1 – The Cutting Success

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CEO: S RAMADORAI

TCS is this year’s Olympian delight. Together for many years it grew faster
than the industry despite its expanding base, exhibiting sheer competitiveness and
ambition. And this is the moment when it stands tall at a revenue of Rs 1,083 crore,
representing 11.1 percent of the total Indian software industry. It is also a moment of
significance for the country because TCS’s feat suggests that the software and
services business has shot past the hardware systems business.

The main components of TCS’s strategy are growth,
human resource utilization, infrastructure creation, and quality. Against a growth
objective last year of 35 percent the company achieved 50 percent. This growth came in
from its global customers in finance, banking, insurance,
tcs2.jpg (11375 bytes)telecom, and manufacturing segments. Network Custody System,
a global custody product, Quartz, a wholesale banking product, and ISBS, an integrated
total banking solution, are some examples of service-intensive products that TCS has
installed the world over. Thus, such products that come out of reusing domain expertise
gained in earlier projects form a key component in TCS’s growth strategy.

Investment in training accounts for nearly 6 percent of
TCS’s annual revenue. Its training programs have become an industry standard in terms
of entry profiles for aspiring software professionals. The company has put in over 500
person years in its training offer.

S T R A T
E G Y
  • To continue seeking growth by serving large global and
    Indian customers through infrastructure creation, quality development and delivery
    processes, and efficient manpower utilization.
  • To leverage on domain knowledge reuse for delivering
    service-intensive products-based solutions.

T A C T I C S

  • Has started work on web-enablement of its products.
  • Has proven the software factory concept, especially for
    issue-based areas like Y2K and Euro.
  • Has identified the next wave of technologies like Java
    and Internet security and gained considerable experience in them.
  • Has constituted an aggressive plan for domestic market
    with focused marketing groups.

O B J E C T I V E S

  • Will maintain growth rate in the exports market.
  • Will grow at the market growth rate in the domestic
    market to seek 15-20 percent of overall business.
  • Will increase manpower productivity through skills
    enrichment programs.
  • ISO 9000 for all development centers.

P E R F O R M A N C E H I G H L I G H T S

  • Crossed the Rs 1,000-crore mark, grew by 50 percent.
  • Product sales brought in Rs 39.67 crore, nearly 85
    percent from the domestic market.
  • Total exports revenue at Rs 949.14 crore, domestic
    revenue Rs 94.82 crore.
  • Onsite-to-offshore ratio 57:43.

PRODUCTS AND SERVICES:
Packaged Software, Software Development, Consultancy, Multimedia, Training, Ecommerce
Solutions
* TECHNICAL
COLLABORATION
: Ernst & Young, HP, IBM, Lotus, Microsoft, Nortel, Tandem, Oracle,
Sun, Transarc, Netscape Corp., Singapore Airlines, University of Waterloo, University of
Maryland, University of Wisconsin, Indian Institute of Science
* AGENCY OPERATIONS: EDS Unigraphics,
Oracle, Sun
* START-UP YEAR:
1968
* EMPLOYEES: 10,305 * DEALER OUTLETS: 584 * QUALITY CERTIFICATION: ISO 9001 * ADDRESS: 11th Floor, Air-India
Building, Nariman Point, Mumbai 400021
* TEL: 2024827 * FAX: 2040711 * WEB SITE:
www.tcs.com

Infrastructure creation for software development
both for specific clients and specific technology areas continued to be the focus. Staffed
with around 800 engineers, the 70,000 sq. ft Y2K and Euro-currency solutions factory of
the company has around 350 MIPS of computing power and churns out up to two million lines
of code everyday. The solutions factory is the first of its kind in the world. A Java
Excellence Center committed to developing Java products and applications has been recently
opened. The center has been authorized by Keylabs Inc. to provide 100-percent Pure Java
certification. The Microsoft Excellence Center is focused on providing total solutions
including new development and porting to the Microsoft platform. A highlight of the
company is that it employs 140 Certified Quality Analysts (CQAs)—the largest in any
organization worldwide.

TCS is the largest Indian player in the domestic
software development market. The year saw TCS executing several key projects in the
country. The design and proof-of-concept of remote site data mirroring for disaster
recovery site for National Securities Depository Ltd was one of the significant turnkey
projects of the year. TCS also bagged a large management consulting project funded by
Kreditanstalt fur Wiederanfban (financing arm of the German Government) for Basic Health
Project for Maharashtra Government. It also won a Rs 200-crore seven-year contract for IT
outsourcing for Tata Teleservices against a global tender.

On the products front, TCS launched E.X. NGN, the 32-bit
Win95 and NT version of its accounting software, E.X. It also launched a new Y2K solutions
product, Y2kit/400 for the AS/400 platform, in the global market. The product earned the
All Star Award from IBM Corp. for AS/400 partners in development. Quartz, the wholesale
banking product for European banks, went live at Daiwa Bank, Switzerland.

The strategy for the global market in 1998-99 would
continue broadly in the same direction. Of special emphasis would be Internet-enabling of
products, large ERP consulting and implementation projects, and breaking new grounds in
emerging technology areas like ecommerce and datawarehousing. An Internet business unit
has already been set up at Delhi for web-enabling of products. With focus of most
organizations shifting from information dissemination to transaction-based applications
through the Web, TCS is consolidating its position in providing solutions for ecommerce by
entering the Net security arena.

TCS perceives the Indian market to be a major
opportunity in the coming year. The company aims to grow at the market growth rate by
penetrating wider markets and, possibly, smaller and more involved projects. In the larger
perspective, TCS is chalking out a plan to improve the technology deployment level in the
tcs3.jpg (21490 bytes)country. The Government, finance, telecom, and
insurance sectors would be the growth spots in the domestic market. The global custody
product would also be sold in the domestic market. Very focused marketing groups have been
created to address the domestic market. The objective is to measure and improve service
levels to retain existing customers.

That’s the story behind India’s largest force
in all IT. And, with an enormous appetite for growth and a burning ambition to match, TCS
has the mettle to continue to lead the country’s IT brigade.

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