A Report On TATA Consultancy Services Submitted to: Dr.

Brinda Balakrishnan Submitted By: Aniruddh Sharma (83008) Divya Chaturvedi (83020) Mukesh Bansal (83 033) Sourav Sagar Mishra (83049) Vikash Kumar Singh (83056)

Contents Chapters Chapter 1 1.1.1 1.1.2 1.2 1.3. 1.3.1 1.4 1.4.1 1.4.2 1.4.3 1.5.1 1.5.2 1.6 Topics Company Profile Basic Facts About the company TCS Global Leadership T eam Organizational Structure Evolution Of TCS Why TCS is a MNC? TCSs Global Route Organizational Change Impact Of Recession TCSs Response To The Recession SWOT An alysis of TCS 5 6 6 8 8 8 9 9 9 10 10 11 Page No. Chapter 2 2.1 2.1.1 2.1.2 2.1.3 2.2 2.3.1 2.3.2 2.4 2.5 2.6 Chapter 3 3.1 Companys Strategy & Factor Analysis TCS Strategy Global Network Delivery Model St rategic Acquisition Integrated Full Services Play Portors Model Analysis CORE Val ues of TCS Culture @ TCS Political Environment Legal Environment Socio-Cultural Factors of TCS Resource Management (Country Specific) Preamble (USA specific) 2 13 13 13 14 15 15 17 18 18 19 22

3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 3.3.2 3.3.3 3.3.3.1 3.3.3.2 3.3.3.3 3.4 3.4.1 3. 5 3.5.1 3.5.2 3.6 HR @ TCS Staffing Model Recruitment Process Recruitment Objective (Live Case) Co mpensation Compensation Management Compensation Structure Overseas Assignment (U SA) TCS Overseas Deputation Agreement Prior to Overseas Assignment Other Asisten ce During Transition Training & Development TCS Global Learning Centre - Trivend rum Employee Engagement Performance Appraisal Talent Retention Community Relatio ns (Outside India) Bibliography 22 24 26 28 30 31 33 33 34 35 35 36 38 39 39 3

___________________________________________ Chapter 1 COMPANY PROFILE ___________________________________________ 4

1.1.1 Basic Facts Founded in 1968 by TATA group Head Quarter TCS House, Raveline Street, Fort, Mumbai - 400 001, India CEO S. RamaDorai An MNC having 142 office s in 42 countries across globe Total Head Count 1,43,000 Region North America South America UK China Australia APAC ex India No. of offices 29 12 17 04 03 24 No. of employees 14,000 5,000 4,500 1300 1000 4000 Key foreign subsidiaries includes TCS Australia, TCS china, TCS Brazil, TCS Mexi co, TCS USA, TCS UK, TCS Thailand Regional offices at South Africa, Canada, Germ any, France, Hong Kong, Singapore, UAE, Uruguay, Chile, Argentina Revenue $6.0 B illion Home Country India Manpower cost 52.12% of revenue (32.90 domestically & 19.22 internationally) in 2009 compared to 51.47% in 2008. Listed in NYSE, BSE, NSE Total Market capitalization = $ 15 billion Revenue = $6 billion Employee pro ductivity ratio = $ 6 bn / 1, 43,000 = $ 2.1 mn. 5

1.1.2 About the Company Tata Consultancy Services Limited (TCS) (BSE: 532540, NS E: TCS) is a software services and consulting company. It is Asias largest prov ider of Information Technology and business process outsourcing services. The co mpany is listed on the National Stock Exchange and Bombay Stock Exchange of Indi a, London Stock Exchange, New York Stock Exchange TCS is part of one of Indias largest and oldest conglomerates, the Tata Group, which has interests in areas s uch as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and healthcare. 1.2 TCS Global TCS Australia TCS, with strong domain capabilities on the platfor m of delivery excellence, provide near shore, high profile technology services t o ANZ customers. In 2006, TCS acquired consulting firm in Australia, which speci alizes in business and technology transformation, establishing its leadership in consulting and solutions space. TCS acquired Sydney based FNS in 2005 to streng then its banking solutions portfolio. In order to meet the unique needs of custo mers, TCS has also invested in SAS and SAP Technology Centers of Excellence (CoE ) to support its near shore delivery capabilities at Melbourne. TCS North Americ a TCS was the first Indian technology firm to set up operations in New York City in 1979. Today, TCS has 23 offices in U.S., three offices in Canada, three offi ces in Mexico and more than 14,000 consultants delivering real business results to customers. There are 4 development centers and 4 centers of excellence that c reate winning solutions for American customers. TCS South America TCS in South A merica forms part of the the Latin America business arm of Tata Consultancy Serv ices, that operates across the Spanish and Portuguese speaking regions of the wo rld. 6

