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Organizational Study at TCS, Trivandrum

CHAPTER 1 INTRODUCTION
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Organizational Study at TCS, Trivandrum

CHAPTER 1 INTRODUCTION
Organization is a social unit which is deliberately constructed and reconstructed to seek specific goals. An organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common endeavour. The evolution of organization dates back to the early stages of human civilization when two or more persons began to co-operate and combine together for fulfilling their basic needs of food, clothing, shelter and protection of life. Thus, an organization is born when people combine their efforts for some common purpose. It is a universal truth that an individual is unable to fulfill his needs and desires alone because he lacks strength, ability and resources. So he seeks the co-operation of other people who share goals with him. With the permission and consent from the company management and our college, I got an opportunity to undertake an Organization study in one of the top software company TATA CONSULTANCY SERVICES (TCS)

1.2 OBJECTIVE OF THE STUDY The following are the specific objectives of this Organization Study. To study the organizational and departmental structure for proper working. To analyze functions performed by the various Departments in the organization. To gather Managerial practical experience in an organization. To secure practical knowledge regarding the HR, Finance, Technical service and Operation aspects. To get familiarized with the real world organization system. To know about the compensation and benefit administration, Grievance procedure, Recruitment, Promotion policy etc. IMK Adoor Page 2

Organizational Study at TCS, Trivandrum

To analyze the internal strengths and weaknesses. To study the competition within the industry.

1.3 SCOPE OF THE STUDY Master of Business Administration being a business oriented course; a practical application and exposure of the theoretical knowledge is most desirable to this course. As the study throws light on the functions of various departments in the company, the study is of great help to gain awareness about organizational atmosphere.

1.4 RESEARCH METHODOLOGY: In this project both types of data where used, that is 1. Primary data 2. Secondary data Primary data The primary data are collected through the observation and lively interaction with the employees, and executives of Tata Consultancy Services. Primary data refers to the data collected by the investigator directly through primary sources. It includes; Direct observation Interview (personal) Secondary data The secondary data are collected by review of literature like, company reports, books, journals, Internet, company website, etc. 1.4 LIMITATIONS Time allotted is not enough to get all the information regarding the organization. Page 3

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Organizational Study at TCS, Trivandrum


Majority of the Employees were busy with their work The conclusion and the inference are drawn based on the information received from the interviews and hence may be colored by personal bias.

1.5 CHAPTERISATION The report has been presented in seven chapter are as follows. CHAPTER 1: CHAPTER 2: CHAPTER 3: CHAPTER 4: CHAPTER 5: CHAPTER 5.1: CHAPTER 5.2: CHAPTER 6: Appendix Bibliography Deals with introduction, objectives of the study, scope and significance of the study, methodological design of the study and limitations of the study It includes industry profile, Size of industry, History, products and services. It includes Company Profile, Objective, Vision and Mission. Deals with different functional departments. Competitive Analysis SWOT analysis Porters Five Force Analysis Deals with finding and conclusion. It also includes self evaluation of study and suggestions and recommendation.

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CHAPTER 2 INDUSTRY PROFILE


CHAPTER 2 INDUSTRIAL PROFILE 2.1Software Industry
History The word "software" had been coined as a prank by at least 1953, but did not appear in print until the 1960s. Before this time, computers were programmed either by customers, or the few commercial computer vendors of the time, such as UNIVAC and IBM. The first company founded to provide software products and services was Computer Usage Company in 1955. The software industry expanded in the early 1960s, almost immediately after computers were first sold in mass-produced quantities. Universities, government, and business customers created a demand for software. Many of these programs were written in-house by full-time staff programmers. Some were distributed freely between users of a particular machine for no charge. Others were done on a commercial basis, and other firms such as Computer Sciences Corporation (founded in 1959) started to grow. The computer-makers started bundling operating systems software and programming environments with their machines. When Digital Equipment Corporation brought a relatively low-priced micro-computer to market, it brought computing within reach of many more companies and universities worldwide, and it spawned great innovation in terms of new, powerful programming languages and methodologies. New software was built for micro-computers, and others, including IBM, followed DECs example quickly, resulting in the IBM AS400 amongst others.

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The industry expanded greatly with the rise of the personal computer in the mid-1970s, which brought computing to the desktop of the office worker. In subsequent years, it also created a growing market for games, applications, and utilities. DOS, Microsoft's first product, was the dominant operating system at the time. In the early years of the 21st century, another successful business model has arisen for hosted software, called software as a service, or SaaS; this was at least the third time this model had been attempted. SaaS reduces the concerns about software piracy, since it can only be accessed through the Web, and by definition no client software is loaded onto the end user's PC.

2.2 Software sectors


There are several types of businesses in the software industry. Infrastructure software, including operating systems, middleware and databases, is made by companies such as Microsoft, IBM, Sybase, EMC, Oracle and VMWare. Enterprise software, the software that automates business processes in finance, production, logistics, sales and marketing, is made by Oracle, SAP AG , Sage and Infor. Security software is made by the likes of Symantec, Trend Micro and Kaspersky. Several industry-specific software makers are also among the largest software companies in the world: SunGard, making software for banks, BlackBoard making software for schools, and companies like Qualcomm or CyberVision making software for telecom companies. Other companies do contract programming to develop unique software for one particular client company, or focus on configuring and customizing suites from large vendors such as SAP or Oracle.

2.3 Leading companies: mindshare and market share


In terms of technology leadership, the software industry has long been led by IBM. However, Microsoft became the dominant PC operating system supplier. Other companies that have substantial mindshare (not: market share) in the software industry are SUN Microsystems, the developer of the Java platform, Red Hat, for its open source momentum, and Google for its Google Docs. However in terms of revenues coming from software sales, the software industry is

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clearly dominated by Microsoft, since inception. Microsoft products are still sold in largest number across the globe.

2.4 The Software Industry in India


With the huge success of the software companies in India, the Indian software industry in turn has become successful in making a mark in the global arena. This industry has been instrumental in driving the economy of the nation on to a rapid growth curve. As per the study of NASSCOM-Deloitte, the contribution of IT/ITES industry to the GDP of the country has soared up to a share of 5% in 2007 from a mere 1.2% in 1998. Besides, this industry has also recorded revenue of US$ 64 billion with a growth rate of 33% in the fiscal year ended in 2008. The export of software has also grown up, which has been instrumental in the huge success of the Indian software companies as well as the industry. In fact, software export from India accounts for more than 65% of the total software revenue. The domestic software market largely depends upon sale of software packages and products, which constitute major part of revenues. Products account for almost 40% of the domestic market. On the other hand, more than 80% of revenue from software exports comes from software services like custom software development and consultancy services etc. GDP Growth, Direct Employment and Revenue growth of IT sector

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Figure No. 2.1

2.5 Reasons behind Success of Indian software companies


There are a number of reasons why the software companies in India have been so successful. Besides the Indian software companies, a number of multinational giants have also plunged into the India IT market. India is the hub of cheap and skilled software professionals, which are available in abundance. It helps the software companies to develop cost-effective business solutions for their clients. As a result, Indian software companies can place their products and services in the global market in the most competitive rate. This is the reason why India has been a favorite destination for outsourcing as well. Many multinational IT giants also have their offshore development centers in India. TOP 10 SOFTWARE COMPANIES IN INDIA Tata Consultancy Services Wipro Limited Infosys HCL Technologies Tech Mahindra Patni Computer Systems i-flex Solutions MphasiS IMK Adoor Page 9

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L&T Infotech IBM India Table No: 2.1
TOP IT COMPANIES IN INDIA

2.6 An over view of the industry:


World-wide technology and related products and services spend is estimated to have crossed USD 1.5 trillion in 2009, a decline of 2.9% over 2008 as per NASSCOM Strategic Review 2010.Due to global economic slowdown, considerable reductions were experienced in IT service spends across categories as global corporations cut back on discretionary spends and focused on leveraging IT spends to drive organization-wide efficiencies, business transformation and adaption of new business.

