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Tata Consultancy Services

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.

History

Tata Consultancy Services was established in the year 1968. It began as the "Tata Computer Centre", a division of the Tata Group, whose main business was to provide computer services to other group companies. However, the potential of computerization and computer services was realized early on, and an electrical engineer from the Tata Electric Companies, Fakir Chand Kohli, was brought in as the first General Manager. Soon after, the company was named Tata Consultancy Services.

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.

Offices and development centres

Indian branches

TCS has development centres and/or regional offices in the following Indian cities: Ahmedabad, Bangalore, Vadodara, Bhubaneswar, Chennai, Coimbatore, Delhi, Gandhinagar, Goa, Gurgaon, Hyderabad, Jamshedpur, Kochi, Kolkata, Lucknow, Mumbai,Noida, Pune, Siruseri, Thiruvananthapuram,Visakhapatnam .

Global units

Africa: South Africa

Asia (outside India): Bahrain, China, Hong Kong, Indonesia, Israel, Japan, Macau, Malaysia, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand, UAE

Australia: Australia

Europe: Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom

North America: Canada, Mexico, USA

South America: Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay

List of acquisitions

TCS has done a number of acquisitions in the past, both in India and abroad. The table below highlights the key acquisitions

Number Acquisition Date Company Business Country Value Headcount Remarks Reference
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.

TCS Innovation Labs

TCS has research and development labs spanning across 5 countries for research and development of new domain solutions. Most of the labs are located in India.

  • TCS Innovation Lab, Convergence: Works on Content Management Systems, content delivery systems, convergence engines, networks such as 3G, WiMax, WiMesh, IP Testing for Quality of Service, IMS, OSS/BSS systems, and others.
  • TCS Innovation Lab, Delhi: Works on emerging technologies such as Software Architectures, Software as a Service, natural language processing, text, data and process analytics, multimedia applications and graphics.
  • TCS Innovation Lab, Embedded Systems: Focuses on medical electronics, WiMAX, and WLAN technologies.
  • TCS Innovation Lab, Hyderabad: Focuses on computational methods in life sciences, meta-genomics, systems biology, e-security, smart card-based applications, digital media protection, nano-biotechnology, quantitative finance.
  • TCS Innovation Lab: Media and Entertainment: Located in Burbank, California, this lab works on digital media distribution, digital asset management, theatrical distribution systems, contracts and rights management systems, ERP, data warehousing and application maintenance outsourcing
  • TCS Innovation Lab, Mumbai: Focuses on speech and natural language processing, wireless systems and wireless applications.
  • TCS Innovation Lab, Insurance - Chennai: Focuses on applying latest and appropriate technology solutions and Innovating process models for Insurance Business.
  • TCS Innovation Lab, Chennai: Works on infrastructure innovation, green computing, Web 2.0 and next-generation user interfaces.
  • TCS Innovation Lab, Peterborough, England: Focuses on new-wave communications for the enterprise such as browser based Web 2.0 technologies, utility computing and RFID (chips, tags, labels, readers and middleware).
  • TCS Innovation Lab: TRDDC (Tata Research Development and Design Centre), Pune
  • TCS Innovation Lab: Performance Engineering, Mumbai: The Performance Engineering Innovation Lab was set up in August 2006 with the mission of creating assets to automate performance within TCS delivery, and deliver high performance technology components as part of TCS solutions and products. Some of the assets released by this innovation lab are DBProdem, Jensor , Wanem , Scrutinet.

Tata Research Development and Design Centre

The Tata Research Development and Design Centre, part of the TCS Innovation Labs network, was established in 1981 in Pune. It concerns itself with R&D in software engineering and process engineering.

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.

In addition, TRDDC is also involved in the areas of language processing, formal methods, and research on artificial intelligence and decision support.

In January 2007, TRDDC celebrated its silver jubilee at its headquarters in Pune. The Chief Guest was former president Dr. A. P. J. Abdul Kalam .

Expansion

The company continues to grow in multiple geographies such as Eastern Europe, Latin America and China (TATA Information Technology (Shanghai) Co. Ltd.), with a special focus on the North American and European markets.

Work for the Indian Government

TCS launched a mission-mode e-governance project, MCA-21, for the Ministry of Corporate Affairs, Government of India, and has created an automated solution for the National Rural Employment Guarantee scheme that reduces waste and corruption.

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.

Global presence

TCS has set up nearshore centres in North America, Europe and Asia-Pacific, regional development centres in Hungary, Uruguay and Brazil and a global development centre in China, in addition to India.

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.

The Company has entered into a joint venture agreement with the Intelenet Global Services Ltd. For the GM deal, TCS is tying up with EDS to bid for parts of the business.

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.

Layoffs

In 2008, due to growing concerns about a strengthening rupee and an impending recession, TCS cut performance-linked pay for its employees, and asked 500 of its employees to leave after poor performance appraisals.

Recently TCS has also put hold on all the promotions of it employees citing economic uncertainty as the main reason.

References

External links

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