Over 5,500 local consultants provide IT services, business solutions and outsour cing to over 150 regional and global clients across 14 countries in Mexico, Cent ral America, South America, Spain and Portugal. TCS operates Global Delivery cen ters (GDC) in Brazil, Uruguay, Argentina and Mexico at CMMi Level 5, the highest quality standard for the industry, and maintains a BPO Center in Chile and Ecua dor. TCS Iberoamerica has expanded operations to 14 countries, accounting for ov er 4% of TCS worldwide revenues. Its growth in this region is largely Organic, ot her than the acquisition of a Chilean BPO firm in 2005. TCS has created over 500 0 direct jobs for local citizens in Latin America, Spain & Portugal, which has n ot only helped expand the economies of their countries but also enhanced the kno wledge and competitiveness of their labor forces. TCS South Africa One of the fi rst Indian IT services and consulting companies to enter South Africa, TCS is co mmitted to the development of South Africa. In 2007, TCS South Africa Pty Ltd. w as formed as a subsidiary of TCS Limited, enabling TCS to serve its South Africa n and SubSaharan customers better. We also participate in the incubation of Sout h African IT talent and help build IT delivery capabilities by training and tran sferring our globally-competitive IT processes and methodologies to local firms and citizens with a strong focus on empowerment of previously disadvantaged peop le - and to improve our services and the overall experience of our clients in So uth Africa. TCS now counts many leading South African business houses and govern ment organizations as its clients. These include Nedbank, STRATE, University of the Witwatersrand, Standard Bank, Barclays and others. 7

1.3. Leadership Team S. Ramadorai, Chief Executive Officer and Managing Director N. Chandrasekaran, Chief Operating Officer and Executive Director S. Mahalingam , Chief Financial Officer and Executive Director Phiroz A Vandrevala, Executive Director and Head, Global Corporate Affairs 1.3.1 Organizational Structure At TOP Level CEO CEO Corporate Head , Global Affairs COO O Chief Marketing Officer Chief People Officer COO Regional Heads (APAC, North

Am

Country Heads 1.4 Evolution of TCS Tata Consultancy Services was established in the year 1968. F C Kohli was its first General Manager. One of TCS first assignments was to p rovide punch card services to a sister concern, Tata Steel (then TISCO). It late r bagged the countrys first software project, the Inter-Branch Reconciliation S ystem (IBRS) for the Central bank of India 1970s, TCS started exporting its serv ices. TCSs first international order came from Burroughs, one of the first busi ness computer manufacturers. In 1981, TCS set up Indias first software research and development centre 8

Revenue $100 Mn $1 Bn $2 Bn $5 Bn $6 Bn Year 1991-92 2002-03 2004-05 2007-08 2008-09 No. of Employee 5,500 24,000 47,000 1,10,000 1,43,000 In 2004, TCS became a publicly listed company. 1.4.1 Why TCS is a MNC? 142 offices in 42 countries Workforce consists of nation als from more than 60 countries It has distribution and delivery centers in most of these 42 countries. 1.4.2 TCSs Global Route In last 5 years, TCS has established several subsidiaries in foreign lands like Thailand, China, Australia, Brazil , Mexico, Netherlands to cater the need of local customer. Also acquired many foreign cos to expand it s presence in various locations. Hiring More local talent It is taking both M & A route and organic growth route to make it big globally. 1.4.3 Organizational change In last 5 year, twice TCS has seen rezig in top bras s. 1st S. Ramadorai has been appointed to lead the TCS in 2004. Due to his sharp acumen, he put TCS in growth path. In this period TCS has evolved from a 2 bill ion to a 6 bllion dollar co. Another significant change that TCS is going to wit ness is Change in Guard October 2009 where N.chandrasekhran would be replaced as CEO of the company and Current CEO will be elevated to the post of executive vi ce-chairman. 9

 This change of guard is likely to put TCS into fortune 500 list by 2012-2013 wit h a revenue of around $ 11 bn . So, this phase of TCS under new leadership will script a new chapter in the success story of Indian IT companies. 1.5.1 Impact of Recession As we know, the IT and ITES sector has been severely a ffected by this downturn, TCS is also not immune to it. TCS business is largely export centric and it is into IT service business. But, during recession the IT export has fallen significantly as the customer are too concerned and judicious about their IT spending. Finalizing a deal has become a time consuming process w hich has put TCS into uncertain business environment. As a result, unlike previo us years TCS posted a flat growth in the financial year 2008-2009 and the outloo k has been the same for next fiscal also. 1.5.2 TCS response to the recession This recession has presented a new opportuni ty for TCS to venture into new geography in order to reduce its dependence on US A and EU market from where it derives around 80% of revenue. Being hit hardly by global recession, TCS has taken many cost cutting measures in order to serve cu stomer in a better way in this uncertain economic condition. Moreover, it has be en acting as a alliance for its clients to help them combat recession by means o f price negotiation. TCS has a adopted a flexible approach of shifting the onsho re tasks to offshore in order to offer client a better deal at a low cost. To ma intain its own operating margins high, TCS has stopped hiring for time being and largely banking on employee redeployment. It has taken several measures to cut its operational cost and to remain competitive in these difficult times. It is a lso looking for possible target for M & A to achieve inorganic growth and also t o increase its people-process capabilities. 10

1.6 SWOT analysis of TCS 11

___________________________________________ Chapter 2 COMPANYS STRATEGY & FACTOR ANALYSIS ___________________________________________ 12