USD Billion IT Services Business Process Out Sourcing (BPO) Packaged Software Hardware Total

2008 591 110 304 600 1605

2009 589 112 307 550 2558

Growth % 0.3 1.8 1 8.3 2.9

Table No: 2 .2 Worldwide IT Spends (Source: TCS Annual Report 2009-10) The economic downturn contributed to reduction in spending in the first half of 2009 and early signs of pick up in spending became visible in second half of 2009. Companies had reduced IT spending either by delaying the decisions or by putting some discretionary spending on new IT projects on hold in the first half of 2009. This lead to both pricing and volume IMK Adoor Page 10

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pressure for IT service providers. In the second half of 2009 as economic growth showed signs of revival and driven primarily by need to manage cost and increase operational efficiencies, as well as position themselves for anticipated economic growth, many global corporation focused on (1)improvement in business process (2) infrastructure consolidation (3) re-engineering (4)virtualization (5) workload management and (6) cutting down of cycle time and increasing speed on market.

2.7 Size and Scope of Global Opportunity


As per NASSCOM strategic Review 2009 the analysis of the IT services global sourcing market by the level of penetration in various components of IT services reveals that there is significant headroom for growth. Market sizing and long term potential of global sourcing market for the areas of interest of to the company based on the NASSCOM strategic review 2009 and NASSCOM strategic review 2010

Global Source Marketing IT and engineering services BPO Total

Current size - 2009 56 - 58 36 - 38 92 - 96 Table No: 2.3

% of Addressable market not Market addressed 280 appox 80% 220 appox 84% 500 appox 82%

Market sizing and long-term potential of global sourcing market. (Source: TCS Annual Report 2009-10)

2.8 Industry performance and projection:

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Globally technology spending is expected to further increase once the global economic recovery process gathers speed and discretionary spending level increase. Information Technology (IT) has become an integral part of business operation across industries and is seen by organizations as primary driver of productivity improvement and business transformation that lead to sustained competitive advantage in the market place. Some of the future expected drivers for IT spending are anticipated levels of increased regulation especially in banking, financial services and insurance (BFSI) space, security and reporting requirements, and new focus areas including green IT and mobility/ubiquity initiatives.
CAGR (%) 696 3.3

USD Billion IT Services Business Process Out Sourcing (BPO) Packaged Software Hardware Total R&D and Engineering

2008 591

2013

110 304 600 1065 1030

148 381 680 1904 1250

6.2 4.7 2.5 3.5 3.9

Table No: 2.4 Global Technology Spend Forecast (Source: TCS Annual Report 2009-10) Global technology spends is expected to increase from USD 1.6 trillion in 2008 to 1.9 trillion by 2013 at Compounded Annual Growth Rate(CAGR) of 3.5%.

2.9 Training and Development in IT/Software Development Industry


The Indian IT sector is growing at a very fast pace. IT sector generates 2.3 million jobs in 2010, according to NASSCOM (National Association of Software and Service Companies). With this rapid expansion of IT sector and coming up of major players and new technologies like SAP, the need of human resource development has increased.

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According to the recent review by Harvard Business Review, there is a direct link between training investment of the companies and the market capitalization. Those companies with higher training investment had higher market capitalization. It clearly indicates that the companies which have successfully implemented training programs have been able to deliver customer goals with effective results. It shows that good training results in enhancement of individual performance, which in turn, helps the organization in achieving its business goals. Training is a tool that can help in gaining competitive advantage in terms of human resource.

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CHAPTER 3 COMPANY PROFILE


3.1TATA Group
The Tata Group is a multinational conglomerate company headquartered in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India and has been recognized as one of the most respected companies in the world. It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in seven business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel, Corus Steel, Tata Motors, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries, Tata Power, Tata Communications, Tata Teleservices and the Taj Hotels. The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is currently one of the major international business figures in the age of globalization. The company is currently in its fifth generation of family stewardship. The 2009 annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies.

3.2 History

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The beginnings of the Tata Group can be traced back to 1868, when Jamsetji Nusserwanji Tata established a trading company dealing in Cotton in Mumbai. This was followed by the installation of Empress Mills in Nagpur in 1877. Taj Mahal Hotel in Bombay was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji became the chairman of the group after his fathers death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation (1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals (1939), Tata Motors and Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent chairman of the group succeeded JRD Tata in 1991. Engineering

TAL Manufacturing Solutions exports titanium-composite floor beams that are installed in the Boeing 787 aircraft. Tata AutoComp Systems Limited (TACO) and its subsidiaries, auto-component manufacturing Tata Motors (formerly Tata Engineering and Locomotives Company Ltd (TELCO)), manufacturer of commercial vehicles (largest in India) and passenger cars Jaguar and Land Rover Tata Projects Tata Consulting Engineers Limited Telco Construction Equipment Company TRF Bulk Material Handling Equipment & Systems and Port & Yard Equipments. Voltas, consumer electronics company Voltas Global Engineering Centre

Energy

Tata Power is one of the largest private sector power companies. It supplies power to Mumbai, the commercial capital of India and parts of New Delhi.

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Chemicals

Rallis India Tata Pigments Tata Chemicals, headquartered in Mumbai, India, Tata Chemicals has the largest single soda ash production capacity plant in India. Since 2006 Tata Chemicals has owned Brunner Mond, a United Kingdom-based chemical company with operations in Kenya and the Netherlands.

Advinus Therapeutics, headquartered in Bangalore, Indian, a Contract research organization focused on drug discovery and development for Pharmaceutical, Agro and Biotech industries.

