TATA CONSULTANCY SERVICES

Introduction

Profile

Tata Consultancy Services Ltd. (Founded in 1968, went public in August, 2004)

Mission:
To help customers achieve their business objectives by providing innovative, best-in-
class consulting, IT solutions and services.
To make it a joy for all stakeholders to work with us.
Values:
Leading change, Integrity, Respect for the individual, Excellence, Learning and
sharing.

Leadership in IT Outsourcing: TCS is the largest IT consulting company in Asia with 143,000 of
the world's best trained IT consultants and an acknowledged pioneer, innovator and thought leader
in the IT space, having literally coined the term Offshore Development. It is also a global consulting
IT services and systems integrator with a 40-year track record and world class processes and
methodology. TCS has won many accolades for its significant contribution to the maturity and
visibility of the Indian IT services worldwide

Location
TCS is operating in 47. TCS has 50+ delivery centers in India across 15 cities; 15+ development
centers outside India. TCS employees are spread across countries. Thus, Global presence helps in
country availability of competencies for any technical assistance mission or application project. Also
TCS deputes the associates on long term and short term basis to the local countries for specific
engagements.

Turnover
Tata Consultancy Services Limited (TCS) is a leading and Indias largest provider of IT Services
Business Solutions and Outsourcing with revenues of USD 6 Billion during FY08-09.

Number of customers
Over 985 active clients; 6 out of Top 10 US Fortune companies are TCS clients

TCS helps some of the worlds largest companies adopt the right technology-enabled solution that
helps them:
Optimize business performance
Facilitate alignment of business with technology
Connect their extended supply chains
Reduce product development time
Improve product differentiation
Provide real-time business insight
Lower operational costs
TCS Cooperative strategy
Tata Consultancy Services combines its system integration expertise, flexible global delivery model
and deep industry insights with the technological expertise and capabilities of its renowned alliance
partners to offer competitive advantage to its customers. The alliances enable TCS to deliver cutting
edge technological solutions and enhanced services to help customers integrate their business
applications effectively while improving the operational efficiencies and ROI.

Strategic Partners
IBM - Global System Integrator Partner
Oracle - Global System Integrator and Global Certified Advantage Partner
Microsoft - Global System Integrator Partner
SAP - Global Consulting Partner

Strategic Alliances
TCS has strategic relationships with various global technology vendors. These relationships are in
various dimensions such as Customer, Service Provider, Supplier, and Alliance Partner. Extending
collaborative research to several global technology vendors has made relationships with them more
holistic. TCS and these technology vendors collaborate on joint research leveraging each others
strengths to research and to the development of best-of-breed offerings. The intent is to define and
develop solutions with associated services and offer the same as an integrated business model to
customers.
Some of the strategic alliances are listed below.
Intel: TCS engaging in a technology alliance model for collaborate on research and develop
solution.
SAP: SAP as a leading technology and product vendor is one of the key partners of TCS.
Benefit from strategic alliance
Joint innovation engagements
Defining new or improved solutions
Joint go-to-market strategies for the solutions

Acquisition Strategy
TCS is looking at growth from two ways first through organic means and second through the
inorganic way. The inorganic way of growth is through acquisitions of those companies that make
business sense to TCS. The companies should add great value to TCS.
TCS Acquisition of Citigroup Services
TCS gains a range of new capabilities, with end-to-end banking BPO service offerings, and an
opportunity to provide integrated IT and BPO services to the banking market, as well as the
significant contracted revenue commitment.

Tata InfoTech (TIL) Limited was merged into TCS Limited.

TIL was a software services company like TCS with operations in the UK, U.S, and Australia among
others. The merger gave TCS a broader customer base and deeper penetration into key
geographies. The acquisition was touted as providing TCS more ability to provide full-service to
customers in affected markets.

TCS Joint ventures

TCS went for a joint venture (JV) between TCS and SBI (State Bank of India) in Nov 2005 to cater
advanced technology solutions and domain consulting for the banking and financial services sector.
The joint venture is called C-Edge Technologies Ltd. TCS holds 51 per cent of the equity was to offer
transformational capabilities to banks and financial institutions in India.
Path dependency in IT industries
Path dependency is organization mindset and their lack of courage to do what they need to
do. TCS has a mindset to see opportunity and uncertainty, the ability to see a new path
forward and commit to that new path, adeptness in managing the transition to that new
path, and skills in making an organization steerable and agile. All IT companies must build
the ability to see over the horizon, and predict which of the existing seeds of uncertainty will
take hold and reshape the future. We have to practice this perceptual skill constantly so it
will improve.
Mindset to see opportunity and uncertainty
Uncertainty can be a negative if your mindset is pessimistic. The best leaders see
uncertainty as a great opportunity. The smart phone was a great opportunity for
somebody and a problem for somebody else.
Ability to see a new path forward and commit to it.
Any organization must discover how an uncertainty will reshape that need, and find a
new path to filling it. The new path might require designing and delivering a current
need in a new way, or filling a different need altogether.
Do not mismanage your current path but to build your new path at the same time.
TCS have got to realize how fast their existing business will decline if they do not do
digitization and algorithms. If they do not move quickly, they will have nothing left, or
will have so little left that they cannot come back. TCS need to see how quickly they
must add these capabilities and figure how they can get the resources to fund it.

