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In early the Indian IT outsourcing industry grew rapidly due to the [[Y2K]] bug and the launch of a unified European currency, Euro. Tata Consultancy Services created the [[factory model]] for Y2K conversion and developed [[software tools]] which automated the conversion process and enabled third-party developer and client implementation.<ref>{{cite web |url= http://dqindia.ciol.com/content/top_stories/2004/104122201.asp |title=IT Man of the Year: Standing Tall|work=Cover Story |publisher=Dataquest India|date= 22 December 2004}}</ref>
In early the Indian IT outsourcing industry grew rapidly due to the [[Y2K]] bug and the launch of a unified European currency, Euro. Tata Consultancy Services created the [[factory model]] for Y2K conversion and developed [[software tools]] which automated the conversion process and enabled third-party developer and client implementation.<ref>{{cite web |url= http://dqindia.ciol.com/content/top_stories/2004/104122201.asp |title=IT Man of the Year: Standing Tall|work=Cover Story |publisher=Dataquest India|date= 22 December 2004}}</ref>
Though Indians are more intelligent than these mnc companies think. The mnc companies thinks that they will give works to indian people for less labour charge but indians don't do a work for the whole day so we rock.


===2000 to present===
===2000 to present===

Revision as of 11:16, 28 January 2016

Tata Consultancy Service
Company typePublic
BSE: 532540
NSE: TCS
BSE SENSEX Constituent
CNX Nifty Constituent
IndustryIT services, IT consulting
Founded1968
FounderJ.R.D Tata
HeadquartersMumbai, Maharashtra, India
Area served
Worldwide
Key people
N Chandrasekaran[1]
(CEO & MD)
ServicesIT, business consulting and outsourcing services
RevenueIncrease US$ 15.5 billion (2015)[2]
Increase US$ 3.7 billion (2015)[2]
Increase US$ 3.5 billion (2015)[2]
Total assetsIncrease US$ 54.58 billion (2015)[2]
Total equityIncrease US$ 84.35 billion (2015)[2]
Number of employees
335,620 (August 2015)[3]
ParentTata Group
SubsidiariesCMC Limited, TCS China, TRDDC, Computational Research Laboratories
Websitewww.tcs.com

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) service, consulting and business solutions company headquartered in Mumbai, Maharashtra.[4][5] It is a subsidiary of the Tata Group and operates in 46 countries.[6] TCS is one of the largest Indian companies by market capitalization ($80 billion).[7][8] TCS is now placed among the ‘Big 4’ most valuable IT services brands worldwide.[9] In 2015, TCS is ranked 64th overall in the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT services company and the first Indian company.[10] It is the world's 10th largest IT services provider, measured by the revenues.[11]

History

1968 to 2000

Tata Consultancy Services Limited was founded in 1968 by a division of Tata Sons Limited.[12] Its early contracts included punched card services to sister company TISCO (now Tata Steel), working on an Inter-Branch Reconciliation System for the Central Bank of India,[13] and providing bureau services to Unit Trust of India.

In 1975, TCS conducted its first campus interviews, held at IISc, Bangalore and Mumbai. The recruits comprised 12 Indian Institutes of Technology graduates and three IISc graduates, who became the first TCS employees to enter a formal graduate trainee programme.[14]

In 1979, TCS delivered an electronic depository and trading system called SECOM for the Swiss company SIS SegaInterSettle (deutsch). TCS followed this up with System X for the Canadian Depository System and automating the Johannesburg Stock Exchange.[15] TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired.[16]

In 1981, TCS established India's first dedicated software research and development centre, the Tata Research Development and Design Centre (TRDDC) in Pune.[17]

In 1985, TCS established India's first client-dedicated offshore development centre, set up for clients Tandem. TCS later (1993) partnered with Canada-based software factory Integrity Software Corp, which TCS later acquired.

In early the Indian IT outsourcing industry grew rapidly due to the Y2K bug and the launch of a unified European currency, Euro. Tata Consultancy Services created the factory model for Y2K conversion and developed software tools which automated the conversion process and enabled third-party developer and client implementation.[18] Though Indians are more intelligent than these mnc companies think. The mnc companies thinks that they will give works to indian people for less labour charge but indians don't do a work for the whole day so we rock.

