TCS Services Supremo

DQI Bureau
New Update



bedrock of earnings for Tata Sons, Tata Consultancy Services clocked a revenue

of Rs 2,034 crore in the last fiscal, a growth of 23% over the previous year’s

Rs 1,652 crore. But there has been a definite slowdown in the company’s growth

rate when compared to the previous year’s 55%. It continued to be the largest

software exporting house in the country, with Rs 1,820 crore of its total

revenue coming from exports.

TCS has nearly doubled its turnover

over the last two years. And the target for 2000-01 is Rs 3,000 crore.

Strategies envisioned by TCS founder

FC Kohli seem to have paid off. He recently stepped down from TCS’ day-to-day

operations after three decades.

The company played a dominant role in

the domestic arena as well. Eleven percent of its total revenues, amounting Rs

214 crore, accrued out of the domestic business.



  • To increase its ebusiness revenues from 10% to

    over 25% in 2000-01
  • To achieve SEI-CMM Level 5 certification for

    all its development centers
  • To achieve the Rs 3,000 crore mark in the

    current year.


  • Crossed Rs 2,000 crore-mark in total turnover

    to touch Rs 2,034 crore
  • Exports grew by around 20% to Rs 1,820 crore
  • Continued to maintain number one position as

    the country’s largest software export company
  • Seven centers assessed at SEI-CMM Level 5
  • More than 5,000 consultants working at Level



services remained TCS’ strength, garnering 98% of its total revenue, while the

rest came from packaged software. A large base, along with the transition from

the traditional applications area to ecommerce, has definitely made a dent on

its top line. But it is the ecommerce wave that TCS hopes to cash upon to

bolster its top as well as bottom lines. Sixty-five percent of its software

exports revenue came from onsite work, with more and more ecommerce clients

being added to its base. Onsite development is also one of the reasons for the

drop in margins. But given that ecommerce projects will be earning good returns

in the long run, this should not be a cause of worry. The US continued to be the

prime destination for the company’s exports, contributing 63% of its earnings.

Europe sent in 27% while 10% came from the rest of the world.

  • START-UP YEAR: 1968
  • PRODUCTS AND SERVICES: Software consultancy, systems integration,

    custom software development, packaged software
  • COLLABORATIONS: Ernst & Young, HP, IBM, Lotus, Microsoft,

    Netscape, Sun, Tandem, Singapore Airlines, Swiss Air, e-Mecklai,

    Unigraphics, Niku Corp
  • AGENCY OPERATIONS: Lotus, IBM, PC Docs, Sun, Tandem
  • EBUSINESS ALLIANCES: Siebel, Clarify, Sales Logix, Verisign,

    Cybercash, Ariba
  • LEGAL STATUS: A division of Tata Sons
  • EMPLOYEES: 13,493
  • ADDRESS: Air India Building

    11th Floor, Nariman Point,

    Mumbai 400 021
  • TEL: 202 4827
  • FAX: 204 9711



TCS spent $25 million on enhancing

hardware and software infrastructure. In India, it acquired over 1.5 lakh Sq ft

of office space for development activities. Abroad, it plans to open overseas

development centers (ODCs) in the US as well as in Europe.

TCS started R&D centers in the US

on emerging software and technologies, including Linux. It embarked upon several

business and R&D relationships with global firms like General Electric for

providing high-end engineering analysis to technology centric solutions for the

railway industry, and for modeling and development of control systems. It also

embarked upon tie-ups with healthcare portals and insurance companies, and did

an equity participation and technology support in e-Mecklai, a

business-to-business portal that provides decision support tools to companies

carrying risk in non-liquid markets.

TCS also undertook economic value added

(EVA) initiatives. Seven of TCS centers were assessed at SEI-CMM Level 5 in the

last fiscal, with over 5,000 consultants working at Level 5. With changing

business models, TCS also tried to make people aware of its work and create

visibility through a branding exercise.

This fiscal will see the company externalizing the

intellectual assets, get into new areas of software engineering, and bring out

products in the Linux space. It will continue to play its role in the domestic

market and with the growth of IT-enabled services, even get into providing the

software, automation technology and domain expertise. DQ