Defining Change Management

Change Management is a common buzz word in todays businesses. With constantly evolving
business goals and strategies, change is inevitable and managing change is essential. Change
management is also used as a catch-all for project activities that may otherwise be overlooked. It is
thus important to understand what it is and how to use it to be effective in the discipline.
Change management is a structured approach for ensuring that changes are thoroughly and
smoothly
implemented and for achieving lasting benefits of change. The change management focus is on the
wider impacts of change, particularly on people and how they, as individuals and teams, move from
the current state to the future state. The change could range from a simple process change to a
major system change to achieve the organizations potential.
There are two types of change management programs:
Systematic organization-wide change initiative that involves an organization-wide
transformation effort.
Specific internal change management or change control program that involves providing
tools and processes to control daily operational or project-specific changes.
Concept of Change Management at TCS
TCS idea of Change Management is to create a sense of ownership of change in employees at all
levels of the organization and to actively involve all levels of management in the design and
implementation of the change strategy. They strongly believe that the outcome of a change
management initiative at an organization level depends to a large extent on how well its people
embrace and support the proposed change. Therefore, we believe that in order to make a change
management effort successful, the organization needs to:
Build and promote a bi-directional communication channel to:
effectively communicate the need for change throughout the organization, and
address employee suggestions, queries and concerns regarding the proposed change

Include successive levels of management in the decision making dialogue to

ensure complete buy into the need for change, and
foster a spirit of collaboration, and

Engage people at all levels of the organization to

create a sense of ownership in them, and
ensure their acceptance of change and their support throughout the change process

Some of the salient features of TCS change management methodology

are

A collaborative (rather than prescriptive) approach to strategy formulation.

The collaborative approach is more client-centered and ensures more cooperation and transparency
from the client, thus, making it relatively easier to implement a change than the prescriptive
approach, which may leave the client feeling hard done by and lead him into reacting by not
cooperating or withholding information.

The involvement of all levels of management in the decision making process.

Buy-ins are sought not just from the Senior Management but also from the Middle Management and
the Operations team that works at the ground level and is most affected by change.
Adopting the Bottom-Up approach to create a vision for change for the Operations team and
having them ultimately drive the change (from root to tip) across the organization.
In a way, we can say that TCS believes in the Evolutionary change as it follows incremental
change with lot of business transformations.

Incremental change
Type of change undergone is different for different pressures. IT organizations that are
undergoing new broom and mandated pressures are demanding for rapid and short burst
type of change. Whereas IT organizations that are experiencing Growth, identity, reputation
and credibility pressures are demanding for incremental and hence organizations constantly
undergoing small changes. The employees acceptance and participation in change differs
with type of change. Employees of TCS feel change is incremental.IT employees are
experiencing different relationships between past and new organizational practices subject
to the strategy of the top management.
IT Organizations undergoing incremental changes are opine that change is risky as change
has disruptive impact on organizations. Employees of TCS opined that change process is
risky as they are undergoing incremental change; while the employees of other
organizations are undergoing different types of changes.
ADKAR Model
Managing organizational change starts with understanding how to manage change with a single
person. Among the tools available to drive individual change, the ADKAR model developed by
Prosci, the world leader in change management research and content creation, is commonly used.
ADKAR is an acronym for Awareness, Desire, Knowledge, Ability, and Reinforcement. In principle, to
make a change successfully an individual needs:

Awareness of the need for change (TCS spread awareness among employees base to understand
the need for the change)
Desire to participate and support the change (collaborative and participative approach with team
building helps to create desire among them)
Knowledge on how to change (availability of expertise and young mindsets at TCS creates
knowledge pool)
Ability to implement required skills and behaviors (capabilities in workforce at TCS to apply require
skills)
Reinforcement to sustain the change (encouraging the established set of pattern and behavior at
TCS)

ADKAR describes successful change at the individual level and outlines the goals or outcomes of
successful change. It is an effective tool for planning change management activities, diagnosing
gaps, developing corrective action, and supporting managers and supervisors.

Change agent - Role

Strong and effective change agents on the ground are critical to the success of any
organizational transformation program. Change agents are passionate about the change
initiative, and can guide and motivate others to adopt the results of the change process

There are two types of change agent role players

Change influencers and strategic leaders who have a positive impact on their department or
are directly responsible for implementing the change. They include sponsors who envision
the change, and champions who obtain the commitment and resources to implement it.
Change targets who are directly impacted by the change. They are typically middle and
lower management associates.