Services

The Indian Hotels Company Tata Housing Development Company Ltd. (THDC) TATA AIG General Insurance TATA AIG Life Insurance Tata Advanced Systems Limited Tata Asset Management Tata Financial Services Tata Capital Tata Investment Corporation Tata Quality Management Services Tata Share Registry Tata Strategic Management Group (TSMG) is one of the largest consulting firms in South Asia. Tata Services

Consumer Products

Tata Salt, i-Shakti Salt, Tata Salt Lite Eight O Clock Coffee Page 17

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Tata Ceramics Infiniti Retail Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea products. It also owns the Tetley brand of tea sold primarily in Europe. Titan Industries manufacturers of Titan watches Trent (Westside) Tata Sky Tata International Ltd - Leather Products Division Tanishq jewellery Star Bazaar

Information systems and communications


Computational Research Laboratories INCAT Nelco Nelito Systems Tata Business Support Services (formerly Serwizsol) Tata Consultancy Services Ltd. (TCS) is Asia's largest software company with 2008-09 revenues being over US$ 6 bn. Tata Elxsi is another Software and Industrial design company of the Tata stable. Based in Bangalore and Trivandrum. One of the leading companies in the animation industry of India.

Tata Interactive Systems Tata Technologies Limited Tata Teleservices Tatanet Tata Communications, formerly VSNL, the Indian telecom giant, was acquired in 2002. Tata-owned VSNL acquired Teleglobe in 2005. CMC Limited

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The Tata logo was designed by the Wolff Olins consultancy. The logo is meant to signify fluidity; it may also be seen as a fountain of knowledge; maybe a tree of trust under which people can take refuge. 3.4 Philanthropy and nation building The Tata Group has helped establish and finance numerous quality researches, educational and cultural institutes in India. It is the one of the leading and enormously respected philanthropic corporate entity in India. The Tata Group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of the group's long history of philanthropic activities. Some of the institutes established by the Tata Group are:

Tata Institute of Fundamental Research Tata Institute of Social Sciences Indian Institute of Science National Centre for Performing Arts Tata Management Training Centre Tata Memorial Hospital Tata Trusts, a group of philanthropic organizations run by the head of the business conglomerate Tata Son. The JRD Tata Ecotechnology Centre The Energy and Resources Institute (earlier known as Tata Energy and Research Institute) - which is an NPO completely committed to the cause of research in the field of renewable energy.

A comprehensive list is available on the company website. 3.5 Tata acquisitions and targets

February 2000 - Tetley Tea Company, $407 million March 2004 - Daewoo Commercial Vehicle Company, $102 million August 2004 - NatSteel's Steel business, $292 million November 2004 - Tyco Global Network, $130 million Page 19

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July 2005 - Teleglobe International Holdings, $239 million October 2005 - Good Earth Corporation December 2005 - Millennium Steel, Thailand, $167 million December 2005 - Brunner Mond Chemicals Limited, $120 million June 2006 - Eight O'Clock Coffee, $220 million November 2006 - Ritz Carlton Boston, $170 million Jan 2007 - Corus Group, $12 billion March 2007 - Bumi Resources, $1.1 billion April 2007 - Campton Place Hotel, San Francisco, $60 million February 2008 - General Chemical Industrial Products, $1 billion March 2008 - Jaguar Cars and Land Rover, $2.3 billion March 2008 - Serviplem SA, Spain April 2008 - Comoplesa Lebrero SA, Spain May 2008 - Piaggio Aero Industries S.p.A., Italy June 2008 - China Enterprise Communications, China June 2008 - Neotel, South Africa. October 2008- Miljo Grenland / Innovasjon, Norway Imacid chemical company, Morocco

3.6 Targets

Close Brothers Group, $2.9 billion Orient Express Hotels, $2.5 billion January 2008 - T-Systems International (IT division of Deutsche Telekom)

3.7 Revenue
Tata gets more than 2/3rd of its revenue from outside India.

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3.8 TATA CONSULTANCY SERVICES LIMITED (TCS LIMITED)


Tata Consultancy Services (TCS) is a public company listed on National Stock Exchange of India Limited (NSE) and The Bombay Stock Exchange Limited (BSE) IT is a software services and consulting company headquartered in Mumbai, India

Type Industry Founded Headquarters

Public (BSE: 532540)Subsidiary of Tata Group IT services, IT consulting 1968 Mumbai, Maharashtra, India Ratan Tata (Chairman), S Ramadorai (Vice Chairman) N Chandrasekaran (CEO & MD) TCS Bancss Digital Certification Products Healthcare Management Systems Outsourcing BPO Software Products Rs 30,028.92 crore (US$ 6.4 billion)(2010) Rs 8,305.73 crore (US$ 1.77 billion)(2010) Rs 7,092.66 crore (US$ 1.51 billion)(2010)

Key people

Products

Services Revenue Operating income Profit

Table No: 3.1 An Overview of TCS

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TCS is the largest provider of information technology and business process outsourcing services in Asia. The company is listed on the National Stock Exchange and Bombay Stock Exchange of India. TCS is a flagship subsidiary of one of India's largest and oldest conglomerate company, the Tata Group, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and healthcare.

3.9 History
Tata Consultancy Services was established in the year 1968 and is a pioneer in Information Technology Outsourcing and Management Industry. Despite unfavourable government regulations like the Licence Raj the company succeeded in establishing the Indian IT Industry. It began as the "Tata Computer Centre", for the company Tata Group whose main business was to provide computer services to other group companies. F C Kohli was the first general manager. JRD Tata was the first chairman, followed by Nani Palkhivala. One of TCS' first assignments was to provide punched card services to a sister concern, Tata Steel (then TISCO). It later bagged the country's first software project, the Inter-Branch Reconciliation System (IBRS) for the Central Bank of India. It also provided bureau services to Unit Trust of India, thus becoming one of the first companies to offer BPO services. In the early 1970s, Tata Consultancy Services started exporting its services. TCS's first international order came from Burroughs, one of the first business computer manufacturers. TCS was assigned to write code for the Burroughs machines for several US-based clients. This experience also helped TCS bag its first onsite project - the Institutional Group & Information Company (IGIC), a data centre for ten banks, which catered to two million customers in the US, assigned TCS the task of maintaining and upgrading its computer systems. In 1981, TCS set up India's first software research and development center, the Tata Research Development and Design Center (TRDDC). The first client-dedicated offshore development center was set up for Compaq (then Tandem) in 1985. In 1989, TCS delivered an electronic depository and trading system called SECOM for SIS SegaInterSettle, Switzerland. It was by far the most complex project undertaken by an Indian IT company. TCS followed this up with System X for the Canadian Depository System and also automated the Johannesburg Stock Exchange (JSE). TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired. IMK Adoor Page 22

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In the early 1990s, the Indian IT outsourcing industry grew tremendously due to the Y2K bug and the launch of a unified European currency, Euro. TCS pioneered the factory model for Y2K conversion and developed software tools which automated the conversion process and enabled third-party developers and clients to make use of it. In 1999, TCS saw outsourcing opportunity in E-Commerce and related solutions and set up its EBusiness division with ten people. By 2004, E-Business was contributing half a billion dollars (US) to TCS. On 9 August 2004, TCS became a publicly listed company, much later than its rivals, Infosys, Wipro, Mahindra Satyam and Kale Consultancy Services. During 2004, TCS ventured into a new area for an Indian IT services company Bioinformatics. In 2008, the company went through an internal restructuring exercise that executives claim would bring about agility to the organization. With effect from January 2009, TCS acquired Citigroup Global Services, the in-house Indian BPO of Citigroup thus entering the BFSI segment in a big way. The unit functions as a TCS e-Serve Ltd which is the Banking BPO of TCS.

