Tata Consultancy Services: The High-Growth Behemoth

The bedrock of the earnings of Tata Sons and its pillar
of strength, Tata Consultancy Services has today become an institution by itself. Three decades of constant endeavor, crossing hurdles and milestones, and reaching out and spreading its tentacles across the globe, TCS has been the first software
and consultancy company to have proved the worth of Indian software professionals across the oceans. From the days of government-control to
post-liberalization when IT firms are springing up dime a dozen, TCS stood its ground without budging an inch. And it is not surprising that it has also been the only company that the market watchers have been keen to attract to the
bourses and has been eluding their reach. The company continues to be a division of Tata Sons, with no aspirations as of now to test its luck on the bourses. The top IT company and the top exporter, it has always kept up to its expectations and the industry’s by showing an excellent performance. 

Interestingly, unlike other IT companies, it has been a major player on the
domestic and the government front. And to add to it, it cornered 15% of the total exports registered by the Indian IT industry for the fiscal year 1998-99. A behemoth as far as employee strength is concerned, with close to 12,000 employees, TCS today has become one of the best training grounds for software professionals. It also bagged awards for exports. While General Electric called it the best commodity supplier, American Express awarded it for supplier excellence and Dayton Hudson called it the ‘best business partner’ for 1998. 

TCS invests 5% of its total revenue in research, and partnerships are its key to expansion. The company also plans to concentrate on products and related services, with the government, healthcare and utilities to be major thrust areas. In keeping with the trend, besides the financial services–the main contribution to its kitty–the company also entered into healthcare, telecom and internet areas. 

TCS is also a company that does not believe in acquiring companies
and growing. Its strategy is to build capabilities with people as its focus and be prepared for the emerging technologies with the right
people at the right place. It also plans to become an end-to-end consultant,
be involved in strategizing, designing and implementing solutions. 

And the vision is to be Asia’s largest consulting company and
among the global top 10. No wonder TCS has made forays into emerging technology areas and has spread its reach far and
wide.