2.1 TCS Strategy TCSs strategy is based on three pillars. These are the Global Ne twork Delivery Model Strategic Acquisitions Integrated Full Services Play 2.1.1 Global Network Delivery Model The Global Network Delivery Model (GNDM) is a truly global network. GNDM is much more than having an India-centric delivery mod el with near-shore centres and is not about setting up Offshore Development Cent res (ODC) in different geographies. The GNDM enables our delivery centres to coll aborate on projects, leverage all our assets, work on a follow-the-sun model if ne cessary, and above all, through their homogeneity in terms of quality, skills as well as look-and-feel, give customers the same experience of certainty, irrespe ctive of whether they work with us in Chennai, China or Chile. The Company becam e the first organization in the world to be certified enterprise wide for ISO 90 01-2000, ISO 27001:2005 and ISO 20000:2005 in January 2007. Our customers can co ntinue to experience the certainty of frequently. "high quality of service deliv ery", as we stay focused on continuous improvement of security, quality and proc esses in an industry where technology changes occur 2.1.2 Strategic Acquisitions A key driver for growth has been the Companys stra tegic acquisitions for creating new capabilities that would drive higher levels of synergistic growth. The value being generated by these acquisitions has been significant and so far we have seen only the beginning of synergistic revenue op portunities. We believe that many of the acquisitions we have made in the last c ouple of years have become force multipliers for the Company in terms of both re venue growth and improved capabilities. Many of the large value deals the Compan y has been able to win can be attributed to these acquisitions. 13

2.1.3 Integrated Full-Services Play TCS is increasing its focus on expanding the breadth of its service offerings and capabilities to become a one-stop service provider. The power of the GNDM as well as our strategic acquisitions is illustra ted through our integrated full-services play that now captures the entire value chain of IT from consulting to products and solutions and from implementation t o support. One recent example of all our services at work as part of an Integrat ed Full-Services Play is the $140m banking/financial services deal from Bank of Pichincha in Ecuador. This deal uses FNS/BANCS the core banking engine from TCS. This entire business initiative was consulting led with the objective of bringi ng about significant improvement in the cost-income ratio of the bank. In this d eal TCS will be offering the bank IT Services, Infrastructure Services and BPO all using our GNDM. The Bank of Pichincha will depend on TCSs FNS centre in Syd ney and India Development centres for any product customization. It will depend on TCSs Santiago centre for BPO best practices and process management. Any othe r custom development will be done at TCSs centre in Uruguay. TCSs process capabi lities and range of services provide a compelling value proposition for its exis ting customers with over 96.8% of our business this year coming from repeat cust omers. Moreover, these offerings are also witnessing traction among more than th e 100 new customers added during the year and give the Company significant oppor tunities to cross-sell different solutions to customers. To achieve its target o f being among Top 10 IT service providers globally by 2010, TCS has devised a 5 pronged approach. Instead of going for large aquisitations, acquire companies wh o would be valued around 1/10th of its revenue. Target for more multimillion-mul ti year deal which would ensure constant flow of revenue in future. Diversify an d strengthen its geographical presence in places like middle-east, Brazil, China , Japan and more focus on emerging economies Focus on domestic market so that it can contribute around 8% to revenue currently from 2% To strengthen its consult ing business in order to contribute around 12% to top-line from current contribu tion of 5%. 14

However, the current downturn has taken a hit on TCS growth plan. So, in recent times, TCS has tried to reduce it dependence on US market which contributes arou nd 52% of its revenue and to get more and more business from emerging countries even if at a lower margin. Thus, it is recently focusing on acquiring more numbe r of new customers from various geographies. 2.2 Porters Model Analysis In context of TCS, to make it a true MNC, the followin g 3 factors out of 5 are largely responsible. 1. Competitive rivalry:- The compe tition in Indian IT industry has got more intense over the last decade. WIPRO & Infosys are the two main competitors in this space for TCS who are competing wit h TCS in a big way in all aspects. The pressure to remain no.1 software exporter is immense on TCS. So, to maintain its leadership TCS expansion into new territ ory is a natural choice for the company. 2. Threat of new entrant:- New service providers like IBM global services, ACCENTURE, HP, CAP Gemini consulting are exp anding very fast in India. So, it is also putting its pressure on TCS to compete with to maintain growth in long term. 3. Buying power of consumer:- Indian IT s ervice is largely driven by customers. Indian IT companies have moved form being a simple service provider to a role partner. Increasing customer centric approa ch has made the TCS a global player to serve its customer in a more effective wa y. As, TCS follows onsite-offshore business model, it is imperative for a compan y to set up a local delivery unit for foreign clients. Two major markets for TCS are USA & EU which contributes around 80% of TCS revenue. In order to cater to the need of this lucrative market better, TCS has set up a number of local deliv ery centers in these geographies. 2.3.1 CORE Values of TCS Integrity, leading change, excellence, 15

 respect for the individual, fostering an environment of learning and sharing Besides, TCS business operation is largely driven by TATA code of conduct. Each of TCS employees irrespective of their nationalities and geographies when 1st jo in the company go through a orientation program which aims to imbibe TATA code o f conduct in them. Some important aspects of TATA code of conduct are National i nterest The Tata Group is committed to benefit the economic development of the c ountries in which it operates. A Tata companys management practices and business conduct shall benefit the country, localities and communities in which it operat es, to the extent possible and affordable and shall be in accordance with the la ws of the land. A Tata company in the course of its business activities shall re spect the culture customs and traditions of each country and region in which it operates. Equal opportunities employer A Tata company shall provide equal opport unities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, color, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic origin or disability. Human resour ce policies shall promote diversity and equality in the workplace, as well as co mpliance with all local labour laws, while encouraging the adoption of internati onal best practices. Employees of a Tata company shall be treated with dignity a nd in accordance with the Tata policy of maintaining a work environment free of all forms of harassment, whether physical, verbal or psychological. Gifts and do nations A Tata company and its employees shall neither receive nor offer or make directly or indirectly any illegal payments, remunerations, gifts or comparable benfits that are intended or perceived to be uncompetitive favor for the conduc t of its business. 16

