

Very high competition in expanding and capturing new market places.

The limitations on products lifecycle due to frequent updates in technologies.

BUSINESS STRATEGIES:

TCS names its business Units 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 quality framework-IQMS in time.

Distinguished in low end services in both resources and cost

A complete focus on customer retention and customer relationship in order to maintain the business revenue which is 95.6%

A solid protection from the money fluctuations with currency hedging.

owing to its tough knowledge management system and resource strength, TCS has been triumphant in attaining the cost leadership in the Industry.

In recent years TCS has been following a further determined strategy where they are moving towards the requirements of customer and the character of business as like Middle East, Europe, and Asia-pacific. TCS focus much on customers and the region 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.