3.10 Board of directors:


R N Tata (Chairman) S Ramadorai (Vice Chairman) Aman Mehta V Thyagarajan Prof. Clayton M Christensen Dr. Ron Sommer Laura M Cha S Mahalingam(CFO & Executive Director) Phiroz Vandrevela (Executive Director) Dr. Vijay Kelkar IMK Adoor Page 23

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Ishaat Hussain

3.11 Management Team


CEO - N Chandrasekeran CFO - S Mahalingam Corporate Affairs Phiroz Vandrevala Global Human Resource Ajoyendra Mukherjee

3.12 VISION
Global Top 10 by 2010 3.13 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. 3.14 VALUES Leading change, Integrity, Respect for the individual, Excellence, Learning and sharing.

3.15 Awards and Recognitions


Great Place to work (GPTW) 2009 Award for TCS BPO Most Admired Knowledge Enterprise Award for 5th Year in a row. Rank #1 employer among Software companies in Business Todays Best companies to work for survey. Best Human Resource Management Company in China. Recruiting and staffing best in class (RASBIC) Award for Best use of Technology for recruiting for 3rd year in a row. Best Overall Recruiting and Staffing Organization Award(RASBIC) Best Employer Award for TCS BPO by the stars of industry Group. TCS Recommended for enterprise-wide ISO 14001:2004 and OHSAS 18001:2007 Certifications.

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3.16 US Visa Program
TCS was the fourth largest visa recipient in 2008, preceded by Infosys, Wipro and Mahindra Satyam.

3.17 Tata Research Development and Design Center


TCS established the first software research center in India, the Tata Research Development and Design Center, in Pune, India in 1981.TRDDC undertakes research in Software Engineering, Process Engineering and Systems Research. Researchers at TRDDC also developed MasterCraft (now called TCS Code Generator Framework an artificial intelligence software that can automatically create code from a simple computer language, and rewrite the code based on the user's needs. 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.

3.18 Offices and development centres


Indian branches TCS has development centres and/or regional offices in the following Indian cities. Indian Branches Ahmedabad Bangalore Chennai Delhi Goa Hyderabad Kolkata Lucknow IMK Adoor Page 25

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Mumbai Thiruvananthapuram Table No. 3.2 Chennai is the Branch which is having large number of employees and Thiruvananthapuram is the branch (Corporate Learning Center) which is acting as a base branch. Global units

Continent Africa

Branches South Africa, Morocco Bahrain, China Hong Kong, Indonesia, Israel, Japan, Malaysia, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand, UAE

Asia (Outside India) Australia Europe:

Australia Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom Canada, Mexico, USA Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay Table No. 3.3

North America South America

Tata Consultancy Services maintains a very good relation with their clients. TCS mainly provides services to their customers in the following fields:

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IT services Business Process Outsourcing Consulting Industrial services and Engineering Infrastructure outsourcing

Tata Consultancy Services offer their services to their clients from various industries. Some of the related industries are:

Government Retail Manufacturing Telecom Energy and utilities Hi technology Banking and other financial services Travel and hospitality Insurance Healthcare

3.19 Strategy of the company:


The core of TCS strategy is the focus on customer. It enables client to experience a high level of certainty in their IT operations.

3.20 Customer-Centricity to enable certainty of experience:


Our strategy is defined by our ability and experience to play criteria role of a trusted business partner to large global corporations. We have built a customer-centric organization based on the brand promise Experience Certainty. This promise of certainty resonates with customers as it offers them real business results through optimal IT design and deployment. It reflects our ability to solve the customers most challenging business problem. IMK Adoor Page 27

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3.21 Global Network Delivery Model: TCS has established a unique Global Network Delivery Model (GNDM) that allows the company to deliver services to customers from multiple global locations in India, China, Europe, North America and Latin America. The GNDM enables the companys delivery centers to collaborate on project and leverage all its assets in order to ensure One Global Service Standard.

Figure No. 3.1 TCS Revenue from Global Consulting (Source: TCS Annual Report 2009-10)

3.22 Employees
TCS is the largest private sector employer in India with total employee strength of 160,429 including those of its subsidiaries. This diverse and global base of employees from 80 nationalities is central to sustaining TCS competitive edge. TCS has 10400 non Indian nationals (including in subsidiaries) among its employee base globally. The percentage of woman working IMK Adoor Page 28

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for the company is 30%. The company continues to invest in human resource development. The company has a gross addition of 38,054 employees last year. The attrition rate is 11.8% in fiscal year is the lowest in the industry. This low attrition rate has been achieved by continuously investing in learning and development programmes for employees, competitive compensation, creating compelling work environment, empowering employees at all level, as well as well structured reward and recognition mechanism.

Figure No. 3.2 Attrition rate for the last twelve months trends over last four years (Source: TCS Annual Report 2009-10)

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Figure No. 3.3 Increase in Woman Employment of TCS (Source: TCS Annual Report 2009-10)

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CHAPTER 4 DEPARTMENT PROFILE


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4.1 TCS Trivandrum
TCS Trivandrum is a training center for TCS. Here fresh graduates are trained and groomed. The Organizational structure of TCS Trivandrum is as follows

DCH & HEAD AIP

HEAD HR

HEAD LIBRARY & INFORMATIPN HEAD ADMINISTRATIO NN

HEAD IS

HEAD ILP

HEAD ISM

HEAD FINANCE

Chart No. 4.1 TCS TRIVANDRUM ORGANOGRAM Key Term: AIP-Academic Interface Programme DCH- Delivery Center Head ILP- Initial Learning Programme ISM- Information Security Management IS- Infrastructural Services

Different departments are as follows 4.2 HUMAN RESOURCE DEPARTMENT(HR):


The function of Human Resources departments is generally administrative. Efficient and effective management of "Human Capital" has progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data which IMK Adoor Page 32

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traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized Human Resource Management Systems. The Human Resource Development team at TCS Trivandrum is lead by Ms. Brinda Rani who is also the regional head of TCS Trivandrum. The functions of HR department start from induction to release. Some of the functions of HR managers are as follows: HR Work related to Induction till Release of the trainees. Give induction to new joiners: TCS Trivandrum is an ILP centre, where fresh graduates are posted for giving them basic training. It is the duty of HR to give them information regarding TCS policies, rules, regulations etc. Background check (BGC): There are certain minimum qualifications that a candidate should satisfy to get selected to TCS (like 50% for 10th, +2, degree, post-graduation etc). It is the duty of HR to check whether the employee satisfy these conditions. Document verification: Employees have to submit certain documents at the time of joining TCS. It is the duty of HR to verify whether the documents are correct and in the manner that TCS has prescribed. Employee number generation: Each employee is provided with a unique number known as employee number. HR will generate employee number to all new joiners. Handling queries on leave discontinuation, policies, separation etc: New joiners may have certain doubts regarding leave, discontinuation etc. HR can clear all doubts related to the above matter. Preparing weekly and monthly report: HR has to prepare weekly and monthly report of the events happened in TCS. Performance evaluation and performance appraisal: A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated IMK Adoor Page 33