Ethical conduct Every employee of a Tata company including full-time directors a nd chief-executives shall exhibit culturally appropriate deportment in the count ries they operate in and deal on behalf of the company with complete professiona lism, integrity and honesty. Every employee of a Tata company shall preserve hum an rights of every individual and community and shall strive to honour committem ents. 2.3.2 Culture At TCS, one can see an energetic and open workplace environment, a nd a collaborative culture thats based on teamwork. Pulling together is a centr al tenet of its work ethic. Energetic and full of enthusiasm, TCSers enjoy their day (and night) at work. Life at TCS is a stimulating and exciting experience. Not only its offices have the best infrastructure and technology, its associates have a knack of working hard and partying harder.. TCS employees take pride in adhering to the Tata code of conduct, which is in place across the entire Tata Group. The code is a means of upholding and strengthening the trust reposed on us by its various stakeholders, be it customers or the wider society. Diversity at work: TCS is an equal-opportunity employer and TCSers come from many national ities and speak many languages. And, since it believes in celebrating everything under the sun, TCSers are found singing carols at Christmas and doing the dandi ya dance at Navrathri with equal enthusiasm. Open door Policy: The senior colleagues at TCS follow an open-door policy in whi ch any associate can approach the CEO and senior management with work-related pr oblems.Communication is a big word at TCS and employees regularly takes part in webcasts and chat session through which important corporate issues or decisions on real-time basis are shared with associates worldwide. TCS has institutionaliz ed open-house sessions and engagement programs in which associates at all levels meet and discuss various work issues. In addition, TCSers can 17

also take part in one-on-one sessions where they can interact privately with sen ior management. These sessions are helpful in providing mentorship, as well as u nderstanding real-life issues that colleagues face at work. The queries and disc ussions are formally recorded and followed up. Fun @ Workplace: TCSers are habit uated to do the regular outing, be it with their project teams, with Maitree or with just a bunch of other like-minded TCSers. They often go on treks, nature ca mps, picnics or just bus rides whenever they get chance. Many a times such event s are facilitated by the company itself. 2.4 Political Environment Political stability is a huge factor in the growth sto ry of Indian IT sector. As Indian IT sector is driven by outsourcing, a stable p olitical environment means increased customer confidence which eventually brings business to the domestic firms. From the onset Indian govt. has offered tax hol idays to IT sector. Further it is extended till 2012. This kind of favorable act ion from govt. has helped the companies like TCS to grow by leaps and bounds. Th e tax holidays was scheduled to be ended in 2008; but amid on going global slowd own Indian govt. decided to extend the same till 2012. Thus TCS has been benefit ed largely. However, if political scenario of USA is considered then, it has bro ught bad news for TCS. With the change of guard in USA, getting a H1B visa has b ecome more stringent. Earlier, TCS was one of the main player who has utilized H 1B visa in its favor to a great extent to serve its customers at near shore. Oba mas anti outsourcing policy has compelled USA companies not to give more business to India which eventually has hit TCS badly. Thus, to deal with the political e nvironment of host country is a huge upcoming challenge for TCS. 2.5 Legal Environment Experience:- In march 2009,Over 100 workers of UK-based in surance firm Legal & General (L&G) were up in arms against the TCS management al leging that the company is 18

replacing them with Indian professionals at lower wages, after Indias biggest sof tware exporter started executing a five year managed services agreement with the insurer, signed last year. Such incidents have shown TCS new set of ground real ities of running a global operation. Tech workers in the UK and US very often ha s launched public outcry against Indian IT companies and tries to pressurize the foreign cos. In some countries like UK stringent labor laws are prevalent and d eviation from such can bring a great legal hassle to the companies like TCS whic h generally works on low-cost labor model. 2.6 Socio-Cultural Factors & TCS New geographies attracting IT major TCS are Eas t Europe, Latin America and Brazil, Russia, India and China (Bric nations) and, as a consequence, posing challenges on account of multi-cultural environment and language barriers. In response to such barrier, TCS had to change its travel do cuments to accommodate partner instead of wife. It has also made changes in intran et and common mailing system to avoid confusion related to tax policies and has included common holidays of different countries. Besides cultural practices, hir ing rules and transfer of retirement benefits could also create problems. For ex ample, Employee management is a crucial factor especially in East Europe as the l aw does not insist on a notice period. Employees are free to leave their jobs. S o, TCS prefers to hire natives as HR managers as it needs people who are familia r with rules of the land and speak the native language. During the past two year s, TCS has been focusing on inorganic growth and is actively looking at setting up offices in emerging destinations in East Europe and Latin American countries. TCS has offices in Brazil, China and Hungary. TCS brings people from these coun tries to India for special training. TCS aims to create a global organisation, wh ich follows the same ethics and values everywhere. Hence,Training programmes in I ndia will help expats familiarize with the companys culture, which is typically i s typically Indian. 19

Moreover, in a bid to become a global player in the knowledge sector, TCS is tra ining all its employees to speak and understand at least one foreign language. T he move is not limited to employees just learning a language but also making the m conversant with the culture and etiquettes of at least one foreign country. TC S has created a special foreign language learning centre at its Thiruvananthapur am facility where all newly recruited employees are sent for initial orientation and training before being inducted into the company. All the new employees are required to undertake a course in one language of their choice. Moreover, the co mpany has also started running similar programmes at all its major offices and d evelopment centres to impart language and cultural skills to the existing employ ees. The company uses several methods (besides classroom and online learning) su ch as role plays, games and quizzes to invoke interest in foreign cultures among the employees. 20

