Strategic Management

"Strategic management is an ongoing process that evaluates and controls the business and
industries in which the company is involved. It assesses its competitors and sets goals and
strategies to meet all existing and potential competitors. It then reassesses each strategy
annually or quarterly [i.e. regularly] to determine whether it has succeeded
or needs replacement by a new strategy."
Strategic management is important because is helps in setting detailed goals, analysing all our
internal and external resources, analysing our external environment, as well as stakeholder
views. Good corporate governance needs an efficient strategic management process. Strategic
management is important because it provides an organized method to help a business or
organization succeed. Without strategic management, careful plans and procedures could be
designed.
Strategic Management is the groundwork for a companys vision and allows a
company to be ready to capitalize on opportunities.

INTRODUCTION
TCS is a division of Tata Sons, the holding company of the $10.4 billion Tata Group, India's
best-known business conglomerate. Established in 1968, its founding was based on the
understanding that the management problems in Indian industry could be resolved through
the effective use of information technology. Under the leadership of F C Kohli, TCS
spearheaded the pioneering efforts in creating a globally recognizable brand for the Indian
software industry.
Strong linkages with academia, workplace professionalism, and in-house training and
learning helped TCS lay the foundation for growing into a world-class organization. TCS
invested heavily in software engineering practices and standards, software quality assurance,
software project management, software processes, and research and development in software
engineering and technology.
With more than three decades of experience in diverse areas of industry and commerce, Tata
Consultancy Services (TCS) offers end-to-end strategy consulting and system integration
services to Fortune 500 clients across 55 countries. With over 100 offices in 32 countries,
TCS employs 24,000 consultants and has 100,000 man-years of experience. TCS posted
revenues of Rs 5,012 crores ($1.04 billion) in 2002-2003
TCS leverages its expertise in its service practices eBusiness, Application Development
and Maintenance, Architecture and Technology Consulting, Engineering Services, eSecurity,
Large Projects, Quality Consulting, and Infrastructure Development and Management to
provide strategic consulting and system integration services to worldwide clients in banking,
insurance, other financial services, telecom, manufacturing and process industries, retail,
transportation, healthcare, government and utilities.
Besides providing IT solutions to its clients, TCS develops and markets a variety of products
in nearly all streams of industry. It has developed products such as Hospital Management
System for the healthcare industry, eIBS, NCS, FIG and Quartz for the banking and
financial services industry, CemPac for the cement industry, TARABS, Insurance Product

Designer Workbench and Issue Quote for the insurance industry, and also software
development tools such as MasterCraft, Assent, DataClean and Infrex.
Collaborative research with industry and academia, partnerships with global technology
leaders, and innovative projects for over 1,000 clients give TCS an in-depth knowledge of the
global economy. Its SEI-CMM (Software Engineering Institutes Capability Maturity Model)
Level 5 status, the expertise of its consultants, its world-class products, and proven offshore
capabilities strengthen TCSs value proposition (eight of the US Fortune top 10 are TCS
clients).
TCS follows a continuous quality-enhancement process, and 15 of its delivery centers in
India have been assessed at SEI-CMM Level 5. All of TCSs major development centres are
ISO 9001:2000 certified, and its quality management system is also ISO 9001:2000
compliant.

HISTORY
1968 to 2000
Tata Consultancy Services Ltd (TCS) was founded in 1968 by a division of Tata Sons
Limited. Its early contracts included providing punched card services to sister company
TISCO (now Tata Steel), working on an Inter-Branch Reconciliation System for the Central
Bank of India, and providing bureau services to Unit Trust of India.
In 1975, TCS conducted its first campus interviews, held at IISc, Bangalore. The recruits
comprised 12 Indian Institutes of Technology graduates and three IISc graduates, who
became the first TCS employees to enter a formal graduate trainee programme.
In 1979, TCS delivered an electronic depository and trading system called SECOM for the
Swiss company SIS SegaInterSettle. TCS followed this up with System X for the Canadian
Depository System and automating the Johannesburg Stock Exchange. TCS associated with a
Swiss partner, TKS Teknosoft, which it later acquired.
In 1981, TCS established India's first dedicated software research and development centre,
the Tata Research Development and Design Centre (TRDDC) in Pune.
In 1985 TCS established India's first client-dedicated offshore development centre, set up for
clients Tandem.