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(generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job based on considerations other than productivity alone. Separation: A permanent employee of TCS can work in TCS till he attain the age of 60. Separation is also possible before the age of 60 in certain cases. Employee can himself resign. The resignation is possible only after one moth of notice period. The employee can be terminated by TCS if he violates TCS policies or if his performance is not up to the limit expected by TCS. Recruitment: Recruitment of this area is done by Chennai branch. TCS Trivandrum is doing support work for recruiting like conducting aptitude test, arranging group discussion etc. For the recruitment of experienced persons HR interview will be conducted by TCS Trivandrum on need basis. Mainly support function is done and on the need basis recruitment is done by TCS Trivandrum. Talent management and performance appraisal is also done. Members in HR Department: There is about 8 permanent staff in HR department. Employees enjoys lots of privileges like Paid vacation: The employees are provided with certain number of paid vacation like casual leave, sick leave etc.

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HIS coverage: Health Insurance Coverage is given to all employees. For that a fixed amount of money is deducted from their salary and there is a provision for employees to include their dependents, spouse and two children. Provident Fund and Gratuity: PF and gratuity is provided to employees as per the policies etc. These permanent staffs can work in TCS till the age of 60. Separation can also be possible before this age. Separation is one of the HR function. Resignation is one form of separation and there will be one month notice period before designation. Contract employees do not enjoy all of the above privileges. They are either directly recruited by TCS or through some agencies. They dont want to give notice one month prior to resignation. They are not eligible for performance appraisal. They have less job security as compared to permanent staff. Besides resignation there are other ways of separation like termination. Terminations can be done to employees for their poor performance, indiscipline action, etc Maitree Maitree is founded in 2002 by Mrs. Mala Ramadorai wife of Mr. S Ramadorai previous CEO of TCS, of all members extended beyond the corporate. The aim of this organization is to create a network of interaction between the corporate and the extended families and to add to values of each others life in various ways It has various functions such as stress management, social services etc. Stress Management Techniques: TCS is organizing certain Stress management techniques like, counseling, family outing, cultural programs etc. Certain social services are also done under maitree like taking classes to children in slums, conducting exhibitions of things made by handicapped children etc. IMK Adoor Page 35

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Welfare officer: TCS Trivandrum is having a welfare officer, who takes care of employees. Grievance handling is also done by the welfare officer. Employees can directly post their grievance in Knowmax (TCS website). Issue tracker is available in Knowmax which help to solve grievance. The attrition rate is 11.8% in fiscal year is the lowest in the industry. This low attrition rate has been achieved by continuously investing in learning and development programmes for employees, competitive compensation, creating compelling work environment, empowering employees at all level, as well as well structured reward and recognition mechanism. The below diagram will show more details about the HR department.

Regional Head HR Sr. Mngr.Legal Complianc e

Induction / Release

PMO Managem ent

Maitree / Seperatio n

Faculty Deploym ent

RMG ILP

Shared Services

Figure No.4.2 HR ORGANOGRAM IMK Adoor Page 36

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4.3 INITIAL LEARNING PROGRAMME [ILP]


TCS ILP Trivandrum is the central and integrated training wing of TCS India where fresh graduates from technical and nontechnical streams are trained before they join their specific TCS branches as employees. The Initial Learning Programme aims to convert the young professionals into more focused and competent resources with and infused spirit of the Tata Culture. At present the course runs for duration of 3 months during which they also gain exposure to corporate functions and protocols apart from stream centric training. At present it accommodates an average of 35 to 36 trainees per batch under various technical and management streams. Here learning takes place alongside intelligent fun and other employee engagement activities. The training runs for a stipulated duration with the formalities and procedures running alongside after which it wraps up batch wise. The participants then are placed across the TCS organizations by the Resource Management Group (RMG) in consultation with the Corporate Head Office depending on the employment requirements for the particular quarters.

Figure No. 4.1

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Number of Trainees who completed Initial Learning Process(Source: TCS Annual Report 2009-10)

TCS ILP Trivandrum has proven to be an effective grooming and training center by moulding well equipped workforce that fits the future career demands. More than 17, 524 trainees completed ILP training during last financial year. Initial Learning Process consist of two parts, common ILP and stream ILP. Common ILP is conducted to make the trainees aware of TCS policies. In otherwords it can be termed as general induction. Tests will be conducted after the completion of common ILP and on the sucessful completion of common ILP trainees will be moved to stream training. Trainees are batched into streams on the base of TCS requirements and taent of the trainee. Stream training is for 3 months and based on the sucessful completion of stream training trainees are posted to placed across the TCS organizations by the Resource Management Group (RMG) in consultation with the Corporate Head Office depending on the employment requirements for the particular quarters

Functions of ILP are as follows:


Formulation of strategy for initial learning program:

Prepare strategy for ILP: ILP strategy will be formulated in tune with the growth strategies and organizational needs with respect to fresher recruitment. This is revised annually. ILP strategy will also include directions on use of innovative ways and modes of delivering learning Review and approval of strategy for ILP: Head, Global L&D would review and approve the ILP strategy. Communicate strategy for ILP: Head, ILP will communicate the strategy to all relevant stakeholders including key roles in L&D, Business and HR. Define Initial learning plan: Page 38

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Initial learning plan includes preparing batching plan, faculty needs plan, Prepare or Revise/Customise ILP Curriculum, Release and Approval of the ILP plan/Curriculum, etc

Prepare the schedule for the learning program

Preparation of the schedule for the learning program includes Identify faculty for conducting ILP components. Arrange for appropriate instructional resources. Finalize and release the schedule. Arrange for all resources related to the program Conduct the learning program:

Maintain record of participants attendance: Attendance of participants is tracked on a daily basis and records are maintained. Evaluate participants performance: Participants performance is evaluated based on the evaluation guidelines. Suitable follow up action is identified and implemented for participants who do not meet the performance criteria. Maintain record of the participants performance :The ILP manager delivery/ technical/lifeskills shall keep record of the performance of the participants.The consolidated records of performance of ILP participants across centers shall be maintained by ILP PMO Identify absenteeism of participants and take necessary follow-up actions The ILP manager delivery /ILP coordinator shall keep track of absenteeism among participants and shall report to HR as per the organizational guidelines Consolidate feedback form from participants Consolidate feedback form from faculty Initiate Remedial Action, if any

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Completion of the learning program:

Prepare and release the reports for every ILP batch: The ILP coordinator will ensure that the following reports are released when a batch completes all the learning programs.