___________________________________________ Chapter 3 RESOURCE MANAGEMENT ___________________________________________ 21

3.1 Preamble (USA-Specific) TCS was the first Indian technology firm to set up o perations in New York City in 1979. Today, TCS has 23 offices in U.S. and more t han 10,000 consultants delivering real business results to customers. There are 4 development centers and 4 centers of excellence that create winning solutions for American customers. USA market is the largest contributor to the TCSs topline . 52 percent of the TCS revenue comes from USA alone. Some of the biggest client s of TCS are Citi Group, GE , Microsoft which are based in USA. So, to serve the customer better, TCS is striving hard to increase local base in USA. Earlier a large chunk of employees working in TCS America are Indian nationals who were go ing to near shore on work-permit Visas. However, the changed economic scenario h as forced TCS to take a more localized approach to serve the customers from USA. As a result, TCS opened its largest North America Delivery Center called TCS Se ven Hills Park. Located in Milford, Ohio, a suburb of Cincinnati, the facility s its on 220 wooded acres in March 2008 with a investment of $19 million. The new facility includes 200,000 square feet of office space and can accommodate up to 1,000 TCS associates, most of who will be locally hired from the region and its universities. The facility will serve as the primary software development and de livery center for North American customers. In addition, the campus will also sh owcase TCS Innovation Labs, customer network operations centers and briefing cen ters. So, the investment of such measure clearly demonstrates importance of USA in TCS future plan. Hence, in a nut shell, TCS in America wants to be a long-ter m player being growth driver fro its world-wide operation. 3.2 HR @ TCS TCS has developed an unbreakable bond with sound HR practices in an environment that def ies traditional roles and responsibilities. The TCS-HR group operates with techn ical experts to create a synergy which is enviable. Figure 1 illustrates the rol e of HR, which evidently is that of a facilitator. So whether it is recruitment or even career development, HR is the catalyst which initiates and institutional izes processes. To manage all the functions for over 140000 employees is a Hercu lean task but the smoothness of operations is intriguing. The HR structure, whic h allows flexibility and empowerment, is the solution. 22

The major resource for any company is Human. And to management that company shou ld perform basic function as given below: Recruitment Policy and Process Trainin g and Development Compensation and Salary Structure Performance Management Talen t Retention 23

3.2.1 Staffing Model Country / Business Unit / Region Mexico Brazil Uruguay- Arg entina Ankur Prakash Cezar Castelli Mario Tucci Indian National Uruguayan Nation al He is heading 850 professionals who are based at a Global Delivery Center and re gional training center in Montevideo (Uruguay), as well as an extension center i n Buenos Aires (Argentina) Headed By Comments APAC Latin America Be-ne-laux Australia Girija Pande Gabriel Rozman Shankar Narayanan Varun Kapur Indian National Native to South America Indian National His Previous predecessors were Mr. R Ravishankar (Indian) and Mr . Rick Marmur (an Australian) Europe Global Hi-tech Business Unit Uruguay- Argentina AS Lakshmi Narayanan Carol Wilson Mario Tucci He was earlier head of TCS UK In the rank of vice-president Locally hired TCS staffing model is unique in its way; it is a mixture of both Ethnocentric an d polycentric model. TCS has divided whole of its operation in 5 geographies lik e India, North America, Latin America, Europe, APAC, Africa-middle east. Other than Latin America operation, all operations are headed by its Home countr y nationals. However, Latin America operation is a headed by a 3rd country natio nal. In 24

most of the English speaking nations, the country manager is from its home count ry. Its Australia operation also during 2006-2008 was headed by a Host Country N ational However all HR positions are taken by host country nationals. TCS intend s to manage a ratio of (80:20) among local employees and expatriate in its overs eas location. Besides, in emerging economies like china and Japan, Argentina etc . it is focusing on recruiting local people as to head the operation where it is facing stiff challenges in terms of customer acquisition due to huge cultural b arrier and lack of local knowledge. . Currently 30% of the workforce working in TCS Japan is locally hired. 25

3.2.2 Recruitment Process (For Entry level position) TCS goes for campus placement in various Universities in USA & also holds career fair at those places. 26

 Else lateral hiring is done on demand basis. Jobs posted on website apply online application screening called upon for interview May be telephonic or face2face interview or both If found eligible, job offer verification joining In most of the countries where it is operating, TCS has adopted a indirect recru itment process via its web-site where one can submits his resume. However, it is gradually starting on-campus recruitment process in places like UK, Australia, USA etc. However, TCS looks for those candidates who have excellent academic record throu ghout means having at least 65% of mark or equivalent CGPA at all important leve l of academic career. TCS on campus recruitment policy is meant for hiring resources for both technica l as well as managerial role. In TCS, Fresher to lateral employee ratio stands at 60:40. So, it is evident tha t a large pool of TCS employee base is fresh graduates. That is why TCS has a ro bust training and development program worldwide to leverage the potential of fre sh recruits. 27

 As at March 31, 2009 women constituted 30% of the Companys workforce (28% as at M arch 31, 2008), however in TCS USA percentage of women workforce stands at aroun d 35%, marginally higher than the global proportion. In last financial year, There were net additions during the year of 1,479 non-In dian nationals and TCS is focused on adding to its global knowledge workforce an d integrating these professionals into its workforce. Concurrently, a strong tal ent localisation initiative was being driven by Ramadorai, as the number of nonIndian employees rapidly increased to stand at over 10,000 at the end of 2008-09 , including 1,200 people in China and over 6,000 people in Latin America, creati ng a multinational, multi-cultural global organisation. 3.2.3 Recruitment Objective (By the help of Live Cases) Case1 28