2000 to present

On 25 August 2004, TCS became a publicly listed company.[19]

In 2005, TCS became the first India-based IT services company to enter the bioinformatics market.[20]

In 2006, TCS designed an ERP system for the Indian Railway Catering and Tourism Corporation.[21]

In 2008, TCS's e-business activities were generating over US$500 million in annual revenues.[22]

In 2008, TCS undertook an internal restructuring exercise which aimed to increase the company's ability.[23]

TCS entered the small and medium enterprises market for the first time in 2011, with cloud-based offerings.[24] On the last trading day of 2011, TCS overtook RIL to achieve the highest market capitalisation of any India-based company.[25]

In the 2011/12 fiscal year, TCS achieved annual revenues of over US$10 billion for the first time.[26]

In May 2013, TCS was awarded a six-year contract worth over ₹ 1100 crores to provide services to the Indian Department of Posts.[27]

In 2013, TCS moved from the 13th position to 10th position in the League of top 10 global IT services companies[28]

In July 2014, TCS became the first Indian company to cross the Rs 5 lakh crore mark in market capitalization.[29][30]

In Jan 2015, TCS ends RIL's 23-year run as most profitable firm[31]

Acquisitions

Name Acquisition date Activities Country of HQ Price Employees
(at acquisition) 		Notes Reference
CMC Limited 2001 October IT Services  IND $33.9 m 3,100 Gets Embedded Expertise & good Domestic customer reach. CMC Amalgamated with TCS on April 28, 2015.[1] [32][33][34]
Airline Financial Support Services India (AFS) 2004 January BPO  IND $5.1 m 400 BPO expertise in Airline and Hospitality sector [35][36]
Aviation Software Development Consultancy India (ASDC) 2004 March IT Services  IND $3.1 m 180
Phoenix Global Solutions 2004 May Business Process Outsourcing  IND $13 m 400 Acquire expertise in insurance-domain consulting [37][38]
Swedish Indian IT Resources AB (SITAR) 2005 May IT Services  SWE $4.8 m n/a 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. [39][40]
Pearl Group 2005 October Insurance  UK $94.7 m 950 Acquired life and pension outsourcing business from Pearl Group; Domain knowledge of life and pension underwriting business. [41][42]
Financial Network Services (FNS) 2005 October Core Banking Product  AU $26 m 190 TCS acquired core banking solution product (BANCS) and access to 116 customers in 35 countries; FNS was an existing partner for TCS. [43][44]
Comicrom 2005 November Banking BPO  CHL $23 m 1,257 Entry into Latin America; Access to payment processing platform. [45][46]
Tata Infotech 2006 February IT Services  IND $259.2 m 3,600 The merger of Tata Infotech added 15 new Fortune 500 clients and enhanced TCS’ systems integration and infrastructure service capabilities. [47][48][49]
TCS Management 2006 November IT Services  AU $13 m 35 Access to Australian clients [50][51]
TKS-Teknosoft 2006 November Banking Product   CH $80.4 m 115 Expand product portfolio by acquiring rights to Quartz and ownership of Alpha and e-portfolio, enhanced presence in Switzerland and France [52]
Citigroup Global Services Limited 2008 December Captive BPO of Citigroup Inc.  IND $512 m 12,472 TCS acquired key Banking and Financial Services (BFS) domain knowledge. [53][54]
Supervalu Services India 2010 September Captive IT/BPO unit of Supervalu Inc. in India  IND $100 m 600 TCS had a deal with Supervalu to have their Software Outsourcing to TCS and acquired Supervalu India. [55]
Computational Research Laboratories 2012 August High Performance Computing  IND $34 m 80 Acquire expertise in High Performance Computing (HPC) applications and Cloud services [56][57]
Alti SA 2013 April IT Services  FRA $97.5 Mn 1,200 Access to blue-chip French and European clients in banking, luxury, manufacturing and utilities sectors [58]

Products and services

TCS and its 67 subsidiaries[59] provide a wide range of information technology-related products and services including application development, business process outsourcing, capacity planning, consulting, enterprise software, hardware sizing, payment processing, software management and technology education services.[60] Its established software products are TCS BaNCS and TCS MasterCraft.[61]

