BUSINESS STRATEGIES OF TATA CONSULTANCY SERVICES

TCS names its business divisions 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 excellence
framework-IQMS in time.
 A whole focus on customer retention and client relationship in order to
uphold the business revenue which is 95.6%
 Distinguished in low end services in both capital and price
 A solid protection from the money fluctuations with currency
prevarication.
 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 resolute strategy

where they are moving towards the requirements of customer and the nature of business
as like Middle East, Europe, and Asia-pacific. TCS focus much on customers and the
area 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.

GLOBAL STRATEGIES:

When the global strategy of TCS is being closely observed, it will illustrate an
influencing labour cost in South America, China and some parts of Europe. Employing
overseas experts into the post of Directors in order to obtain the frequent changes in the
business is also can be referred as one of the key strategies of TCS

 Clayton M Christensen(HSB Professor, joined TCS in 2006)

 Dr. Ron Sommer (former chairman of the board of management of Deuteshce
telecom AG, joined TCS in 2006)
 Laura M cha (Member of Executive Council of the Hong Kong special
Administrative Region(SAR) and Non-Executive Chairman of HSBC
investment, Asia ltd)

TCS have a keen view in looking US and UK for the Business Revenue markets and
India for the skilled employees. TCS is very keen in establishing global delivery centres
outside India which can demonstrate TCS as a Global company. TCS was the first one to
set the global delivery centre in China which distinguished TCS from other corporate
companies. In recent years TCS was frequently changing its approach towards global
market; recently

TCS reconstructed its structure towards its global operations to implement a Customer
centric and integrated approach which is anticipated to assist in avoiding the risk factors
arising from the Economic Meltdown in western countries. TCS’s operation units are
mainly divided into five main divisions.

The well established markets are North America, U.K and Western Europe and
the new markets are Latin America, Middle East, India and Eastern Europe. The new
restructured plan was considered as the very good change by the TCS as it is attaining
impetus in Europe and other markets, which is obvious in the company’s marked growth
rate of 40% every year. The operations In Middle East and Latin America had also seen a
substantial growth. TCS had built new delivery and offshore centres in Latin America
like Uruguay, Mexico and Brazil.

STRATEGIC ALLIANCES:

TCS is always keen in upholding the strategic relationships with various

International technology vendors. These relations are distinguished in various magnitudes
such as service provider, customer, supplier, and alliance partner. The relationships with
the international technology vendors have made TCS to maintain a holistic. TCS made a
joint venture with these vendors on joint research influencing each other strengths to
research and to develop the best breed offerings.

 Joint advancing engagements.

 Significantly new or improved solutions.
 Joint go-to-market strategies for the solutions.

ACQUISITION STRATEGY:

TCS is concentrating the growth in two ways the organic means and inorganic
means. The Inorganic way is in the course of acquisitions of companies which craft
business sense to TCS. The concerns should adjoin great value to TCS. The Business
with CMC is assisting TCS taking a very sharp gaze to the domestic Industry. Both
companies have synergies in the government sector. They made various agreements with
various companies some of them are the agreement with the citi group to transfer 12,000
employees in banking sectors for cash and external support in IT. Tata InfoTech Limited
(TIL) was merged in early 2006. It was also a software service company like TCS which
have branches around the world like America, Europe and Australia. Comparable to the
financial venture made greater

than, TCS yet again prolonged its banking commodities and shared its European
operations after attaining a 75% equity wager in its Switzerland-based partner, TKS-
Teknosoft. TKS was the marketing representative for TCS in Europe.

TCS: CO INNOVATION NETWORK (COIN):

TCS is following a coin strategy in order to face the competition as the

globalisation has created a elevated competition among the IT companies. It is necessary
for the IT companies in order to follow an innovative technology thus resulted in the
Advanced Information and Communication Technology which made practicable for
companies to collaborate and perform “Globally Distributed Network (GDN)”.
Disorderly improvements are not the consequence of a solitary technology pretended by
the minority of people but the combination of similar technologies may result in getting a
combined innovative technology which will be much more effective and useful for the
companies to perform globally. This concept of innovation network is not novel;
classically it was the technology releasing body e.g. IBM’s driven Innovation Networks
and Google’s Gartner Innovation networks are already been in existence, for TCS it is the
customer driven innovation network where the participants are delivery rudiments and
explorations.

SWOT ANALYSIS:

SWOT analysis is a prearranged loom to calculating the strategic position of a

business by identifying its strengths, weakness, opportunities and threats. SWOT offers
an uncomplicated way of analysing the results of marketing review. Internal strengths
and weakness are abridged as they communicated to external opportunities and threats.
(Jobbers; 2007)

It analysis the complete strategy of the company based on policies and the
business method which they follow. This pictures the company’s advantages and
disadvantages in company’s perspective

PESTL
Political:

The three major revenue zones of TCS are US, Europe and India. The political
structure in India is constant as the ruling party started to rule again after a majority win
in the 2009 General Election which is a positive view for the company as the political
influence will remain constant in this zone. In US the government had announced a new
rule on outsourcing as the companies which outsource the work outside US; they will not
get the Tax benefits which even creates a negative phase. TCS is very well established in
US as it can work from US itself, But even then the ratio of outsourcing the new projects
will be much reduced in future. The government organizations and PSU had decided to
give more domestic projects to TCS which is positive strategy.

