Tata Consultancy Services

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Tata Consultancy Services Limited
Type Public
Traded as BSE: 532540
NSE: TCS
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Information technology
Founded 1968
Founder(s) J.R.D Tata
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Natarajan Chandrasekaran
(CEO & Managing Director)
Services IT services
Outsourcing services
IT consulting
Revenue Increase US$ 11.57 billion (FY 2012-13)[1]
Operating income Increase US$ 03.12 billion (FY 2012-13)[1]
Profit Increase US$ 02.59 billion (FY 2012-13)[1]
Total assets Increase US$ 9.58 billion (31-Mar-2013)[1]
Total equity Increase US$ 7.66 billion (31-Mar-2013)[1]
Employees 285,250 (September 2013)[2][3]
Parent Tata Group
Subsidiaries CMC Limited, TCS China, TRDDC, Computational Research Laboratories, TCS e-Serve Ltd.
Website www.tcs.com

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services, outsourcing and consulting company headquartered in Mumbai, Maharashtra.[4][5] TCS operates in 46 countries and has 199 branches across the world.[3] It is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and the National Stock Exchange of India. TCS is the largest Indian company by market capitalization[6][7] and is the largest India-based IT services company by 2013 revenues.[8][9] TCS is ranked 40th overall in the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT services company and the top Indian company.[10]

History

1968 to 2000

Tata Consultancy Services Ltd (TCS) was founded in 1968 by J.R.D Tata as a division of Tata Sons Limited.[11] 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,[12] 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.[13]

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.[14] TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired.[15]

In 1981, TCS established India's first dedicated software research and development centre, the Tata Research Development and Design Centre (TRDDC) in Pune.[16]

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.[17]

2000 to present

By 2008, TCS's e-business activities were generating over US$500 million in annual revenues.[18]

On 25 August 2004, TCS became a publicly listed company.[19]

In 2005, TCS became the first India-based IT services company to enter the bioinformatics market.[20]

In 2006, TCS designed an ERP system for the Indian Railway Catering and Tourism Corporation.[21]

In 2008, TCS undertook an internal restructuring exercise which aimed to increase the company's agility.[22]

TCS entered the small and medium enterprises market for the first time in 2011, with cloud-based offerings.[23] On the last trading day of 2011, TCS overtook RIL to achieve the highest market capitalisation of any India-based company.[24]

In the 2011/12 fiscal year, TCS achieved annual revenues of over US$10 billion for the first time.[25]

In May 2013, TCS was awarded a six-year contract worth over INR 1100 crores to provide services to the Indian Department of Posts.[26]

Acquisitions

Name Acquisition date Activities Country of HQ Price Employees
(at acquisition)		 Notes Reference
CMC Limited October 2001 IT Services India $ 33.9 m 3,100 Access to domestic capability; continues to be a separately run company. [27][28][29]
Airline Financial Support Services India (AFS) January 2004 BPO India $ 5.1 m 400 BPO expertise in Airline and Hospitality sector [30][31]
Aviation Software Development Consultancy India (ASDC) Mar 2004 IT Services India $ 3.1 m 180 ASDC was a Singapore Airlines-TCS JV; Acquired Singapore Airlines as a major client [32][33]
Phoenix Global Solutions May 2004 BPO India $ 13 m 400 Acquire expertise in insurance-domain consulting [34][35]
Swedish Indian IT Resources AB (SITAR) May 2005 IT Services Sweden $ 4.8 m n/a Acquire blue-chip European customers like Ericsson, IKEA, Vattenfall and Hutchison; SITAR was TCS’ exclusive partner in Sweden and a non-exclusive partner in Norway. [36][37]
Pearl Group October 2005 Insurance United Kingdom $ 94.7 m 950 Acquired life and pension outsourcing business from Pearl Group; Domain knowledge of life and pension underwriting business. [38][39]
Financial Network Services (FNS) October 2005 Core Banking Product Australia $ 26 m 190 TCS acquired core banking solution product (BANCS) and access to 116 customers in 35 countries; FNS was an existing partner for TCS. [40][41]
Comicrom November 2005 Banking BPO Chile $ 23 m 1,257 Entry into Latin America; Access to payment processing platform. [42][43]
Tata Infotech February 2006 IT Services India $ 259.2 m 3,600 The merger of Tata Infotech added 15 new Fortune 500 clients and enhanced TCS’ systems integration and infrastructure service capabilities. [44][45][46]
TCS Management November 2006 IT Services Australia $ 13 m 35 Access to Australian clients [47][48]
TKS-Teknosoft November 2006 Banking Product Switzerland $ 80.4 m 115 Expand product portfolio by acquiring rights to Quartz and ownership of Alpha and e-portfolio, enhanced presence in Switzerland and France [49]
Citigroup Global Services Limited December 2008 Captive BPO of Citigroup Inc. India $ 512 m 12,472 TCS acquired key Banking and Financial Services (BFS) domain knowledge. [50][51]
Supervalu Services India 15 September 2010 Captive IT/BPO unit of Supervalu Inc. in India India $ 100 m 600 TCS had a deal with Supervalu to have their Software Outsourcing to TCS and acquired Supervalu India. [52]
Computational Research Laboratories August 2012 High Performance Computing India $ 34 m 80 Acquire expertise in High Performance Computing (HPC) applications and Cloud services [53][54]
Alti SA April 2013 IT Services France $ 97.5 m 1,200 Access to blue-chip French and European clients in banking, luxury, manufacturing and utilities sectors [55]