In the early 1990s the Indian IT outsourcing industry grew rapidly due to the Y2K bug and
the launch of a unified European currency, Euro. TCS created the factory model for Y2K
conversion and developed software tools which automated the conversion process and
enabled third-party developer and client implementation.

2000 to present
By 2008, TCS's e-business activities were generating over US$500 million in annual
revenues.
On 25 August 2004, TCS became a publicly listed company.
In

2005,

TCS

became

the

first

India-based

IT

services

company

to

enter

the bioinformatics market.

In 2006, TCS designed an ERP system for the Indian Railway Catering and Tourism
Corporation.
In 2008, TCS undertook an internal restructuring exercise which aimed to increase the
company's agility.
TCS entered the small and medium enterprises market for the first time in 2011, with cloudbased offerings. On the last trading day of 2011, TCS overtook RIL to achieve the highest
market capitalisation of any India-based company.
In the 2011/12 fiscal year, TCS achieved annual revenues of over US$10 billion for the first
time.
In May 2013, TCS was awarded a six-year contract worth over 1100 crores to provide
services to the Indian Department of Posts.

OPERATIONS
As of 31 March 2013, TCS had 199 offices across 44 countries and 124 delivery centers in 21
countries. At the same date TCS had a total of 58 subsidiary companies.

Locations

TCS has operations in the following locations:

India: Ahmedabad, Bangalore, Baroda, Bhubaneswar, Chandigarh, Chennai, Coimbatore, De
lhi, Gandhinagar, Goa, Gurgaon, Guwahati, Hyderabad, Indore, Jamshedpur, Kochi, Kolkata,
Lucknow, Mumbai, Nagpur, Noida, Pune and Trivandrum
Africa: South Africa, Morocco
Asia

(excluding

India): Bahrain, China, Israel, Dubai, Hong

kong, Indonesia, Japan, Malaysia, Philippines, Saudi

Arabia, Singapore, South

Korea, Taiwan, Thailand

Australia: Australia
Europe: Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Republic

of

Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and
United Kingdom.
North America: Canada, Mexico and United States.
South America: Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Uruguay.

PRODUCTS AND SERVICES

TCS and its 59 subsidiaries provide a range of information technology-related products and services
including application development, business process outsourcing, capacity planning, consulting,
enterprise software, hardware sizing, payment processing, software management and technology
education services. Its established software products are TCS BaNCS and TCS MasterCraft.

SERVICE LINES
TCS' services are currently organised into the following service lines (percentage of total TCS
revenues in the 2012-13 fiscal year generated by each respective service line is shown in
parentheses):

Application development and maintenance (42.80%);

Asset leverage solutions (2.70%);

Assurance services (7.70%);

Business process outsourcing (12.50%);

Consulting (3.00%);

Engineering and Industrial services (4.60%);

Enterprise solutions (15.20%); and

IT infrastructure services (11.50%).

INDUSTRIES SERVICED

Banking and financial services

Energy oil and gas , oil field services and renewables
Government
Healthcare
High-tech
Insurance
Life sciences
Manufacturing

Media and information services

Resources mining ,metals and construction
Retails and consumer products
Telecom
Travel, transportation and hospitality
Utilities
Financial Information: Revenue of $11.6 billion; up 13.7% over prior year;
operating margin of 27% and net income at $2.6B; up 15.6% (fiscal year ending
March 31, 2013).

BOARD OF DIRECTORS
Non-Executive Board Members

Cyrus Mistry, Chairman

S Ramadorai, Vice Chairman

Prof. Clayton M Christensen, Director

Aman Mehta, Director

Dr. Ron Sommer, Director

Venkatraman Thyagarajan, Director

Dr. Vijay Kelkar, Director

Ishaat Hussain, Director

Phiroz A Vandrevala, Director

OP Bhatt, Director
Executive Board Member

N Chandrasekaran, Chief Executive Officer and Managing Director

SUBSIDIARIES
TCS subsidiaries as on March 31, 2013 include the following:

APOnline Limited

C-Edge Technologies Limited

CMC Americas Inc.

CMC eBiz Inc.

CMC Limited

Computational Research Laboratories Inc.

Computational Research Laboratories Limited

Diligenta 2 Limited

Diligenta Limited

MahaOnline Limited

MGDC S.C.

MP Online Limited

MS CJV Investments Corporation

Nippon TCS Solution Center Limited

PT Financial Network Services

PT Tata Consultancy Services Indonesia

Retail FullServe Limited

Tata America International Corporation

Tata Consultancy Services (Africa) (PTY) Ltd.

