TCS

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m TCS has the wide spread economical

boundaries around 36 countries with


seven physical centers of operations
around the world. TCS was founded by
Tata group which was established by
jamstji Tata in 1868 an oldest and
respected group of companies in India.
The First chairman was Jahangir Ratanji
Dadabhoy followed by Nani Palkhivala.
The first general manager was F.C. Kohli
m TCS first assigned to offer punch card services to a sister
corporation, Tata Steel (TISCO). It later bagged the
nation's first domestic software project, the Inter-Branch
Reconciliation System (IBRS) for the Central Bank of India.
It has also provided bureau services to Unit Trust of India;
as a result TCS became one of the first organizations to
tender BPO services. In 1970s; Tata Consultancy Services
in full swing exporting its services. TCS's inaugural global
order came from Burroughs , one of the first business
computer manufacturers. TCS was assigned to write code
for the Burroughs machines for numerous US-based
clients. This knowledge helped TCS to bag its first onsite
project - the Institutional Group & Information
Company(IGIC), a data hub for ten banks, which served to
two million clients in the US, TCS was assigned to assert
and upgrade its computer systems. TCS holds the credit to
set off the first software research and development
centre, the Tata Research Development and Design Centre
(TRDDC) in 1981and in 1985 the first client committed
offshore development centre was established for Compaq
m TCS offers services in eight areas of service:
Business process Outsourcing , Business
Intelligence and performance Management,
Enterprise Solutions (CRM,ERP, and SCM) IT
Consulting, Application Development and
Maintenance , Engineering and Industrial
Services, IT Infrastructure services, Testing
and quality Assurance. TCS·s are divided in
following divisions Financial Services,
Energy and Utility, Banking, Life sciences
and Health care, Insurance, Securities
trading system , Retail and Consumer goods,
Telecommunications, Government and
Transportation.
m The matrix organization is a combination of
functional departments which provide a stable
base for specialized activities and a permanent
location for staff and units that integrate various
activities of different functional departments on a
project team, product, programme, geographical or
systems basisµ (mullins 2007)
BUSINESS STRATEGIES
m TCS names its business divisions as Industry
Service Practice. TCS has it maximum revenue from
Banking Financial Services and Insurance Sector.

GENERIC BUSINESS STRATEGY:

m Low outlay of Global delivery 24X7 model.


m Delivery with the help of established release and
excellence framework-IQMS in time.
m A whole focus on customer retention and client
relationship in order to uphold the business revenue
which is 95.6%
m Distinguished in low end services in both capital and
price
m A solid protection from the money fluctuations with currency
prevarication.
m Owing to its tough knowledge management system and resource
m strength, TCS has been triumphant in attaining the cost leadership in
the Industry.
m In recent years TCS has been following a further resolute strategy
m 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.
m A full Focus on the centre of Excellence(CoE) to strengthen potential
m in order to build the state-of-art elucidation in particular
technologies
m 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
m 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
m Clayton M Christensen(HSB Professor, joined TCS in 2006)
m Dr. Ron Sommer (former chairman of the board of management
of Deuteshce
m telecom AG, joined TCS in 2006)
m Laura M cha (Member of Executive Council of the Hong Kong
special
m Administrative Region(SAR) and Non-Executive Chairman of
HSBC
m investment, Asia ltd)
m 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 centre's 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;
m 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.
m 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 centre's in Latin America like
Uruguay, Mexico and Brazil
m 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 analyzing the results of
marketing review. Internal strengths and
weakness are abridged as they
communicated to external opportunities and
threats. (Jobbers; 2007)
m It analysis the complete strategy of the
company based on policies and thebusiness
method which they follow. This pictures the
company·s advantages and disadvantages in
company·s perspective
The SWOT for TCS is as follows,
STRENGTH
m widespread universal reach
Strong economic presentation
Human management skills
Innovative lab system
The Fame of the founder

WEAKNESS
m Momentous publicity to financial
service markets.
m Deficient in level of consulting
operations.
OPPURTUNITIES
m Expansion in worldwide IT services
m Focus on SMB segment
m Expanding maneuvers in countries like
china
m Focus on high end business and consulting
THREATS
m The Hike in Employee costs
m Powerful competition
m From overseas firms like Accenture , IBM
etc.
m Merge in the end markets
Currency gratitude
Increase in competition from low wage
m Being TCS itself is an supplier, it do
not have problem with the suppliers,
the other four forces which are
problematic to TCS are the threat of
new entrants, the bargaining power
of customers, the threat of
substitutes and the spirited rivalry
between the existence.
m In the untimely days the software
exports, the software wholesale
market was overlooked by very few
massive like Accenture, EDS and
IBM, where the Indian concern were
outlined as small level companies in
result the TCS and other Indian
software companies competed
themselves in the lower end of the
business, whichresulted TCS and
other organizations to choose small
projects and tasks which aresimple
to do
m TCS also faced a customer market that was
conquered by the insurance companies and
huge banks. While TCS keenly hunted for
alliances with larger sellers as a
competitive strategy, TCS most successful
approach was to honestly loom clients and
admit the minor charges that its competitive
pose dictated.
m The entry of new companies have reduced
rapidly as the huge companies like TCS,
Infosys and Wipro have developed and
grown huge in their market share, size and
reliability with their customers. Though, the
companies struggle to decrease their
straight rivalry through demarcation of
manufactured goods, in every market there
has been enormous competitors
m TCS UK division and its subsidy is focusing on the
Insurance market in theBPO, the Diligenta·s deal with the
pearl conformed their future plans of entering intothe
Insurance Industry. TCS is planning to expand further in
the globally in order tocapture new markets like China,
Philippines, Asia-pacific, South America, Mexicoand
Eastern Europe. TCS has invested around INR 500 crore in
India in order todevelop its domestic infrastructure within
India. TCS has invested around approx 150billion in order
perform research on next generation technology and
wireless
m "We are strengthening our product line-up to position the
company for thefuture, (Mr.Ramadorai, CEO)µ. As the CEO
of TCS said TCS has invested anrespectable amount of
money in order to strengthen their product line-up
m TCS has to work seriously upon reducing the bargaining
power of customers.TCS can prevent price strategy in
mixing up with purchase decision. It means that TCS
should bring more than undifferentiated indoctrination by
moving up the cost sequence. Such approach might be
difficult in the software outsourcing business as the clients
have an in-depth domain enterprises and rights of
inclination to hold on to the work allocated under
considered consulting. The clients very well know that the
complete bargaining power lies in the strategic consulting;
outsourcing that may reduce their bargaining power. TCS
have to build up enough knowledge so as to construct
outsourcing these errands a convincing worth plan. Of
course, it is exactly in this empire that the multinational
outsourcing firms such as Accenture, IBM, and EDS are
the most vicious customers

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