Participants Performance Report (PPR) Program Summary Report (PSR) Place of Transfer and Missed Courses Report , if applicable Participants Performance Analysis Report

Maintaining ILP Records. Conduct faculty Development programs:

Collect the details of the faculty identified for conducting ILP Evaluate the identified faculty for the need to undergo FDP Schedule and conduct FDP Analyse effectiveness of learning program: Collect feedback from past ILP Participants and their Project Leaders. Generate Reports on Effectiveness of ILP. Identify appropriate Remedial action, if needed (QC) based on analysis. Implement Remedial action. Update courseware:

Identify the person (s) for developing/updating ILP instructional resource Update/Develop ILP instructional resource Organize and conduct the review of the ILP instructional resource developed/modified Authorize the release of ILP instructional resource (ILP-H)

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Update ILP Directory of Instructional Resource (ILP-DIR) reflecting the version status of instructional resource Reporting ILP activities:

Status Reporting Collect & collate data Report the ILP activities and metrics in respective areas.

VP HR

L&D Head

ILP Head

Planning Manager

Digitization Manager

Delivery Managers Technical & Soft Skills Managers PMO Manager

Chart No. 4.3

ILP ORGANOGRAM

4.4 FINANCE DEPARTMENT

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Financial Performance In fiscal 2010, the global economic environment continued to be difficult. TCS focused on the delivery value to its customers while improving its profitability. This has resulted in record level of pre-tax and post-tax profit, earning per share and cash flow from operations. The financial performance reflected the strength of the companys leadership, strategy, and ability to navigate through challenging economic environment. In fiscal 2010, the consolidated revenue of the company aggregated to Rs.30,028.92 crore (Rs.27,812.88 crore in fiscal 2009) registering a growth of 7.97%. The consolidated profit before taxes (PBT) aggregated Rs.8,289.63 crore in fiscal 2010 (Rs.6,150.07 crore in fiscal 2009) a growth of 34.79%. Pre-tax profit as a percentage of revenues improved from 22.11% in fiscal 2009 to 27.61% in fiscal 2010. The consolidated profit after taxes aggregated Rs. 7,000.64 crore (Rs.5,256.42 crore in fiscal 2009) growth of 33.18%. Post-tax as a percentage of revenue improved from 18.90% in fiscal 2009 to 23.31% in fiscal 2010.

Figure No. 4.2 Industrial Segment Revenues 2009-10(Source: TCS Annual Report 2009-10) Finance Department TCS Trivandrum IMK Adoor Page 42

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The finance department TCS Trivandrum is headed by Mr. Mathew. The department is constituted of its Branch head and two associate Branch head. Although being a three member department it runs efficiently and effectively. TCS Trivandrum is an ILP center, so the functions of this department are limited. Major financial functions like preparing financial statements, salary to the employees etc will be concentrated on the corporate finance department.

Major functions of Finance Department of TCS Trivandrum: Claim handling: Employees can claim for certain reimbursement, like medical reimbursement, advanced salary etc. This is handled by the finance department. Tax deduction: It is the duty of the employer to reduce the tax liability of the employees at the source. The finance department is deducting the tax of the employees of TCS Trivandrum. Expenses related to accommodation (trainees, clients, etc), repair and maintenance of the building of TCS Trivandrum, etc is handled by this department. Asset accounting MIS Preparing cash flow statement of TCS Trivandrum Bank Reconciliation and Payment to employees (Partially)

Head Finance

Branch Assistance Head IMK Adoor

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Chart No. 4.4 FINANCE ORGANOGRAM

4.5 ADMINISTRATION DEPARTMENT


The administration department at TCS Trivandrum is headed by Brig Suresh Nair and is a team of 9 members .The array of functions handled by this department is large and it has no lines separating one role from another . The roles are multi functional and interspersed which makes it not so easy to define each associates roles by distinct terms. Key functions at Administration department Accommodation, Hostel, Hotel and TQ (Transit Quote) at Trivandrum. Transport. Travel, Booking, G Form (Green Form): Green Form is an agency which provides contract employees to TCS. Salary of the contract employees are given through these agencies. Security and Fire fighting. Housekeeping. Transit Quote maintenance. Hospitality. Courier Service.

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Communication. Maintenance of infrastructure. Booking of meeting rooms. Building Management System (BMS). Tata Code of Conduct. Contracts/ Statutory compliances. Import/export, canteen etc. HEAD ADMIN

Retainer ( COL. VPS Nair Retd. )

IPD ( TH Salim )

Admin Officer ( Shibu George )

Admin Officer ( J Geetha )

Admin Officer (P.T Rajalakshmi)

Admin Officer ( Reji S Nair )

Admin Officer ( Archana Baby )

Admin Officer ( Rakhi Vinod )

Chart No. 4.5 ADMINISTRATION ORGANOGRAM

4.6 LIBRARY & INFORMATION SERVICES DEPARTMENT


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Library and Information Services department of TCS Trivandrum is headed by Mr. Krishna Kumar. This department at TCS Trivandrum looks at the library needs of the Trainees at ILP and the TCS associates. All the activities pertaining maintaining and running a library are found here along with some special nodal activities exclusive for TCS. The department has three associates and caries out the functions in a timely manner.

Basic functions of this department: Transaction of books: Various types of books are like technical, management, fictions etc are available in the library. All trainees and employees have access to the library. Transaction of books to employees is one of the functions of Library and information system. Query based function: (Global Help Desk) Providing information to all employees.

Computers are available in the library. All those who have India Domine ID and password can use computers. The library timing varies according to the requirement.

Branch Head

Library Officer Chart No. 4.6

Library Officer

LIB & INFO SERVICES ORGANOGRAM

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4.7 ACADEMIC INTERFACE PROGRAMME [AIP]
The Academic Interface Programme at TCS Trivandrum is a functional unit that is connects between academic institutions and TCS. Lead by Mr KeshavaSwamy who is the Global Head AIP, the department functions on maintaining and establishing relationship with academic institutions as its primary objective. It also facilitates programs for the benefit of academia and nurtures the relationship for the purpose of hiring, learning and meeting the research needs of the company. It is a four member team. Academic program Continuous interaction with universities and other educational institutions remains a central plank of TCS strategy to attract the best scientific and engineering talent. TCS has also setup an Industry Academia collaboration network with some of the foremost universities in India and rest of the world.

Figure No. 4.3 Academic interface program workshops conducted, faculty trained. (Source: TCS Annual Report 2009-10) Talent acquisition IMK Adoor Page 47

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The company continues to invest in improving the overall quality of engineering talent in India through a stringent academic accreditation program that helps benchmark and improve the quality of learning at colleges. The company also provides internships and projects to students. As a result of these initiatives, TCS continues to be an employer of choice on engineering campuses across the country.

Figure No. 4.4 Number of TCS accredited academic institutions. (Source: TCS Annual Report 2009-10) Functions of AIP Create and maintain good relationship with foremost universities in India and rest of the world. Conduct workshops and faculty training programs in these institutions.