Tata Consultancy Services (China) Co., Ltd.

Tata Consultancy Services (Philippines) Inc.

Tata Consultancy Services (South Africa) (PTY) Ltd.

Tata Consultancy Services (Thailand) Limited

Tata Consultancy Services Argentina S.A.

Tata Consultancy Services Asia Pacific Pte Ltd.

Tata Consultancy Services Belgium S.A.

Tata Consultancy Services Canada Inc.

Tata Consultancy Services Chile S.A.

Tata Consultancy Services Danmark ApS

Tata Consultancy Services De Espana S.A.

Tata Consultancy Services De Mexico S.A., De C.V.

Tata Consultancy Services Deutschland GmbH

Tata Consultancy Services Do Brasil Ltda

Tata Consultancy Services France SAS

Tata Consultancy Services Japan Ltd.

Tata Consultancy Services Luxembourg S.A.

Tata Consultancy Services Malaysia Sdn Bhd

Tata Consultancy Services Morocco SARL AU

Tata Consultancy Services Netherlands BV

Tata Consultancy Services Osterreich GmbH

Tata Consultancy Services Portugal Unipessoal Limitada

Tata Consultancy Services Qatar S.S.C.

Tata Consultancy Services Sverige AB

Tata Consultancy Services Switzerland Ltd.

Tata Information Technology (Shanghai) Company Limited

TATASOLUTION CENTER S.A

PROFILE OF THE COMPETITIOR

Accenture

plc is

a multinational management

consulting, technology

services,

and outsourcing company. Its incorporated headquarters are in Dublin,Republic of Ireland. It

is the world's largest consulting firm as measured by revenues and is a Fortune Global
500 company. As of 2013, the company reported net revenues of $28.6 billion with
approximately 275,000 employees, serving clients in more than 200 cities in 56
countries.]Accenture has more employees in India than any other country; in the US, it has
about 40,000 employees and 35,000 located in the Philippines.Accenture's current clients
include 91 of the Fortune Global 100 and more than three-quarters of the Fortune Global
500. Since September 1, 2009 the company has been incorporated in Ireland.

Accenture was chosen to replace CGI Group as the lead contractor for the Obamacare
website in January 2014.
Accenture common equity is listed on the New York Stock Exchange and was added to
the S&P 500 index on July 5, 2011.
Accenture organizes its services and people in these three primary cross-functional
groupings. Accenture client engagement teams typically consist of a combination of industry
experts, capability specialists and professionals with local market knowledge.
Workforces
The four workforces serve clients in the areas of consulting, technology, and outsourcing, as
well as the company itself. This is almost always an internal designation as it is common
place for Accenture employees to work in blended teams for a variety of reasons.

Consulting: Focus on management consulting, process design work and the

application of technologies to business. Responsible for sales, delivery, and leadership of
most of Accenture's project-based work.

Services: Most focus on outsourcing engagements in the areas of business operations,

IT, applications development and maintenance, help desk services, and HR. As part of
some outsourcing deals, clients' internal teams can be "re-badged" as Accenture
employees aligned to this workforce. Sometimes they work on Consulting projects or as
internal Enterprise teams.

Solutions: The Accenture Technology Solutions subsidiary focuses on the specific

technology skills needed to deliver projects or outsourcing arrangements. Comprises the
majority of Accenture's employees in delivery centers in developing countries like Brazil,
India, and the Philippines.

Enterprise: Focus on managing and supporting all the activities across Accenture's
business, including legal, security, facilities, marketing, and client financial management.
SYNOPSIS :

Accenture is a global management consulting, technology services and outsourcing

company, with approximately 281,000 people serving clients in more than 120 countries.
Combining unparalleled experience, comprehensive capabilities across all industries and
business functions, and extensive research on the worlds most successful companies,
Accenture collaborates with clients to help them become high-performance businesses and
governments. The company generated net revenues of US$28.6 billion for the fiscal year
ended Aug. 31, 2013

OTHER COMPETITORS:

INFOSYS
WIPRO
HCL TECH
TECH MAHINDRA
ORACLE FIN SERV
NIIT TECH

PROFILE OF THE INDUSTRY

Information technology in India is an industry consisting of two major components: IT
Services and business process outsourcing (BPO). The sector has increased its contribution to
India's GDP from 1.2% in 1998 to 7.5% in 2012. According to NASSCOM, the sector
aggregated revenues of US$100 billion in 2012, where export and domestic revenue stood
at US$69.1 billion andUS$31.7 billion respectively, growing by over 9%.
Information technology is playing an important role in India today & has transformed
India's image from a slow moving bureaucratic economy to a land of innovative

entrepreneurs.
The IT sector in India is generating 2.5 million direct employment.India is now one of the
biggest IT capitals of the modern world and all the major players in the world IT sector are
present in the country.

