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 company’s 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 wo rldwide clients in banking, ban king, 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 a nd
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 Institute’s Capability Maturity Model) Level 5 status, the expertise of its consultants, its world-class products, and proven offshore capabilities strengthen TCS’s 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 TCS’s 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 19 68 by a division of o f 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 Techn ology graduates and three IISc graduates, gradu ates, who became the first TCS employees to enter a formal fo rmal graduate trainee programme. pro gramme. 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 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 cloud based 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 May 2013, TCS was awarded awarded a six-year contract worth 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, Nagpur, Noida, Pune 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 oil and gas , oil field services and renewables
Government
Healthcare
High-tech
Insurance
Life sciences
Manufacturing
Media and information services
Resources – mining mining ,metals and construction
Retails and consumer products
Telecom
Travel, transportation and hospitality
Utilities
bil lion; up 13.7% over prior prio r year; Financial Information: Revenue of $11.6 billion; operating margin mar gin 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 Ex ecutive Officer and Managing Managin g 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 Dublin,,Republic of Ireland. Ireland. It is the th e world's world 's largest lar gest consulting firm as measured measu red by b y revenues reven ues 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. 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 emplo yees to work in blended teams for a variety v ariety of reasons.
Consulting: Focus on management on management consulting, process 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, le gal, security, facilities, marketing, marketi ng, and client financial management. mana gement. SYNOPSIS : Accenture is a global management management consulting, technology services and outsourcing 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 world’s most succes sful 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 199 8 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 mod ern world and all the major players pla yers in the world IT sector are present in the country. countr y.
The
major
cities
that
account
for
about
nearly
90%
of
the
sector's
exports
are Bangalore, Chennai, Kolkata, Hyderabad, Trivandrum, Noida, Mumbai and Pune 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 industry’s 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" Pro viders" 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 people..[1] Generally dominant player in the global globa l outsourcing sector. However, Howeve r, the sector continues co ntinues to face challenges of competitiveness in the globalized and modern world, particularly from countries like China and Philippines. India's growing growin g stature in the Information Age Ag e enabled it to form close ties with both the United States of America and the European Union. However, the recent global 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 SEEPZ, Mumbai in 1980s.
of
the
country's
software
exports
happened
out
SWOT ANALYIS IT-ITES INDUSTRY (CONSIDERING INDUSTRY AND ANY IT FIRM IN GENERAL) STRENGTH
WEAKNESS
COST ADVANTAGE
EXCESSIVE DEPENDENCE ON US
FOR
REVENUE
GENERATION
BREADTH
AND
SERVICES
HIGH RATES OF ATTRITION
DECREASING
OFFERED
EASE OF SCALABILITY
COMPETITIVE
ADVANTAGES
QUALITY AND MATURITY OF
PROCESS
EXCESSIVE DEPENDENCE ON BFSI SECTOR
GLOBAL AND 24/7 DELIVERY CAPABILITY
OPPORTUNITIES
GREATER
SCOPE
THREATS FOR
PRODUCT INNOVATION
GLOBAL
ECONOMIC
SLOWDOWN
GREATER SCOPE TO SERVICE
INCREASED
COMPETITION
DOMAINS OTHER THAN BFSI
FROM FOREIGN FIRMS LIKE
LIKE
ACCENTURE , IBM ETC
TRANSPORTATION
,
INFRASTRUCTURE INFRASTRUCTURE ETC.
RUPPE FLUCATATION
DOLLAR
TCS STRATE GI C ANAL YSI YSI S:
BUILDING YOUR COMPANY’S 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 (Company’s 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 one’s 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’
visionary 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 comapany’s 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 comapny’s global delivery model and extends to company’s global development centres. All of which are parts of company’s globalization effort. effort .
Steps Taken by TCS for transformation:
Establishing a Sense of Urgency Market reality: Globalization is today’s 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 aggressively pursuing company’s globalization effort. This vision is communicated by press releases, information on internet.
Empowering others to act on the vision TCS is aggressively aggressively pursuing company’s 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’ customers’ experience where TCS stress on stress on aspects like localization, ability to deliver the same quality on a global basis and company’s value proposition in a facility outside India.
Consolidating improvements 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 company’s technology alliances and company’s product alliances. TCS want company’s alliance partners 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 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 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 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
RIVALRY AMONG TCS , INFOSYS, WIPRO , COGNIZANT AND OTHERS
BARRIERS TO ENTRY
THE WORK OF LEADERSHIP
BARGAINING POWER OF ENTERPRISES/CLIENT SEEKING SOLUTIONS /
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 activit ies 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 mor e 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 di sciplined attention: For this TCS takes following steps:
· Adheres to TCOC ( Tata Code of Conduct) · Professionalism at work – Dressing 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, o pportunities 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
SIGNIFICANT EXPOSURE TO
FINANCIAL
FINANCIAL
PERFORMANCE EMPLOYEE
SERVICES MARKET LACK OF SCALE IN
MANAGEMENT SKIILS
CONSULTING OPERATIONS
EXTERNAL
OPPORTUNITIES
FOCUS ON SMB
THREATS
SEGMENT GROWTH IN
EMPLOYEE COSTS
INTENSE COMPETITION
WORLDWIDE IT SERVICES
INCREASING
CONSOLIDATION IN THE END MARKETS
RUPEE
DEPRECIATION
BCG MATRIX FOR TCS CONSULTING
BPO
PACKAGED
IMPLEMENTATION
KPO
ENGINEERING
AND
INFRASTRUCTURE INDUSTRIAL SERVICES.
SERVICES
NONE
APPLICATION DEVELOPMENT
AND
MAINTENANCE SOFTWARE PRODUCTS.
HIGH
RELATIVE POSITION (MARKET SHARE)
LOW
CORPORATE STRATEGY The Growth Opportunity
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 l everaging technolog technology y are now catching up. Further, Fur ther, the th e proportion of IT services budgets that is spent spe nt on external providers is going up as the shelfs helflife 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 -term growth. much headroom for TCS’ longer -term Strategy For Longer-Term Growth
TCS’ strategy for longer-term growth is to continually extend the core IT services business
by expanding ex panding 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 str ategic 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 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 tcs’ s ability to deliver
significant value to its customers in managing their projects as the sole solution provider, or prime/lead partner, or supporting sup porting 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 GLOBAL SYSTEM INTEGRATOR PARTNER ORACLE – GLOBAL ADVANTAGE PARTNER
SYSTEM
INTEGRATOR
AND
GLOBAL
CERTIFIED
MICROSOFT – GLOBAL GLOBAL SYSTEM INTEGRATOR PARTNER SAP – GLOBAL GLOBAL CONSULTING PARTNER
GROWTH ENGINE PARTNERS : SIEBEL – CONSULTING CONSULTING PARTNER WEB METHODS – GLOBAL SYSTEM INTEGRATOR, PREFERRED OFFSHORE PARTNER BEA – TCS – TCS IS BEA’S 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 .