Analysis : Technical lead is a mid management job that requires to lead a team o f technical expert and software developers. The main function at this level is t o coordinate the activities performed by the technical team, assessment regardin g the quality of work, providing technical and personal assistance to the team w hen required, acting as a bridge between the higher management and his team, mot ivating the personals in the team etc. As it is basically a leadership role, att itude is the most important aspect that must be considered in the selecting a ca ndidate. Also as he/she is also required to carry out complex technical and admi nistrative works, skill is also an important criterion in the selection process. Apart from these, the candidate must have area/ domain knowledge to succeed in his role and to carry out his responsibilities effectively. So for this designat ion: Attitude > Skills > knowledge Case2 29

Analysis Engineer trainee is an entry level job the where the candidate is raw, fresh and inexperienced. The company selecting candidates for these positions wi ll basically look for some basic level of area/domain knowledge relating to soft ware coding and testing so that he can start doing his basic work and start cont ributing for the organisation after getting the on job training. Second most imp ortant aspect for this role is good attitude of the candidate. This is important because as a new entrant in the organisation, he should have the right kind of attitude to gel with his co workers and work in a team. Lastly, acquiring skills are important as the time passes and he gains experience s that his contributio n increases and he takes up more responsibility in the organisation. So, for thi s role: Knowledge > Attitude > Skills 3.3 Compensation 3.3.1 Compensation Management TCS compensation management syst em was based on the EVA model. With the implementation of Economic Value Added ( EVA)-based compensation, the salary of employees comprised of two parts fixed an d variable. The variable part of the salary was arrived after considering busine ss unit EVA, corporate EVA, and also individual performance EVA. EVA is calculat ed as net operating profit after taxes minus a charge of the opportunity cost of the capital invested. The variable component in the salary structure of an indi vidual also depends on the rating that he receives on a scale of 1-5 (D-A). 30

3.3.2 Compensation Structure Median Salary by Job Employer: Tata Consultancy Ser vices, Ltd. [Note : Salary of business manager is around $ 0.1 million] Median Bonus by Year s Experience Employer: Tata Consultancy Services, Ltd. City allowance The compensation package varies slightly depending upon the place o f posting. For example: the person posted at New York is entitled to get around $ 500 per month more than the person posted in a county like Horsham. 31

 Average Vacation Weeks by Benefit/Perk Employer: Tata Consultancy Services, Ltd. Besides, if the employee is unmarried, then he is entitled to get a total 20 day s of paid holiday for his marriage if marriage is conducted at the home country of the employee. Else, annually an employee gets 10 days of paid leave for visiting his own count ry once a year. During this, the travel expense is reimbursed by TCS whereas the Spouses expenses are burn by the employee himself. In a normal year, overseas salary in USA goes up generally by between 3% to 5% w here as it is 10-15% at the parent country. Welfare benefits for full-time employees include subsidized Housing and other lo ans, medical facilities, retirement benefits, transportation, canteen facilities , overseas allowances, family events (picnic, treks, cultural events), on premis e bank extension counters/ATMs, Helpdesk facilities, flexible working hours, ass istance in school admissions, holiday homes, magazine subscriptions, overseas tr avel reimbursement for paper presentations and maternity leave for adoption. 32

 Salary Structure Typically, a TCS employee gets 70 per cent of salary as fixed c omponent and the rest as variable & increases towards top management. The latter , in turn, is split into one part linked to individual performance and the other to company performance. The companyrelated variable is paid in advance each qua rter. 3.3.3 Overseas Assignment (USA) 3.3.3.1 TCS - Overseas Deputation Agreement For the overseas deputation TCS does have a Master Overseas Deputation Agreement / M ODA in short, which every associate going on deputation outside India needs to s ign this. There is a clause in the agreement that says one can not accept any of fer or anything from a client / competetitor of TCS, whilst on the deputation. T raditionally INFOSYS, WIPRO, IBM, ACCENTURE, HP, Cape Gemini, HCL are referred a s competetitor of TCS in the agreement. Also one has to serve 6 months after com ing back to India in the company. 3.3.3.2 Prior to Overseas Assignment The person concerned is given cross-cultura l training which includes culture, social etiquettes, currency usage of host cou ntry, language training etc. Browse Ultimatix : TCS internal web-portal Ultimatix which is a employee interaction platform also assists as a great tool in order t o prepare someone for foreign assignment. Via ultimatix employees share their own experience in a foreign land and also give necessary things to know before landi ng in that place. By going through this, one gets an overall idea about that cou ntry. In case of any doubts, the home country employee can post its queries in ul timatix and many TCSers come forward to address the queries put forward. In the e vent of outbreak of an epidemic or any other local issues which are important , in India or overseas, Ultimatix is the chosen mode of communication to dissemina te knowledge and dispel myths (e.g. during the SARS and bird flu outbreaks in As ia); email is also used as a communication medium to send dos and donts messages. 33