The major cities that account for about nearly 90% of the sector's exports
are Bangalore, Chennai, Kolkata, Hyderabad, Trivandrum, Noida, Mumbai and Pune. Bangal
ore is considered to be the Silicon because it is the leading IT exporter. Exports dominate the
industry and constitute about 77% of the total industry revenue. However, the domestic
market is also significant with a robust revenue growth. The industrys share of total Indian
exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in
FY2012. According to Gartner, the "Top Five Indian IT Services Providers" are Tata
Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.
This sector has also led to massive employment generation. The industry continues to be a net
employment generator - expected to add 230,000 jobs in FY2012, thus providing direct
employment to about 2.8 million, and indirectly employing 8.9 million people. [1] Generally
dominant player in the global outsourcing sector. However, the sector continues to face
challenges of competitiveness in the globalized and modern world, particularly from
countries like China and Philippines.
India's growing stature in the Information Age enabled it to form close ties with both
the United States of America and the European Union. However, the recent global financial
crises has deeply impacted the Indian IT companies as well as global companies. As a result
hiring has dropped sharply, and employees are looking at different sectors like the financial
service, telecommunications, and manufacturing industries, which have been growing
phenomenally over the last few years. India's IT Services industry was born in Mumbai in
1967 with the establishment of Tata Group in partnership with Burroughs. The first software
export zone SEEPZ was set up here way back in 1973, the old avatar of the modern day IT
park. More than 80 percent of the country's software exports happened out
of SEEPZ, Mumbai in 1980s.

SWOT ANALYIS IT-ITES INDUSTRY

(CONSIDERING INDUSTRY AND ANY IT FIRM IN GENERAL)

STRENGTH

COST ADVANTAGE

WEAKNESS

EXCESSIVE DEPENDENCE ON
US FOR REVENUE
GENERATION

BREADTH AND SERVICES

HIGH RATES OF ATTRITION

DECREASING COMPETITIVE

OFFERED

EASE OF SCALABILITY

ADVANTAGES

QUALITY AND MATURITY OF

PROCESS

EXCESSIVE DEPENDENCE ON
BFSI SECTOR

GLOBAL AND 24/7 DELIVERY

CAPABILITY

OPPORTUNITIES

GREATER SCOPE FOR

THREATS

PRODUCT INNOVATION

GREATER SCOPE TO SERVICE

GLOBAL ECONOMIC
SLOWDOWN

INCREASED COMPETITION

DOMAINS OTHER THAN BFSI

FROM FOREIGN FIRMS LIKE

LIKE TRANSPORTATION ,

ACCENTURE , IBM ETC

INFRASTRUCTURE ETC.

TCS STRATEGIC ANALYSIS:

RUPPE DOLLAR FLUCATATION

BUILDING YOUR COMPANYS VISION

Vision (Provides guidance about what core to preserve and what future to stimulate progress
toward).
To be among the global top 10 by 2010 .The achievement of the vision would be measured
in terms of revenues, profitability, number of fortune 500 customers and technology
leadership.
Core purpose (Companys reason for Being)
To help customers achieve their business objectives by providing innovative, best-inclass consulting, IT solutions and services. This is what Business Excellence is all about.
CMM and TBEM imitative are steps in this direction
Core Values (What we stand for ???)
Integrity, leading change, excellence, respect for the individual, learning and sharing
.Such values hold pride of place in the scheme of things and would uphold in the quest for
Business Excellence.
Integrity: Integrity as a value is a key to all Tata companies. It means ensuring the highest
level of ethical behavior in all business and professional dealings
Respect for the Individual: TCS has many avenues that empower each associate as an
individual. Through the way it is organized in project teams, through the iQMS. Through the
Ultimax one can plan ones career, update competencies. All this provides hassle-free work
environment for the individual.
Learning and sharing: TCS has a collective strength of 22000 knowledge workers. Great
idea have broken the walls of the center and have become organization wide practices like
IPMS, like PAL, like Star of the month
Excellence: TCS is trying to bring about a culture of excellence by making visionary
leadership, customer driven excellence, agility, Focus on future, Management by fact etc. as
the base of TBEM model.