Products and services

TCS and its 58 subsidiaries[56] 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.[57] Its established software products are TCS BaNCS and TCS MasterCraft.[58]

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%).[57]

Operations

As of 31 March 2013, TCS had 199 offices across 44 countries and 124 delivery centers in 21 countries.[3] At the same date TCS had a total of 58 subsidiary companies.[57]

Locations

TCS has operations in the following locations:

India: Ahmedabad, Bangalore, Baroda, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Delhi, Gandhinagar, Goa, Gurgaon, Guwahati, Hyderabad, Indore, Jamshedpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, Noida, Pune and Trivandrum[59][60]

Africa: South Africa, Morocco[61]

Asia (excluding India): Bahrain, China, Israel, Dubai, Hong kong, Indonesia, Japan, Malaysia, Philippines, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand[62] [63] [64]

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.[65]

Tata Consultancy Services, Hyderabad 
The Tata Consultancy Services campus in Lucknow 

TCS BPS

TCS BPS is the second-largest India-based IT outsourcing company (after Genpact).[66] The BPO division had revenues of US$ 1.44 billion in the FY 2012-13 which was 12.5% of the total revenue of TCS.[67] TCS BPO has more than 45,000 employees which serve over 225 customers across 11 countries.[68] The rate of attrition in BPO division during the financial year 2012-13 was 19.5%.[69]
Tata Consultancy Services has also opened a business process outsourcing facility in the Philippines.[70]

Tata Research Development and Design Centre

Main article: Tata Research Development and Design Centre

TCS established the first software research center in India, the Tata Research Development and Design Centre, in Pune, India in 1981. TRDDC undertakes research in Software engineering, Process engineering and systems research. Researchers at TRDDC also developed MasterCraft (now a suite of digitization and optimization tools)[71] a Model Driven Development software that can automatically create code based on a model of a software, and rewrite the code based on the user's needs.[72] Research at TRDDC has also resulted in the development of Sujal, a low-cost water purifier that can be manufactured using locally available resources. TCS deployed thousands of these filters in the Indian Ocean Tsunami disaster of 2004 as part of its relief activities.[73] This product has been marketed in India as Tata swach, a low cost water purifier.[74]

Innovation Labs

In 2007, TCS launched its co-innovation network, a network of innovation labs, start up alliances, university research departments, and venture capitalists.[75][76] In addition, TCS has 19 innovation labs based in three countries.[77] TCS' partners include Collabnet, Cassatt, academic institutions such as IITs, Stanford, MIT and venture capitalists like Sequoia and Kleiner Perkins.[78]

Awards

  • TCS ranked #1 for customer satisfaction in the UK. [79]
  • TCS was awarded the Business Standard's Company of the Year award for 2012.[80]
  • In 2012, the company won Gold Shield award for excellence in financial reporting from the Institute of Chartered Accountants of India (ICAI).[67][81]
  • The company won 'Recruiting and Staffing Industry Leader of the Year' and ‘Best Employer Brand’ awards at the World HRD Congress' annual meet in 2012.[67]

Sponsorships

TCS is the title sponsor for Amsterdam Marathon, Bangalore 10k, New York City Marathon [82] and one of the sponsors of Berlin Marathon, Chicago Marathon, Boston Marathon and Mumbai Marathon.[83] TCS is a sponsor of Indian Premier League team Rajasthan Royals since 2009.[84] In addition, TCS provides Rajasthan Royals with technology to help in analysis of player performance, simulation and use of RFID tags for tracking the players’ fitness levels and for security purposes in the stadiums.[85][86] TCS sponsors an annual IT quiz for high school students called TCS IT Wiz.[87]

Controversies

Class action lawsuit

On 14 February 2006, US law firm Lieff Cabraser Heimann & Bernstein, LLP filed a nationwide class action lawsuit against Tata.[88] In April 2012, a US District Judge in Oakland, California approved action on the lawsuit on behalf of all non-US citizens employed by TCS within the state of California from 14 February 2002 to 30 June 2005. The workers claimed that they were forced to sign over their federal and state tax refunds to their employer, as well as stating their Indian salaries were wrongfully deducted from their US pay.[89] On February 22, 2013, the Company entered into an agreement to settle for a sum of INR 16,163 lakhs (USD 29.75 million), this class action suit filed in a United States of America Court relating to payment to employees on deputation. The Court has granted preliminary approval to the settlement agreement.[57]