 In ultimatix . there is a section called Accomodation where TCSers make postings about various accommodation option available in their locality or nearby. Thus, hi s section also helps a off-shore employee to a great extent to discover his/her possible accommodation in foreign land. Join Maitree : The better half of TCS o Maitree, a fraternity comprising TCSers spouses, was formed with the objective of bringing the large and geographically widespread TCS community under a common umbrella. o Maitree has two distinct objectives. Primarily, it serves as an inf ormationsharing body where useful tidbits about living in a foreign country Ques tions like Which are the good schools in Minneapolis? Where do you get Indian sp ices in Stockholm? are shared by TCS employees and their families. o Maitree als o functions as a forum where a wide range of socially relevant activities are co nducted, be it improving the environment or taking care of the less privileged. The Visa initiation process is done by the company and TCS bears all the expense s during this process of obtaining the VISA. If the person concerned is married, the initiates the process of getting the Dependent VISA for the spouse of the per son concerned. 3.3.3.3 Other Assistance provided by TCS during this Transition TCS bears all th e expenses related to traveling from source to destination for both the employee and his spouse which includes medical insurance, Travel insurance etc. If some employee goes for an overseas assignment to USA from India for a long term ( > 6 months) , then the employee is paid the salary of 1 month in advance. TCS trave l dept. of the local unit also helps the employees to locate a suitable accommod ation nearby. TCS provides assistance to the employee to obtain a Driving Licens e Locally & extends monetary help to the employee to acquire a vehicle for commu tation. [NOTE: The above monetary contribution varies depending upon the rank of the emp loyee] 34

3.4 Training and Development As organisations continue to operate in and compete in a Dynamic global scenario where unpredictability is the norm, Winning organi sations need to convert todays challenges into Tomorrows opportunities. It is this belief that fuels TCS Commitment to invest in building people competencies and e nsure human capital development on an unparalleled scale. In the year under revi ew, TCS continued to invest in recruitment, Learning and development of its peop le despite short-term Business pressures. The Company integrated over 48,000 Pro fessionals, including over 22,000 campus graduates and Over 12,500 professionals were in sourced as a result of the Acquisition of Citigroups captive BPO in Indi a. TCS remains the largest private employer in Indian industry with over 143,000 World-class professionals and with the highest retention. Over 1.6 million lear ning days have been invested in developing Additional competencies in 2008-09. A round 23,000 TCSers gained additional technology Certifications. TCS believes th at creating talent readiness will Drive agility in learning and development. Our Initial Learning Programme (ILP) curriculum has been revised in this context to Train freshers across multiple technologies and platforms TCS also continues to expand its web-based learning platform to Benefit its diverse workforce of over 10,000 professionals from 67 nationalities. New e-learning modules have been lau nched In Portuguese, Mandarin and Spanish to help employees in Latin America and China to develop their own competencies. A New Integration portal has been laun ched. This is designed to Familiarise and educate people on the Tata Groups value s, ethos and culture, especially for colleagues who have come into the Company, through in sourcing from customers and through Acquisitions. Employee performanc e is closely aligned to Organisational performance. TCS has raised the individua l Performance bar in the current environment to improve Employee efficiency and productivity. This requires employees to contribute more aggressively and enhanc e performance Levels on a continuous basis. TCS spends around 6% of its revenue in training and developement 3.4.1 Learning and Development Trivandrum TCS recog nises that investing in its people is a key to the sustainability of its deliver y model by generating employee satisfaction and minimising the attrition rate. O ne aspect of this is the culture of learning throughout an employees development lifecycle and TCS invests around 6% of its profits in L&D. The L&D centre, at Tr ivandrum, India, was established in 35

1998 to deliver its training requirements. It has18 classrooms, a library, an au ditorium, a conference hall, discussion rooms, and about 300 personal computers connected to servers. All full-time employees of TCS, including all support groups, receive half-yearl y career development reviews. All new employees, in the first year of their empl oyment, receive quarterly reviews. At the end of every assignment, employees may also receive formal projectend reviews. 3.5 Employee Engagement Employee inputs are solicited through the annual survey called PULSE, conducted through the Companys digital portal, Ultimatix. Opinion p olls, Proactive Employee Engagement Programme (PEEP), open-house sessions, Proce ss Improvement Proposals (PIPs), grievance mechanisms, and exit interviews are s ome other mechanisms to solicit feedback from employees. Cross-Functional Teams (CFTs) of local Admin, HR and employees are deployed for seeking the feedback. T o ensure appropriate client site work environment, our work contract provides a baseline, and HR regularly liaisons with client support groups. Some channels of Employee Engagement in TCS are: Speak Up: Speak Up is a platform for employees to discuss pertinent matters with the Companys seniors and to bring themselves cl oser to the Company and its management; 36