LEADING CHANGE
If transformation is the name of the game then India's first billion dollar IT services company
is all set for it. Tata consultancy Services (TCS) chief executive officer S Ramadorai calls it
an allout change. A change , which he explains, gains importance because of the extra
dimension it adds to the company.
TCS is aggressively pursuing comapanys globalization effort. Globalization for TCS implies
an all out change. A change is important, not because its a good thing or a bad thing but
because it gives TCS the extra dimension to address the global delivery need. This
change is reflected in comapnys global delivery model and extends to
companys global development centres. All of which are parts of companys
globalization effort.

Steps Taken by TCS for transformation:

Establishing a Sense of Urgency

Market reality: Globalization is todays essence
Major opportunities lies in overseas market

Forming a powerful Guiding coalition

TCS increases the diversity of its offerings through strategic alliances with
global leaders in
technology and eBusiness, such as IBM, Netscape, Microsoft, SAP, Oracle and
Compaq, to name
a few. TCS is also a founder member of the Internet Security Alliance (ISA) and a
member of the
Universal Description, Discovery and Integration project (UDDI).

Creating a vision
To get an extra dimension to address the global delivery need

Communicating the vision

TCS is aggressively pursuing companys globalization effort. This vision is
communicated by
press releases, information on internet.

Empowering others to act on the vision

TCS is aggressively pursuing companys globalization effort
To that extent TCS have to keep innovation engine growing, grow global delivery
centres, and
leverage any talent or resource in the right way

Planning for and creating short term wins

An essential part of this is reflected in the customers experience where TCS
stress on aspects
like localization, ability to deliver the same quality on a global basis and
companys value
proposition in a facility outside India.

Consolidating improvements and producing still more change

People who become part of this organization too have to be global in nature.
And this is another
place where acceleration will take place, more so as TCS take in people not only
from India but
from other countries as well.

Institutionalizing new approaches

And lastly are companys technology alliances and companys product alliances.
TCS want
companys alliance partners to feel that they are dealing with the best solutions
provider, the best
organization

STRATEGY AND THE INTERNET

The area where TCS focused last year and will carry forward this year too is digitizing the
organization and connecting employees together both in TCS and in CMC a real challenge
for the company. TCS have made a significant investment in the project. In April 2002, TCS
did the employees services digitally, while in the second phase TCS is creating a knowledge
management base and customer relationship management.
This is available in the UK and TCS is rolling it across the world connecting suppliers and
customers through intranet. Three years ago, TCS had many independent, standalone
systems, multiple databases created in different parts of the organization. To generate a MIS,
one had to collate information from a number of systems. Both in terms of accuracy of
information and the effectiveness to take decisions based on the information, this was a major
problem. If TCS want to run an organization using real-time information as quickly as
possible, TCS should have an electronic transaction-based system. Some companies call it
digital nervous system, while some call it enterprise integration.

HOW INTERNET HAS INFLUENCED SOFTWARE SERVICES

INDUSTRY

THREATS OF SUBSTITUTE
SOLUTIONS / SERVICES

BARGAINING
POWER OF
SUPPLIERS LIKE
SAP , BAAN ,

RIVALRY AMONG TCS ,

INFOSYS, WIPRO ,
COGNIZANT AND OTHERS

BARRIERS TO ENTRY

BARGAINING POWER OF
ENTERPRISES/CLIENT
SEEKING SOLUTIONS /
SERVICES

THE WORK OF LEADERSHIP

TCS follows the six principals for leading adaptive work:

1. Getting on the balcony: the business leaders at TCS view patterns as if they are on a
balcony. Following activities provide them the platform :
Employee Satisfaction Survey (ESS) is conducted regularly to gauge employee
satisfaction and obtain feedback on work conditions and work practices.
Performance appraisals: they are carried out to appraise the performance of employees.

Three kind of appraisals are followed

o Annual appraisal: It is conducted once in a year to ell yearly performance
o Project end performance appraisal: it is done when employee is released from a
project of 3 months or more
o Appraisals for performance rewards.