Charleston County, S.C, sued Tata Consultancy Services for delivering a botched software. TCS won the contract to create an online tax system (digiTax) for a $1.2 million. The system was supposed to go live in July, 2004 but was plagued by several delays. Tata developed the software at its offshore development center in Chennai, India. The software was rejected by Charleston County during user acceptance testing where it failed to meet even the basic requirements. County sued Tata and it agreed to pay back $1 million in out of court settlement. County finally bought out of box solution. [90]

Hiring in Canada

In May, 2013 the Canadian Broadcasting Corporation, in its extensive coverage of the hiring of temporary foreign workers in Canada and the unemployment issues faced by Canadians, reported that TCS rarely hires skilled experienced Canadians while advertising open positions in Canada. TCS responded that the company hired more than 125 Canadian workers in 2013. [91]

See also


References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 "Annual Report 2012-13 US GAAP/IFRS". TCS. 17 April 2013. Retrieved 3 September 2013. 
  2. ↑ "TCS adds 7,664 employees in Q2 2013". 
  3. ↑ 3.0 3.1 3.2 "TCS Investor FAQs". TCS. 26 July 2013. Retrieved 3 September 2013. 
  4. ↑ "Tata Consultancy Services". Forbes. 29 August 2013. Retrieved 3 September 2013. 
  5. ↑ "Tata Consultancy Services Ltd (TCS.NS)". Reuters. Retrieved 3 September 2013. 
  6. ↑ "TCS market value crosses Rs 4 lakh crore - stock at all-time high". Times of India. 2 September 2013. 
  7. ↑ "TCS market cap crosses Rs. 4 lakh crore". NDTV. 2 September 2013. Retrieved 3 September 2013. 
  8. ↑ "TCS, Infosys revenue gap triples in last four fiscals". Indian Express. 18 April 2013. Retrieved 6 September 2013. 
  9. ↑ "Cognizant pips Infosys as 2nd largest Indian IT firm: Gartner". NDTV. 28 May 2013. Retrieved 6 September 2013. 
  10. ↑ http://www.forbes.com/companies/tata-consultancy-services/.  Missing or empty |title= (help)
  11. ↑ "Corporate Facts". TCS. Retrieved 3 September 2013. 
  12. ↑ "Tata Consultancy Services Limited: The Pioneer in the Indian IT Industry". Case Study. ICMR. 1 January 1990. Retrieved 8 September 2013. 
  13. ↑ Cognizant rising by Chennai beach
  14. ↑ "Indian software keeps Swiss securities safe". Swissinfo.com. 14 January 2002. 
  15. ↑ "TCS acquires TKS Teknosoft". The Financial Express. 11 January 2006. 
  16. ↑ Kanavi, Shivanand (7–20 June 2004). "Megasoft". Business India: 46–54. 
  17. ↑ "IT Man of the Year: Standing Tall". Cover Story. Dataquest India. 22 December 2004. 
  18. ↑ Kanavi, Shivanand (7–20 June 2004). "Megasoft". Business India: 52 
  19. ↑ "Star Performer Goes Public". Editorial (Chennai, India: The Hindu). 14 June 2004. 
  20. ↑ "TCS launches the country’s first bioinformatics product". The Indian Express. 8 February 2004. 
  21. ↑ "ICT helps IRCTC book 3.5 lakh e-Tickets in a day". E-GovOnline.net. 11 July 2011. 
  22. ↑ "Eye on future, TCS in revamp mode". Hindustan Times. 12 February 2008. 
  23. ↑ "TCS targets SME market with cloud computing". Computer Weekly. 15 February 2011. fdaf
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  25. ↑ "TCS beats $10-bn revenue mark in FY12". Business Standard. 24 Apr 2012. Retrieved 3 September 2013. 
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  35. ↑ "TCS acquires Phoenix Global". Tata Group. 11 May 2004. Retrieved 7 September 2013. 
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  41. ↑ "TCS acquires Australian core banking solutions co". Economic Times. 21 October 2005. Retrieved 7 September 2013. 
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  43. ↑ "TCS acquires leading BPO firm in Chile". Tata Group. 8 November 2005. Retrieved 7 September 2013. 
  44. ↑ "Tata Infotech to merge with TCS". Silicon India. 18 July 2005. 
  45. ↑ "Tata Infotech to merge with TCS". Tata Group. 16 July 2005. Retrieved 7 September 2013. 
