Tata Consultancy Services Limited (TCS) is an Indian software services and consulting company. It is one of India's oldest, largest and most prestigious providers of information technology and business process outsourcing services. As of 2007, it is Asia's largest information technology firm and has the largest number of employees among Indian IT companies with strength of over 116,308 employees in 47 countries. The company generated consolidated revenues of US $5.7 billion for fiscal year ended 31 March 2008 and is listed on the National Stock Exchange and Bombay Stock Exchange in India.
TCS is part of one of Asia's largest conglomerates, the Tata Group, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering and materials.
TCS's first software export project was undertaken in 1974 when it converted the Hospital Information System from Burroughs Medium Systems COBOL to Burroughs Small Systems COBOL. This project was carried out entirely in TCS Mumbai on the ICL 1903 Computer. In 1980, TCS and a sister Tata firm accounted for 63% of the Indian software industry exports, $4 million shared by 21 firms. In 1984, TCS set up an office in the Santacruz Electronics Export Processing Zone (SEEPZ) – Mumbai.
The early 1990s saw a tremendous surge in TCS's business, which also resulted in a massive recruitment drive by the company. In early and mid-1990s, TCS re-invented itself to become a software products company. In the late 1990s, to accelerate its revenue growth, TCS decided to employ a three-pronged strategy – developing new products with high revenue earning potential, tapping domestic and other fast growing markets and focusing on inorganic growth through mergers & acquisitions. In late 1998, the company decided to concentrate on new revenue opportunities including Y2K and Euro conversion. E-business was a major area of focus in the late 1990s.
In 2004, TCS became a publicly listed company.
TCS has done a number of acquisitions in the past, both in India and abroad. The table below highlights the key acquisitions
|1||October 8, 2008||Citigroup Global||Business Process Outsourcing||US$ 505 mn||12472||Catapulted TCS to number 2 BPO player in India after Genpact|
|2||November, 2006||TKS-Teknosoft||Banking Product||US$ 80.4||115||Expand product portfolio by getting rights to Quartz and ownership of Alpha and e-portfolio, Presence in Switzerland and France|
|3||November, 2005||Comicrom||Banking BPO||US$ 23.7 mn||1257||Entry into Latin America; Access to payment processing platform|
|4||February, 2006||Tata Infotech||IT Services||-||-||-|
|5||October, 2005||FNS||Core Banking Product||US$ 26 mn||190||To fill the core banking solution gap in its BFSI vertical; Got access to 116 customers in 35 countries; FNS was an existing partner for TCS|
|6||October, 2005||Pearl Group||Insurance||US$ 94.7 mn||950||Acquired life and pension outsourcing business from Pearl Group|
|7||November 2006||TCS Management||IT Services||US$ 13.0 mn||35||Access to Australian clients|
|8||May 2004||Phoenix Global Solutions||BPO||US$ 13 mn||350||Acquire expertise in insurance|
|9||May 2005||Swedish Indian IT Resources AB (SITAR)||IT Services||US$ 4.8 mn||-||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.|
|10||May 2004||Aviation Software Development Consultancy India (ASDC)||BPO||-||180||ASDC was a Singapore Airlines-TCS JV; Got Singapore Airlines as a major client|
|11||January 2004||Airline Financial Support Services India (AFS)||BPO||US$ 5.1 mn||316||BPO expertise in Airline and Hospitality sector|
|12||October 2001||CMC||IT Services||US$33.8m (51%)||3100||Access to domestic capability|
|13||October 2008||Citigroup Global Services||Financial services||US$5.5m||12000||The acquisition broadens TCS’s portfolio of end-to-end IT and BPO services in the global Banking and Financial Services (BFS) sector.|
Research and development work at TRDDC is focused in different groups, each specializing in a key area of work. Projects of an interdisciplinary nature are also carried out. TRDDC provides solutions within TCS and for major clients. There is also an ongoing effort to integrate its products into the Eclipse Integration Framework.
The process engineering group of TRDDC focuses on modeling and optimization of industrial unit operations for steel and automotive sector.
TCS is a part of National Skills Registry (NSR), a centralized database of all employees of the IT services and BPO companies in India. The objective of NSR is to improve recruitment practices in IT and BPO industry, which will in turn help in maintaining India's global competitive advantage.
TCS has designed a new software to help the National Literacy Mission in its goal of eradicating illiteracy in India. The software is geared towards letting illiterate adults learn to read a language by words instead of alphabets and turn them into functional literates who can at least read simple newspaper headlines, signboards, directions etc.
In 2006, Tata acquired Chile's Comicrom S.A., Australia's Financial Network Services (Holdings) Pty Ltd, (FNS) and Sweden's Indian IT Resources AB (SITAR) through subsidiaries.
The Company has set up two subsidiaries, viz. TCS FNS Pty Limited in Australia and Diligenta Limited in the UK. It has also set up other subsidiaries such as Portugal Unipessoal Limitada in Portugal, Tata Consultancy Services Luxembourg S.A. in Luxembourg and Tata Consultancy Service Chile Limited in Chile. The Company has 49 subsidiaries as on March 31, 2006.
In March 2006, the Company, through its subsidiary Diligenta Limited acquired, on a going concern basis certain businesses of Pearl Group Services Limited. The acquisition included specified insurance contracts and claim administration business and assets including goodwill and know-how.
In February, 2007, TCS kicked off a joint venture in China with Microsoft and three Chinese entities - TATA Information Technology (Shanghai) Co. Ltd..
Tata Consultancy Services has a branch in Japan, which is located on several floors in the Queen's Tower A high-rise building in Minatomirai (Yokohama). This location is the only office in Japan, and does embedded research, as well as ERP and other consulting.
On October 8, 2008, Tata Consultancy Services (TCS), a leading IT services, business solutions and outsourcing firm, and Citigroup Inc., a leading global financial services company, today announced that they have reached an agreement for TCS to acquire all of Citi's interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for all cash consideration of approximately $505 million, subject to closing adjustments. In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of US$2.5 billion over a period of 9.5 years. The agreement builds upon the existing relationship between Citi and TCS whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi.
Recently TCS has also put hold on all the promotions of it employees citing economic uncertainty as the main reason.