2. Identifying the adaptive challenge: The leaders at TCS have quickly identified the
adaptive challenges which include
Deploying organization wide network to tap the opportunities provided by the internet
Anticipate a number of technologies that would have an impact in future
Making TCS a global enterprise
Becoming top 10 global company

3. Regulate distress: Distress at TCS is maintained as follows

Grievance redressal
Sports activities like Hand Cricket
Organizing family day where employees bring their families to show how they work
Organizing chess festival with unique rules called suicide chess
Festival celebrations at TCS e.g. diwali celebrations with rangoli competitions etc.

4. Maintain disciplined attention: For this TCS takes following steps:

Adheres to TCOC ( Tata Code of Conduct)
Professionalism at work Dressing and personal grooming

5. Giving work back to the people: TCS get people to assume more responsibility as
follows:
TCS indulges in a People Engagement activity called PEEP for strengthening
communication process. It involves conducting employee meetings across functions.
PEEP stands for
P Proactive
E Employee
E Engagement
P Programme
Program called PROPEL is followed to understand what an associate can do to achieve
his and organizational goals. It stands for :
P Professional excellence
R Role enhancement
O owning TCS culture
P Personal growth
E employee involvement
L Learning

6. Protecting Voices of leadership: A succession planning for key positions is done. It has
following steps:
Critical positions are identified
Mechanism to capture development needs for critical positions
A candidate pool for each critical position is developed

SWOT ANALYSIS OF TCS

A tool that identifies the strengths, weaknesses, opportunities andthreats of an organization.
Specifically, SWOT is a basic, straightforward model that assesses what an organization can
and cannot do as well as its potential opportunities and threats. The method of SWOT
analysis is to take the information from an environmental analysis and separate it into internal
(strengths and weaknesses) and external issues (opportunities and threats). Once this is
completed, SWOT analysis determines what may assist the firm in accomplishing its
objectives, and what obstacles must be overcome or minimized to achieve desired results.

STRENGTHS , WEAKNESS , OPPORTUNITIES AND THREATS

LOCATION OF

FAVOURABLE

UNFAVOURABLE

FACTOR
INTERNAL

STRENGTHS

WEAKNESS

EXTENSVEGLOBAL
RESEARCH
STRONG FINANCIAL
PERFORMANCE
EMPLOYEE
MANAGEMENT SKIILS

SIGNIFICANT
EXPOSURE TO
FINANCIAL
SERVICES MARKET
LACK OF SCALE IN
CONSULTING
OPERATIONS

EXTERNAL

OPPORTUNITIES

THREATS

FOCUS ON SMB

INCREASING

SEGMENT
GROWTH IN

EMPLOYEE COSTS
INTENSE

WORLDWIDE IT
SERVICES

COMPETITION
CONSOLIDATION IN
THE END MARKETS
RUPEE
DEPRECIATION

BCG MATRIX FOR TCS

CONSULTING PACKAGED
IMPLEMENTATION KPO
ENGINEERING AND
BPO INFRASTRUCTURE

INDUSTRIAL SERVICES.

SERVICES

NONE
APPLICATION
DEVELOPMENT AND
MAINTENANCE
SOFTWARE PRODUCTS.

HIGH

RELATIVE POSITION (MARKET SHARE)

CORPORATE STRATEGY
The Growth Opportunity

LOW

TCS operates in a large, growing global market for IT and IT-enabled services. Globally,
organizations are spending more on IT as new technologies emerge, offering unique
opportunities to gain a competitive advantage. Moreover, industries and geographies
that lagged behind others in leveraging technology are now catching up. Further, the
proportion of IT services budgets that is spent on external providers is going up as the shelflife of technologies is reducing and corporations are looking for greater efficiency and
variability in their costs. With a minuscule market share in this growing market, there is much
headroom for TCS longer-term growth.
Strategy For Longer-Term Growth
TCS strategy for longer-term growth is to continually extend the core IT services business by
expanding its geographic reach, industry coverage and service capabilities and deepening
existing client relationships, building or acquiring emerging businesses and adopting or
creating new business models and business solutions through continuous innovation.
Key elements of this strategy are summarized here:
Customer-centricity
Full Services Capability

Global Network Delivery Model (GNDM)