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Providing internship and projects to students. Continuous interaction with universities and other institutions. Talent acquisition.

AIP cooperates with Talent Accusation Group (TAG) in accruing fresh talents. Most popular mode of recruitment in TCS is through campus selection. Mainly from those institutions which are accredited to TCS. Institutions are accredited on the base of quality of students. Joining rate is a factor which determines the retention of the accreditation. Mr. John Joseph is the Academic Relationship Manager (ARM) in the corporate level. He works from Trivandrum. The department structure and reporting is seen in the diagram below.

Global Head AIP

Corporate Manager AIP Academic Relationship Manager AIP Coordinator Chart No. 4.7 AIP ORGANOGRAM

4.8 INFRASTRUCTURE SERVICES [IS]

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Information Technology Infrastructural Services department at TCS Trivandrum exemplifies a well coordinated and cross functional department. Headed by Mr. Peter, the Information Technology Infrastructure Services (ITIS) department stands to an efficient group tackling all issues concerning IT Infrastructure. They maintain internal servers, Enterprise security Management and carry out various other mandatory tasks to suit the requirement of the ILP trainees and the whole system. The team undertakes Remote installing processes for other centers besides being responsible for timely virus updates, trouble shoot procedures and other updating activities. Functions of IS Provides end-to-end IT Infrastructure Services that suite the requirements of ILP trainees and the whole system. Enterprise security management. Trouble shooting, virus updates and other updating activities. Remote installing process.

SDO

Resident Engineer

Team Lead Windows

Team Lead UNIX

Team Lead Network

SDO- Service Delivery Owner


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Chart No. 4.8 IS ORGANOGRAM

Over the last four years IS unit of TCS has been growing at a CAGR of 46%. During the financial year the unit bagged new deals in business transformation solution, new delivery models, Remote Infrastructure Management (RIM) and end-to-end infrastructure services. During the year TCS Infrastructure Management services offering won and receive evaluations and accolades throughout the year.

4.9 INFORMATION SECURITY MANAGEMENT [ISM]


The ISM or the Information Security Management department is a part of the L&D OU of the Tata Consultancy Services. Mrs. Neha Saran IT Analyst is the department head and holds responsibility for all the ILP in centers in India. The various roles and functions in the department are carrying out security awareness sessions, insuring compliance to TCS Security Policy and aiding the security requirements of all the departments. The organogram below illustrates the department structure and reporting structure. It is working very efficiently even though it is a one member team. Functions of ISM Induction to the newly joined trainees about doess and donts related to security. Different domain complies check. Ensure complies check with TCS security policies. Incidence marking. That is finding out any security violation and taking disciplinary actions. Reasons for Security control measures: Productivity loss: employees may be interested in social media sites, which can reduce productivity. IMK Adoor Page 51

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Bandwidth: If the employees started downloading, band width of items downloaded may increase, thus loss to the organization. Security: Security issues like virus attack, confidentiality.

L & D Head

Corporate ISM

DCH

ISM IT Analyst Chart No. 4.9 ISM ORGANOGRAM

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CHAPTER 5 COMPETITIVE ANALYSIS


Chapter 5.1 SWOT Analysis

Figure No.5.1 SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.

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Strengths: attributes of the person or company that are helpful to achieving Weaknesses: attributes of the person or company that are harmful to Opportunities: external conditions that are helpful to achieving the Threats: external conditions which could do damage to the objective(s).

the objective(s).

achieving the objective(s).

objective(s).

5.11 SWOT analysis of TCS


Tata Consultancy Services (TCS) is one of the leading provides of information technology services. The company provides wide range of services including business consulting, information technology, business process outsourcing, infrastructure, and engineering. The company primarily operates in the US. It is headquartered in Mumbai, India and employs about 160,429 people .The company recorded revenues of INR 300289.2 million during the fiscal year ended March 2010, an increase of 7.9% over 2009. Strengths: Good working Environment: TCS is providing good working environment for its employees. Performance evaluation is done for every employee and they are provided with reasonable remuneration. Issue tracking is available through which issues of employees can be identified and tackled easily. Brand Name of TATA: TCS is from TATA family. The goodwill helps to acquire loyal customers, talented employees etc. High R&D: TCS Corporate Technology Office (CTO) and TCS R&D continued to support TCS customers across vertical. This helps to acquire employees, customers and satisfy their needs. The R&D efforts of the company have resulted in creation of software tools and thereby yield savings of $24.8 million.

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Strong financial position: TCS is having a good financial position. The consolidated revenue of the company aggregated to Rs.30,028.92 crore for the fiscal 2010 and the consolidated profit before taxes (PBT) aggregated Rs.8,289.63 crore in fiscal 2010 Weaknesses: Limited accommodation facilities in the executive hostel: Only limited trainees can be accommodated in the executive hostel. When the number of trainees is large then accommodation to the excess trainees are provided to outside hostels. Transport facility is not provided to general shift employees unlike other centers: Transport facility (TCS bus, cab, etc) is not provided to general shift employees. If the employees have to extent their working time, it will be difficult to travel alone, especially for lady staff. Using large number of contract staff in this centre when unallocated employees (Bench staffs) are available in other branches. Water gardens are not properly maintained in TCS Trivandrum campus. This may help in mosquito breeding and thus spread of diseases. Opportunities: Opportunity to acquire more clients in all verticals. Currently BFSI is the largest vertical of TCS. Maximum utilization of available workforce. Reduce the unallocated time of employees (ie reduce bench strength and time release of an employee from project to project) Highly talented employees can be acquired by TCS by giving more emphasis on its Brand name. There may be lots of talents in small IT companies with a dream to work in the reputed TATA group. TCS brand name can be used to acquire fresh talents from campus. In certain branches TCS is restricted to ILP centre. These can be developed to deployment centers. Threats:

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Foreign Exchange Volatility Related Risks: The Company uses various types of foreign currency forward and options contracts to hedge the risks associated with fluctuations in these currencies. Global market Risk: Unexpected economic slowdown like the global recession will affect the performance of the company. Increase in competition: TCS is facing competition from other companies like Infosys, Wipro, Mahindra Satyam etc from India and companies like IBM, Accenture etc over the world. Attrition rate: The attrition rate of TCS is 11.8% in fiscal 2010. While in previous year it was 11.4%. Even though TCS attrition rate is lowest in the industry, the tendency of growth in attrition rate is a serious threat.

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CHAPTER 5.2 PORTERS FIVE FORCE MODEL ANALYSIS


Chapter 5.2 Porter's five force Analysis

Figure No. 5.2

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Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally, requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. This five forces analysis is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies. The threat of the entry of new competitors: Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards zero (perfect competition). The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in which entry barriers are high and exit barriers are low. Entering in an IT sector is restricted by patents, rights etc. TCS being a well reputed company, the entry of new competitors will not affect TCS.