thus developing the channels of communication between employees and the Companys top executives. Grievance Redressal System: Employee grievances are logged throu gh a centralised grievance redressal system. Branch Grievance Coordinators and t he Corporate Grievance Process Lead perform weekly and monthly reviews to ensure quality grievance resolution by the Human Resources Team within the specified t imeframe. Ethics Counsellors at regional and corporate levels also play a key ro le in handling the sensitive grievances. PIPs: Employees can log PIPs through a link in Ultimatix. To encourage employee participation in the endeavour, the Best PIP award is given annually. PEEP Mentoring: PEEP is a mentoring initiative in w hich employees connect one-onone with TCSs senior management. Propel: Propel prov ides a forum to discuss issues and ideas, to promote the ideas and to resolve is sues at inception level itself. Propel covers all employees across TCS. Camps an d confluences are conducted for problem solving, discovery of new ideas, dialogu e, reflection and fun. Through these sessions, the employees are provided a plat form for learning, interacting and problem solving. PULSE: PULSE is the company s annual Associate Satisfaction Survey, undertaken every year to measure and und erstand the TCS Associates attitude, opinions, motivation, aspirations and sati sfaction. Through PULSE, TCS attempts to find out opportunities for improvement, invite suggestions, ascertain shortcomings, design appropriate plans, which fin ally conclude in action. The steady rise in the Associate Satisfaction Index (th rough PULSE) is an indication of TCS culture and care for its associates. Stress Management: The IT industry is known for its high-pressure work atmosphere and long working hours, which create high levels of stress. TCS encourages its emplo yees to de-stress by participating in Fun@Work which is a term used across TCS t o refer to any activity or programs that is conducted during work. Fun@Work Comm ittees are formed across accounts which organise, picnics, parties and get-toget hers with fun and games. Annual picnics take place in each region that gives TCS ers spread across a region to come together and celebrate with their families an d colleagues. 37

3.5.1 Performance Appraisal TCS conducts appraisals twice a year. At the end of the year At the end of a project. Appraisals are based on Balanced Scorecard, wh ich tracks the achievement of employees on the basis of targets at four levels: financial customer internal learning The financial perspective quantifies the em ployees contribution in terms of revenue growth, cost reduction, improved asset u tilization and so on; The customer perspective looks at the differentiating valu e proposition offered by the employee; The internal perspective refers to the em ployees contribution in creating and sustaining value; The learning and growth ar e self-explanatory. The weight given to each attribute is based on the function the employee performs. Based on their individual achievements, employees are rat ed on a scale of one to five (five = superstar). If employees get a low rating (le ss than two) in two consecutive appraisals, the warning flags go up. If the poor performer continues getting low scores then the exit option may be considered. Ov er the years TCS has found the pattern that leads to the maximum decline in perf ormance boredom. If employees work for more than two years on the same project, typically either their performance dips or they leave the organization. To avoid that, TCS shuffles its employees between projects every 18 months or so. Perform ance drops if motivation drops. Employee utilization rate in TCS is about 76% tha t is highest in the industry. At the heart of an employees satisfaction lies th e fact that his performance is being appreciated and recognized. TCSs performan ce management system has metamorphosed into 38

one that emphasizes objectivity and a system that mandates performance evaluatio n against predetermined criteria. What deserves special mention is the active pa rticipation of the senior management in the determination of guidelines for the performance appraisal process. The process ensure buy in of the employees since the guidelines for the rating system and its conversion into money terms is not unilaterally decided by HR but is a consensus of a cross functional team with re presentation from all levels. 3.5.2Talent retention: The attrition rate of 11.4% in fiscal 2009 (previous year 12.6%) is the lowest in the industry. This low attrition rate has been achieved by continuously investing in learning and development programs for employees, c ompetitive compensation, creating a compelling work environment, empowering empl oyees at all levels as well as a well structured reward and recognition mechanis m. 3.6 Community Relations (Outside India) TCS continues to carry forward its corpo rate sustainability in USA; The American cancer society has commended TCS for it s active participation in fund-raising walks in Minneapolis, Detroit & support o f its Hope lodge initiatives for cancer survivors. 39

 TCS has committed a grant of $ 75,00 for creating educational opportunities for children in Appalachian counties of Ohio. In UK, TCS regularly partners on socia l causes along with some of its clients in fundraising. TCS supports the Stepney football club in East London for less privileged youth. TCS has trained them in social skill and business skill besides organizing a football training tour to Kolkata and Jamshedpur. In china, TCS has been active with the HOOPE school proj ect in Beijing which ahs more than 200 students from less privileged families. T CS Uruguay has supported the Endeavour program since 2005 which is a training prog ram to groom local entrepreneurs from all over the latin America. TCS has contin ued its support of the UN world food programs walk of life across Europe; as also the Down Syndrome Association in Singapore and Australia. 40

___________________________________________ BIBLIOGRAPHY ___________________________________________ 41

Bibliography 1. http://www.yuvajobs.com/company/tcs/index.asp 2. http://kolkatablogs.blogspot .com/2006/12/tcs-culture-and-training.html 3. http://economictimes.indiatimes.co m/Infotech/ITeS/UK-legal-firm-LG-staffs-rail-againstTCS/articleshow/4223180.cms 4. http://infotech.indiatimes.com/articleshow/msid-153973,prtpage-1.cms 5. http: //hotviews.blogspot.com/2009/01/tcs-brings-touch-of-india-to-brazil.html 6. http ://www.tcs.com/news_events/press_releases/Pages/TataConsultancyServicesTCSannoun ces expansionofitsGlobalNetworkDeliveryModelwithanewcenterinMexico.aspx 7. http: //www.bpotimes.com/efytimes/fullnews.asp?edid=30159&magid=11 8. http://trendsnif f.com/2008/12/18/indias-tata-consultancy-tcs-eyes-china-market-to-hire-3500staff / 9. http://www.coolavenues.com/know/hr/eldos-tcs-2.php 10. http://www.expressin dia.com/news/messages.php?newsid=62949&from=0 11. http://www.payscale.com/resear ch/UK/Employer=Tata_Consultancy_Services,_Ltd./Salary/sho w_all 12. http://www.p ayscale.com/research/US/Employer=Tata_Consultancy_Services,_Ltd./Salary * All sites visited on 14 August 2009 42