Strategic Acquisitions

Non-linear business models

Customer-centricity: We seek to build, nurture and deepen customer relationships so we are

trusted strategic partners to our customers. Our industry-segmented, customer-centric
organization is an important enabler that has ensured high levels of accountability, superior
customer service and intimacy.
Full Services Capability: TCS has been investing in building a comprehensive, integrated
portfolio of services to capture the entire value chain of IT, presenting a compelling value

proposition for global enterprises making us a one-stop shop for many key clients,
significantly deepening the relationship and boosting our share of the wallet.
Global Network Delivery Model (GNDM): TCS' GNDM lets us seamlessly and
uniformly deliver services to global customers from multiple locations across India, China,
Europe, North America and Latin America. Teams separated by time zones collaborate on
projects, leveraging all of TCS' assets while subscribing to one global service standard.
It uses multiple levers of time zone, language, skills and local business knowledge to deliver
high quality business solutions seamlessly across the globe, using a globally connected
workforce, integrated delivery processes and multi-tiered infrastructure. This model
developed by TCS is now recognized as the benchmark of excellence in software
development. For large clients expanding beyond their home markets, the scale and depth of
our GNDM capability makes us their preferred strategic partner.
Strategic Acquisitions: While primarily focusing on organic growth, TCS is also open to
selective strategic acquisitions in order to penetrate select markets, strengthen verticals and
enhance service offerings.
Non-linear Business Models: TCS has been building non-linear growth businesses that can
enable revenue growth without commensurate headcount growth. Non-linearity in the
existing businesses comes from productivity-enhancing tools, frameworks, solution
accelerators and managed services engagements.
In addition, TCS is pursuing three strategic initiatives for non-linear growth:

Software Products (Asset Leveraged Solutions)

Platform-based BPO services (Process Clouds)

iON an IT-as-a-service solution for small and medium business.

TCS RESOURCES ANS CAPABILITIES

Tcs has over 143000+ world class professionals. 30% of the workforce is women . nonindain nationals comprises 8.3% of tcs workforce. Tcs employees are from across 67
nationalities.

PRODUCT DEVELOPMENT STRATEGY

CURRENT MARKET: USA AND EUROPE
NEW PRODUCT: consultancy and package implementation services in the relatively
highly growing sector especially life sciences and healthcare, aviation sector and kpo
services.

RECOMMENDATION: Concentrate on building expertise in these domains by

strategic acquisition.

KEY DIFFERENTAITORS OF TCS

Pioneer in the industry and the brand
Having started in 1968, tcs has established himself as the industry leader. Being part of the
trusted Tata group is also a big differentiators for tcs givings its strong brand strength.

Integrated full services player

Portfolios of offerings extends from consulting to implemtation, testing and support from
engineering services to bpo , from products to end-to-end solutions.

Collaboration with multiple stakeholders

Having worked on large global scale enterprise projects, tcs appreciates the need of flexibility
to work with multiple stakeholders from customers,partners , and other service providers. Tcs
have developed innovative engagement models that have proven tcss ability to deliver
significant value to its customers in managing their projects as the sole solution provider, or
prime/lead partner, or supporting partner.

Global network delivery model

Unique network of 79 delivery centres in brazil , china, uk , japan , Australia , chile ,
Singapore and india that operate at the same quality, security and skills levels,giving the
custoners the same experience of certainity across the organization globally with a lower total
cost of ownership.

High quality and maximum security

In 2005, tcs was awarded enterprise-wide triple certification for:
Quality (iso 9001:2000) , security (bs 7799-2:2002) and services (bs 15000-1:2000)

Innovation network
Tcs has established 19 labs with strong links to starts-ups , academia and alliance partners to
continuosly develop innovative solutions for their customers.

Strategic partners :
IBM GLOBAL SYSTEM INTEGRATOR PARTNER

ORACLE

GLOBAL

SYSTEM

INTEGRATOR

AND

GLOBAL

CERTIFIED

ADVANTAGE PARTNER
MICROSOFT GLOBAL SYSTEM INTEGRATOR PARTNER
SAP GLOBAL CONSULTING PARTNER

GROWTH ENGINE PARTNERS :

SIEBEL CONSULTING PARTNER
WEB METHODS GLOBAL SYSTEM INTEGRATOR, PREFERRED OFFSHORE
PARTNER
BEA TCS IS BEAS STRATEGIC PARTNER
SUN- GSS PARTNER , SYSTEM INTEGRATOR PARTNER

BUSINESS CONTINUITY
TCS follows a well defined and mutually agreed(with the customer) business continuity and
disaster recovery plan . the BCP is tested on the pre determined frequency .