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Brand equity: TCS is having a very good brand. This brand will help TCS to maintain its stability even at the entrance of new competitors. Switching costs or sunk costs: Switching cost of the customers will be very high. Especially when the customers switch to new IT companies, the switching cost will be high. Capital requirements: Capital requirement for staring an IT company is very high. Capital requirement is a barrier to new entrance into IT sector. Customer loyalty to established brands: Customers will be loyal to the existing brands if they are satisfied by the services provided by the company. So it will be difficult for the new companies to get or acquire loyal customers of existing companies. Government policies: Government policies related to the stating new companies, opening branches in onsite etc may also act as a threat to new entrance. The intensity of competitive rivalry: For IT industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Sustainable competitive advantage through innovation: TCS is having innovation Labs committed to create value for clients and are lead by some of the most established names in the academic and research communities. This innovation lab helps TCS to stay competitive. Level of advertising expense: TCS is spending a huge amount for advertisement. This will also helps to stay competitive and to reduce competitive rivalry. Powerful competitive strategy: TCS is having powerful competitive strategy with its slogan Experience Certainty. Clients can experience certainty with TCS and this competitive strategy of TCS will help to reduce competitive rivalry. The visibility of proprietary items on the Web: TCS is having an attractive website that can help to attract more customers. The threat of substitute products or services: The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives:

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Relative price performance of substitute: TCS is offering good pricing policy to prevent the customers to move to the substitute products. Buyer switching costs: Switching cost of buyers will be very high, especially in IT industry. Once a particular service is selected, it will cost much to move to another. Perceived level of product differentiation: TCS is having a strong product differentiation in terms of quality, delivery time etc. which prevents the clients to search substitutes. Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product. Quality depreciation: TCS always maintain specified quality in its product and services. TCS is termed as CMMI Level 5 Company. It maintain an inbuilt quality system iQMS (internal Quality Management System)

The bargaining power of customers (buyers): The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customers sensitivity to price changes. TCS is having a good brand name that helps to attract customers. TCS always tries to retain its existing customers by making customers to Experience Certainty Certain clients of TCS like GE, THD, etc are having projects in competitors like Infosys, Wipro etc. So TCS is providing its customers with best quality to make the clients to switch to TCS. TCS is termed as CMMI Level 5 Company. TCS is having an inbuilt quality system iQMS which ensure internal quality. TCS provides world class security procedure to its clients. The clients are provided with opportunity to visit their project to check the security given to their projects. Buyer price sensitivity: Buyers are usually price sensitive. In order to attract and maintain buyers TCS is following good pricing strategy. TCS always tries to maintain good relation with top level management of its clients. The bargaining power of suppliers:

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The bargaining power of suppliers is also described as the market of inputs. Major suppliers as far as an IT industry is concerned are those who supplies labor, computers (and related items) and services (such as expertise) to the firm. These can extend certain source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. TCS is maintaining good relation with universities and certain institutions. A separate department Academic Interface Program (AIP) is working for this and ensures uninterrupted supply of fresh talents. For the supply of computers and related equipments TCS is having more than one supplier which again reduces the bargaining power of suppliers. In the case of supply of service like mainframes, only few suppliers like IBM are available. In this case the bargaining power is high. In such cases TCS will enter into agreements with those companies to reduce the bargaining power. Supplier competition: TCS being a well reputed company, suppliers bargaining power can be reduced to certain extent because getting a client like TCS can increase their revenue.

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CHAPTER 6 FINDINGS, CONCLUSIONS & SUGGESTIONS


CHAPTER 6 FINDINGS, CONCLUSIONS & SUGGESTIONS
FINDINGS OF THE STUDY TCS is providing a good working environment to its employees. TCS Trivandrum campus is eco friendly. Large number of contract employees are working in TCS Trivandrum. TCS Trivandrum is an ILP center. Academic Interface Programme (AIP) department in association with Talent Accusation Group (TAG) is maintaining a good relationship with top educational institution which helps TCS in accruing fresh talents. Mostly TCS is recruiting fresher. The proportion of experienced persons recruited is less as compared to fresher. Major mode of recruitment is campus placement. Gymnasium is available in the campus. Hostel facility is available and it is mandatory that all trainees should stay in hostel. Page 65

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Library is available in the campus for trainees as well as employees. Good cooperation between different departments. Under Maitree, TCS is conducting family day, counseling, medical camp etc. Health Insurance is available to all permanent employees PF and gratuity is also available to all permanent employees Provision for posting their Ideas is provided to employees. Canteen facility is available to employees.

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CONCLUSION
CONCLUSION OF THE STUDY: It has been a great experience for me to do the study in TCS Trivandrum which is an MNC with branches all over the world The study carried out threw light on various department of TCS Trivandrum. This study helped to gain practical experience in a topic which has got very relevance. TCS is from the family of TATA group and is having all the qualities of TATA family. The earnest effort of management and the willing co-operation of the workers have put TCS on the track of prosperity.

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Organizational Study at TCS, Trivandrum

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Organizational Study at TCS, Trivandrum

SUGGESTIONS
SUGGESTIONS
Transport facility can be provided to all employees. Reduce contract employees and make use of employees on bench. Give opportunities to trainees to participate in activities conducted by Maitree. Clicker can be provided to trainees to mark their attendance and to answer objective question. Camera should be made available in all class rooms to watch behavior of student during secessions. Quality of food in the canteen can be increased. Crushes can be made available. More employees can participate in Technopark cultural activities. Interior of the campus can be made more greenish. The center can be developed into a deployment center.

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Organizational Study at TCS, Trivandrum

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Organizational Study at TCS, Trivandrum

BIBLIOGRAPHY
BIBLIOGRAPHY
1. Kothari.C.R,(2006), Research Methodology- Methods & Techniques, New Age International Publishers,New Delhi. 2. Dr.Nair Rajan.N, Nair Sajith-Marketing, (1993), Sultan Chand & Sons, New Delhi. 3. Dr.Gupta.S.L, (2005), Brand Management Text & Cases, Himalaya Publishing House, New Delhi. 4. Parameswaran.M.G, (2001), Brand Building- Advertising Concepts & Cases, Tata Mc GrawHill Publishing Co, New Delhi. 5. Percy Larry, Richard Elliott ( 2007), Strategic Brand Management, Oxford University Press, U.K 6. Mathur.U.C, (2006), Brand Management Text & Cases, Macmillan, New Delhi. 7. Dr.Kaptan.S.S, Dr.Pandey.S (2004), Brand Imitation, Himalaya Publishing House, New Delhi. 8. Bhattacharya Kumar Dipak,(2006),Research Methodology, Excel Books, New Delhi. 9. Nandagopal.R, Arul Rajan.K, Vivek.N,(2008),Research Methods in Business,Excel Books, New Delhi. IMK Adoor Page 71

Organizational Study at TCS, Trivandrum


10. Rao Bhujanga Aditham, (2008), Research Methodology for Management & Social Sciences, Excel Books, New Delhi. 11. Annual Report 2009-10 Website www.tcs.com www.google.com

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