Service lines

TCS' services are currently organised into the following service lines (percentage of total TCS revenues in the 2012-13 fiscal year generated by each respective service line is shown in parentheses):

  • Application development and maintenance (43.80%) value;
  • Asset leverage solutions (2.70%);
  • Assurance services (7.70%);
  • Business process outsourcing (12.50%);
  • Consulting (2.00%);
  • Engineering and Industrial services (4.60%);
  • Enterprise solutions (15.20%); and
  • IT infrastructure services (11.50%).[60]

Operations

TCS have 230 offices across 46 countries and 147 delivery centers in 21 countries.[6] At the same date TCS had a total of 58 subsidiary companies.[60]

Locations

TCS has operations in the following locations:

India: Ahmedabad, Bangalore, Baroda, Bhubaneswar, Chennai, Coimbatore, Patna, Delhi, Gandhinagar, Goa, Gurgaon, Guwahati, Hyderabad, Bhopal , Indore, Jamshedpur, Kochi, Kolkata, Lucknow , Kalyanpur, Mumbai, Nagpur, Noida, Pune and Trivandrum[62][63]

Africa: South Africa, Morocco(closed down)[64][65]

Asia (excluding India): Bahrain, China, Israel, UAE, Hong kong, Indonesia, Japan, Malaysia, Philippines, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand, Qatar [66][67][68]

Australia: Australia

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

North America: Canada, Mexico and United States.

South America: Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Uruguay.[69]

TCS BPS

TCS BPS (Business Process Services)is the third-largest India-based IT outsourcing company (after capgemini).[70] The BPS division had revenues of US$1.44 billion in the FY 2012-13 which was 12.5% of the total revenue of TCS.[71] TCS BPS has more than 45,000 employees which serve over 225 million customers across 11 countries.[72] The rate of attrition in BPS division during the financial year 2012-13 was 19.5%.[73]

In 2006, TCS won a $35 million contract from Eli Lilly and Company for providing data management, biostatistics and medical writing services.[74][75]

In 2007, TCS won a major multi-year deal from Swiss pharmaceutical major Hoffmann-La Roche. As per this deal, TCS will provide data management, biostatistics, clinical programming and drug safety support to Hoffmann-La Roche's global pharmaceutical development efforts.[76][77][78]

Tata Consultancy Services has also opened a business process outsourcing facility in the Philippines.[79]

Tata Research Development and Design Centre

Main article: Tata Research Development and Design Centre

TCS established the first software research center in India, the Tata Research Development and Design Centre, in Pune, India in 1981. TRDDC undertakes research in Software engineering, Process engineering and systems research. Researchers at TRDDC also developed MasterCraft (now a suite of digitization and optimization tools)[80] a Model Driven Development software that can automatically create code based on a model of a software, and rewrite the code based on the user's needs.[81] Research at TRDDC has also resulted in the development of Sujal, a low-cost water purifier that can be manufactured using locally available resources. TCS deployed thousands of these filters in the Indian Ocean Tsunami disaster of 2004 as part of its relief activities.[82] This product has been marketed in India as Tata swach, a low cost water purifier.[83]

Innovation Labs

In 2007, TCS launched its co-innovation network, a network of innovation labs, start up alliances, university research departments, and venture capitalists.[84][85] In addition, TCS has 19 innovation labs based in three countries.[86] TCS' partners include Collabnet, Cassatt, academic institutions such as IITs, Stanford, MIT, Carnegie Mellon and venture capitalists like Sequoia and Kleiner Perkins.[87]

Employees

TCS is one of the largest private sector employers in India,[88] and the second-largest employer among listed Indian companies (after Coal India Limited).[89]
TCS had a total of over 335,620 employees as of October 2015, of which 31% were women.[60] The number of non-Indian nationals was 21,282 as at March 31, 2013 (7.7%).[60][90] The employee costs for the FY 2012-13 were US$4.38 billion, which was approx. 38% of the total revenue of the company for that period.[2] In the fiscal year 2012-13, TCS recruited a total of 69,728 new staff, of whom 59,276 were based in India and 10,452 were based in the rest of the world.[60] In the same period, the rate of attrition was 10.6%.[60] The average age of a TCS employee is 28 years.[60] The employee utilisation rate, excluding trainees, for the FY 2012-13 was 82%.[60] TCS was the fifth-largest United States visa recipient in 2008 (after Infosys, CTS, Wipro and Mahindra Satyam).[91][92] In 2012, the Tata group companies, including TCS, were the second largest recipient of H-1B visas.[93][94]