Change agent style: Directional change in TCS

In the course of the transformation, as understanding levels change, people who were
indifferent earlier may exhibit enthusiasm and interest. Change agent need to be observant
of such changes. Similarly, the selected change agents also need to be monitored, as they
may also undergo change and need to be supported to enable successful implementation of
the change.
Defined roles and responsibilities of the change management will help business heads and
key stakeholders decide who can take on the role of a change agent. Both management
and change agent should engage with employees through formal meetings, workshops,
change readiness surveys, informal field visits, and discussions with a view to identify the
right change agents for the job. Participants who are more enthusiastic, show more
understanding of the project, seem curious, make an attempt to clarify their colleagues
doubts and fears, and speak positively about the change could be chosen for the role of the
change agent.
Change lever: Top down
In IT organizations for successful implementation of change, organizations should have
continuous support from both management and employees. Organizations which
successfully implemented major changes in the recent past are providing good support for
change. Companies with no prior experience in major change, change efforts failed. Also IT
organizations with strong financial muscle, visionary top management, and updated clients
are providing tremendous support to their employees.TCS is receiving good support for
change from management in the given order.
TCS idea of Change Management is to create a sense of ownership of change in
employees at all levels of the organization and to actively involve all levels of management
in the design and implementation of the change strategy. They strongly believe that the
outcome of a change management initiative at an organization level depends to a large
extent on how well its people embrace and support the proposed change.
TCS believe that in order to make a change management effort successful, the organization
needs to do following things.
Build and promote a bi-directional communication channel to: effectively
communicate the need for change throughout the organization, and address
employee suggestions, queries and concerns regarding the proposed change
Include successive levels of management in the decision making dialogue .
Ensure complete buy into the need for change, and foster a spirit of collaboration,
and engage people at all levels of the organization.
Create a sense of ownership in them, and ensure their acceptance of change and
their support throughout the change process.
 Corporate Governance

Strong corporate governance that oversees business strategies and ensures fiscal
accountability, ethical corporate behavior and fairness to all stakeholders creates all the
conditions necessary to foster sustainability. Being part of the 147-year old Tata group
which epitomizes sustainability, TCS has inherited a strong legacy of fair, transparent and
ethical governance, as embodied in the Tata Code of Conduct (TCoC).

At the top of the governance structure is the Board of Directors representing the
shareholders, and various Committees on the Board, overseeing the Executive
Management. TCS has a unitary board structure consisting of 11 members of whom 9 are
Non- Executive Directors (including the Chairman) and 6 are Independent Directors.

TCS has been chosen as one of the best-governed companies in the country. TCS have a
great record of corporate governance. They have a set of best practices from the group that
TCS have been able to adopt From then on, we have been continuously evaluating different
best practices from the industryfrom our own sector and from other sectors too. Also, from
India and abroad.

Avoidance of conflict of interest

All employees including the Managing Director and Executive Directors are prohibited from
freelancing or accepting any position of responsibility with or without remuneration with any
other company without TCS' written approval. For Executive Directors and the Managing
Director, such approval must be obtained from the Board.

Board Oversight of the Sustainability Agenda

TCS' Board of Directors meets 7 to 8 times a year instead of the statutory 4 times. While
four of these meetings are for review and approval of financial results, the remainder is for
more detailed oversight of business, strategy and sustainability matters.
This ensures that the Board's focus goes beyond financial performance and covers various
operational and strategic issues including sustainability aspects, budgets, industry
performance, peer review and competition analysis, overall risk assessment, performance
of subsidiaries, opportunities for organic and inorganic growth etc.

Disclosure and Transparency

Benchmarked against global peers, TCS discloses significant - operational and financial
metrics on a quarterly basis. The quarterly, half-yearly and annual results are published in
leading Indian newspapers, emailed out to analysts and investors who subscribe to that
service and posted on the website. Half-yearly results are sent to shareholders along with a
message from the Managing Director on the Company's performance.

Protecting Minority shareholders' interests

The Corporate Governance philosophy at TCS, based on the Tata Code of Conduct,
emphasizes fairness and transparency to all stakeholders. The Company also has a variety
of channels through which minority shareholders can interact with the Management / Board
to express their concerns.

Ethics and Compliance

The Tata Code of Conduct, which every employee signs at the time of joining the Company,
contains 25 clauses that make up a governing framework for responsible corporate
citizenship and ethical behavior. TCS has established procedures to deploy the TCoC and
to enable employees, customers, suppliers and partners to understand the code and follow
it in letter and spirit.

Leadership at TCS
CEO succession is from within the company and top management is
heterogeneous

Strategy will remain stable but innovation will continue

Several benefit are like that firm when the internal labor market is used to select an insider
as the new CEO because of their experience with the market and firm and industry
environment in which it competes ,insiders are familiar with company products ,market
technology and operating process. When the firm performing well internal succession
favored to sustain the market and high performance and it is also important to hire insider
CEO because important knowledge necessary to sustain performance.
Rajesh Gopinathan who has been appointed as the new Chief Executive Officer (CEO) of
Tata Consultancy Services (TCS) who is CFO of TCS. When the Indian IT industry is facing
perhaps its toughest challenge of adapting to radically new digital technologies including
cloud and automation, and the protectionist environment that US president-elect Donald
Trump seeks to create. He announced that he will follow his successor N. Chandrasekaran
but also develop some new strategies.