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  48. ↑ "TCS acquires Australian consultancy firm". Economic Times. 8 November 2006. Retrieved 7 September 2013. 
  49. ↑ "TCS acquires Swiss firm TKS-Teknosoft". Financial Express. 1 November 2006. Retrieved 7 September 2013. 
  50. ↑ "Tata Consultancy Services to Acquire Citigroup Global Services". Bloomberg.com. 8 October 2008. Retrieved 8 September 2013. 
  51. ↑ "TCS takes a lead, but deal raises a few concerns". Economic Times. 9 October 2008. Retrieved 8 September 2013. 
  52. ↑ "TCS buys captive unit of SuperValu". Times of India. 16 September 2010. Retrieved 8 September 2013. 
  53. ↑ "TCS to buy tech startup 'Computational Research Labs' for $34 million". Economic Times. 16 Aug 2012. Retrieved 8 September 2013. 
  54. ↑ "TCS buys high performance computing start-up for Rs 188 cr". The Hindu. 16 August 2012. Retrieved 8 September 2013. 
  55. ↑ "TCS to acquire IT services firm ALTI for € 75 million to help drive long-term growth in France". 9 April 2013. Retrieved 7 September 2013. 
  56. ↑ Subsidiaries. TCS (2013-03-31). Retrieved on 2013-12-06.
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  61. ↑ "TCS plans Morocco foray with 500-strong unit". Express Online. 12 October 2006. 
  62. ↑ "TCS Worldwide: Philippines". Tcs.com. Retrieved 13 November 2011. 
  63. ↑ "China Joint Venture with Tata Consultancy Services". China Economic Review. 18 September 2007. 
  64. ↑ "TCS Worldwide: United Arab Emirates (UAE)". Tcs.com. Retrieved 13 November 2011. 
  65. ↑ "TCS bets on growing economy of Peru". Times of India. 25 July 2010. 
  66. ↑ "Top 15 BPO companies". NASSCOM. Retrieved 6 September 2013. 
  67. ↑ 67.0 67.1 67.2 "Press Release Indian GAAP Q4 2012-13". TCS. 17 April 2013. Retrieved 3 September 2013. 
  68. ↑ "TCS Named as a Leader in Life Science Drug Safety Services by Leading Industry Research Firm". Yahoo! Finance. 28 February 2013. Retrieved 3 September 2013. 
  69. ↑ "Consolidated Historical Financials". TCS. Retrieved 3 September 2013. 
  70. ↑ "India's TCS opens BPO shop in Manila, Philippines – Jobs & Hire". Ibtimes.com. 3 December 2010. Retrieved 13 November 2011. 
  71. ↑ "TCS Mastercraft Suite of Products". Tata Consultancy Services. 1 October 2012. 
  72. ↑ "When Outsourcing Loses Human Element". International Herald Tribune. 27 May 2005. 
  73. ↑ "Improving Our World – IEEE Annual Report(page 4)". IEEE. 2005. 
  74. ↑ "Tata launches ‘Swach’ water filters". Deccanherald.com. Retrieved 12 August 2010. 
  75. ↑ "TCS launches its Co-Innovation Network". Financialexpress.com. 18 January 2007. Retrieved 16 July 2010. 
  76. ↑ "The TCS Co-Innovation Network". TCS. Retrieved 6 September 2013. 
  77. ↑ "Innovation Labs". TCS. Retrieved 16 July 2010. 
  78. ↑ "Co-Innovation Network". TCS. Retrieved 26 July 2010. 
  79. ↑ http://www.tcs.com/news_events/press_releases/Pages/TCS-number-1-customer-satisfaction-UK.aspx.  Missing or empty |title= (help)
  80. ↑ "Business Standard Awards: Toasting corporate excellence". Business Standard. 24 March 2013. Retrieved 3 September 2013. 
  81. ↑ "Important Activities undertaken during the last year". ICAI. Retrieved 3 September 2013. 
  82. ↑ TCS title sponsor for New York Road Runners. Business Standard (2013-10-03). Retrieved on 2013-12-06.
  83. ↑ "About TCS - Corporate Facts - Sponsorships". TCS. Retrieved 6 September 2013. 
  84. ↑ TCS ties up with Rajasthan Royals
  85. ↑ TCS is Rajasthan Royals’ tech partner
  86. ↑ Tata Consultancy Services enters the Indian Premier League
  87. ↑ TCS IT Wiz
  88. ↑ Vedachalam v. Tata Consultancy Services, Ltd.
  89. ↑ "TCS faces class action lawsuit in US". MSN News. 4 April 2012. Retrieved 20 February 2013. 
  90. ↑ http://nl.newsbank.com/nl-search/we/Archives?p_action=doc&p_docid=11F320ACB663DBD0&p_docnum=1
  91. ↑ Posted: May 20, 2013 2:05 AM PT (2013-05-20). "Canadian on EI shut out amid foreign worker influx - British Columbia - CBC News". Cbc.ca. Retrieved 2013-06-10. 

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