Subramaniam Ramadorai, former CEO of TCS, has written an autobiographical book about his experiences in the company called The TCS Story...and Beyond.[95]

As of June 2014, TCS has over 300,000 employees. It is world's third largest IT employer behind IBM and HP.

Sponsorships

TCS is the title sponsor for Amsterdam Marathon and New York City Marathon[96] and one of the sponsors of Berlin Marathon, Chicago Marathon, Boston Marathon, Mumbai Marathon.[97] In India, it is the title sponsor of World 10K held in Bangalore every year.[98] TCS is a sponsor of Indian Premier League team Rajasthan Royals since 2009.[99] In addition, TCS provides Rajasthan Royals with technology to help in analysis of player performance, simulation and use of RFID tags for tracking the players’ fitness levels and for security purposes in the stadiums.[100][101] TCS sponsors an annual IT quiz for high school students called TCS IT Wiz.[102]

Controversies

Class action lawsuit

On 14 February 2006, U.S. law firm Lieff Cabraser Heimann & Bernstein, LLP filed a nationwide class action lawsuit against Tata.[103] In July 2013, judge Claudia Wilken of the U.S. District Court, Northern District of California in Oakland, California, granted final approval to the settlement of the lawsuit on behalf of all non-U.S. citizens employed by TCS within the state of California from 14 February 2002 to 30 June 2005. The workers claimed that they were forced to sign over their federal and state tax refunds to their employer, as well as stating their Indian salaries were wrongfully deducted from their U.S. pay.[104] On February 22, 2013, the Company entered into an agreement to settle for a sum of INR 16,163 lakhs ($29.75 million), this class action suit filed in a United States Court relating to payment to employees on deputation.[60]

Charleston County in South Carolina sued Tata Consultancy Services for delivering botched software. TCS won the contract to create an online tax system (digiTax) for a $1.2 million. The system was supposed to go live in July 2004 but was plagued by several delays. Tata developed the software at its offshore development center in Chennai, India. The software was rejected by Charleston County during user acceptance testing where it failed to meet even the basic requirements. County sued Tata and it agreed to pay back $1 million in out of court settlement. Charleston County finally bought an off the shelf solution.[105]

Accusations of discrimination

In May 2013, the Canadian Broadcasting Corporation, in its extensive coverage of the hiring of temporary foreign workers in Canada and the unemployment issues faced by Canadians, reported that TCS rarely hires skilled experienced Canadians while advertising open positions in Canada. TCS responded that the company hired more than 125 Canadian workers in 2013 who make less than 1.2% of the 10,452 workers the company has outside of India.[60][106]

In April 2015, a class-action lawsuit against TCS was filed in a San Francisco federal court by a U.S. information technology worker and ex-employee, who accused the company of discriminating against American workers by favoring South Asians in hiring and promotion. The lawsuit claimed that South Asians comprise 95% of the company's 14,000-person U.S. workforce, and that TCS engaged in discriminatory practices by sourcing most of its workforce through the H-1B visa programme, by focusing its U.S.-based hiring disproportionately on South Asians and by favoring South Asian employees in its human resources practices. In response, TCS refuted the plaintiff's claims, assuring that it is an equal opportunity employer and bases its employment practices on non-discriminatory reasons. A spokesperson said that in 2014 alone the company had recruited over 2,600 U.S. hires.[107]

See also

References

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  99. ^ TCS ties up with Rajasthan Royals
  100. ^ TCS is Rajasthan Royals’ tech partner
  101. ^ Tata Consultancy Services enters the Indian Premier League
  102. ^ TCS IT Wiz
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  107. ^ Thibodeau, Patrick (16 April 2015). "IT worker's lawsuit accuses Tata of discrimination". ComputerWorld. Retrieved 16 April 2015.
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