Economic:

The Steady fluctuation in the International market and the fluctuation in the
country’s currency rate are considered to be the major negative influences. The Global
meltdown which paused the IT’s vigorous growth had reduced the IT business
internationally. But even then the TCS and other firms where managed to maintain their
breakeven profits. The Domestic Markets had grown by 20% and approximately reached
USD 25 billion in 2009-10 which was estimated by NASSCOM which is an advantage
for the Indian companies in order to maintain the equilibrium. The crash in the Real
estate market is also considered as one of the advantages for the companies as they can
buy sites for new branches for lesser rates and the reduction in the Rental costs. The rapid
increase in the complexities in IT Industry, the new innovative services and products
from competitors. The new competitors entering the IT market is not a very big threat but
also to be taken in account.

Social:English is taken as the official language of TCS which made the organization

to make the business dealings with the English speaking nations like US and Western
Europe. The manpower available in India is an added advantage for the Indian IT firms.
The availability of Technicians in India is bit more than the resources available to the
other countries. India is going to lead the next twenty years of spam for holding the
highest working population globally, which is a major advantage for all the IT
companies. The recent job cuts in US and other European countries where TCS widen
their business boundaries which lead to give new job offers to the native peoples, which
created a soft bond towards the company. The availability of high

quality manpower globally, the frequent and rapid transform in consumer lifestyles,
the improvement in the relationships between the clients.
Technological:

India is considered to be a well developed country in the telecommunication field

which provides the lowest call rate(1-2 US cents)which makes Indian firms like TCS to
thrive high in the field of BPO, as the core of these business is to communicate among
customers and company representatives. India holds the largest population with mobiles
and an average population expected to have the subscriber base of 503 million the end of
2010. TCS holds its global head quarters in India which has the highest telephone
network after china.TCS is much more concentrating in the next generation on wireless
which the global technology is attracted towards that.

Strategic Partners

 Microsoft - Global System Integrator Partner

 IBM - Global System Integrator Partner
 Oracle - Global System Integrator and Global Certified Advantage Partner
 SAP - Global Consulting Partner
Growth Engine Partners

 Siebel - Consulting Partner

 SUN - System Integrator Partner, GSS Partner
 BEA - TCS is BEA’ Strategic Partner
 Web Methods - Global System Integrator, Preferred Offshore Partner

Legal:

IT firms in India is frequently facing the legal issues from the employees and
other mutual competitors, Each Indian IT Company is extended their boundaries globally
and have their own global HR policies, all the IT companies including TCS have
undergone the issue of legal bonding made to make the employee to stick into their
companies for long term which is an negative aspect on TCS. Except in US TCS is
getting tax benefits globally.

ENIVRONMENT

The Environmental concern of TCS shoots from the Tata Group which is also
added in the “Code of Conduct”. TCS considers the change in the climate is considered
as the main aspect which affects the economic stabilities. TCS is much more concentrated
on the environmental issues like global warming, energy utilization, water consumption
and etc.

FUTURE PLANS:

TCS UK division and its subsidy is focusing on the Insurance market in the BPO,
the Diligenta’s deal with the pearl conformed their future plans of entering into the
Insurance Industry. TCS is planning to expand further in the globally in order to capture
new markets like China, Philippines, Asia-pacific, South America, Mexico and Eastern
Europe. TCS has invested around INR 500 crore in India in order to develop its domestic
infrastructure within India. TCS has invested around approx 150 billion in order perform
research on next generation technology and wireless
 "We are strengthening our product line-up to position the company for the future,
(Mr.Ramadorai, CEO)”. As the CEO of TCS said TCS has invested an respectable
amount of money in order to strengthen their product line-up

RECOMENDATIONS:

The first and prior recommendation is to change its vision statement as it views
and felt like a short viewed, as TCS should need a vision which reflects vigorous thinking
and enduring thinking. Anticipate observing the site persist to merge. Customers will
hunt for reducing expenses and focus on less supplier relationships as the market
deteriorates. TCS should take this occasion to get better its market positioning. Certify
promotion communicative it’s worth intention to all stakeholders fretful led. In market
Meltdowns, marketing can work as a differentiator. TCS should alter focus from Low
cost advantage to high quality services imposing a quality being the initiator in the
industry. Offer more high-end works in price chain. Rapidly adjust and expand client
assurance in high growth markets. In Financial Year 2009, Indian home market grown by
more than 20%, as well as TCS income from India augmented only by 6.46%. TCS
should influence its success (IRCTC success done by its subsidiary – CMC, Passport
project etc.) to constrain the augmentation in this market.

TCS should not be influenced exclusively by short-term shareholder pressure.

The depression is at the top of each company’s schema, but those suppliers tha

receive a long-term outlook will employ this occasion to organize for the primary
modifications in business dynamics that will appear. Those suppliers geared up for the
recent ecosystem will be the ones to prosper once the dark part of economic chaos have
lifted.

CONCLUSION:

TCS founded as the small computer centres now emerged as a very big multi-
national IT company in the span of 40 years. TCS which is considered as the one of the
oldest and biggest MNC from India is still growing in the spot-light with a new
dimension. The roots of TCS are also can be taken in account for this massive growth.
The growth of TCS in global market creates a positive impact on India and Indian
economy.