This action might not be possible to undo. Are you sure you want to continue?
“TATA Consultancy Services”
Submitted to: Dr. Brinda Balakrishnan
Submitted By: Aniruddh Sharma (83008) Divya Chaturvedi (83020) Mukesh Bansal (83033) Sourav Sagar Mishra (83049) Vikash Kumar Singh (83056)
Chapters Chapter 1 1.1.1 1.1.2 1.2 1.3. 1.3.1 1.4 1.4.1 1.4.2 1.4.3 1.5.1 1.5.2 1.6 Topics Company Profile Basic Facts About the company TCS Global Leadership Team Organizational Structure Evolution Of TCS Why TCS is a MNC? TCS’s Global Route Organizational Change Impact Of Recession TCS’s Response To The Recession SWOT Analysis of TCS 5 6 6 8 8 8 9 9 9 10 10 11 Page No.
Chapter 2 2.1 2.1.1 2.1.2 2.1.3 2.2 2.3.1 2.3.2 2.4 2.5 2.6 Chapter 3 3.1
Company’s Strategy & Factor Analysis TCS Strategy Global Network Delivery Model Strategic Acquisition Integrated Full Services Play Portor’s Model Analysis CORE Values of TCS Culture @ TCS Political Environment Legal Environment Socio-Cultural Factors of TCS Resource Management (Country Specific) Preamble (USA specific)
13 13 13 14 15 15 17 18 18 19
3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 3.3.2 3.3.3 188.8.131.52 184.108.40.206 220.127.116.11 3.4 3.4.1 3.5 3.5.1 3.5.2 3.6
HR @ TCS Staffing Model Recruitment Process Recruitment Objective (Live Case) Compensation Compensation Management Compensation Structure Overseas Assignment (USA) TCS – Overseas Deputation Agreement Prior to Overseas Assignment Other Asistence During Transition Training & Development TCS Global Learning Centre - Trivendrum Employee Engagement Performance Appraisal Talent Retention Community Relations (Outside India) Bibliography
22 24 26 28 30 31 33 33 34 35 35 36 38 39 39
___________________________________________ Chapter 1
90 domestically & 19.22 internationally) in 2009 compared to 51. TCS china.000 4.1 Basic Facts • • • • • Founded in 1968 by TATA group Head Quarter TCS House. Germany. Raveline Street.43. TCS USA. India CEO S.000 5. 43.0 Billion Home Country India Manpower cost 52.000 Region North America South America UK China Australia APAC ex India No. Mumbai .500 1300 1000 4000 • • • • • • • • • Key foreign subsidiaries includes TCS Australia. NSE Total Market capitalization = $ 15 billion Revenue = $6 billion Employee productivity ratio = $ 6 bn / 1. TCS Mexico. of offices 29 12 17 04 03 24 No. Fort. Canada. France.000 = $ 2.1. Listed in NYSE.47% in 2008. UAE.12% of revenue (32. RamaDorai An MNC having 142 offices in 42 countries across globe Total Head Count 1.1 mn. TCS Thailand Regional offices at South Africa.400 001. Singapore. 5 . BSE. of employees 14. Hong Kong. Chile. TCS UK. Uruguay. Argentina Revenue $6. TCS Brazil.1.
S. establishing its leadership in consulting and solutions space. New York Stock Exchange • TCS is part of one of India's largest and oldest conglomerates. financial services. three offices in Canada. TCS has also invested in SAS and SAP Technology Centers of Excellence (CoE) to support its near shore delivery capabilities at Melbourne. telecommunications. London Stock Exchange. In order to meet the unique needs of customers. provide near shore. which specializes in business and technology transformation. • It is Asia's largest provider of Information Technology and business process outsourcing services. that operates across the Spanish and Portuguese speaking regions of the world. 6 . materials.2 About the Company • Tata Consultancy Services Limited (TCS) (BSE: 532540. 1. chemicals.1. Today. which has interests in areas such as energy. TCS acquired consulting firm in Australia. In 2006.. The company is listed on the National Stock Exchange and Bombay Stock Exchange of India.000 consultants delivering real business results to customers. manufacturing. There are 4 development centers and 4 centers of excellence that create winning solutions for American customers. government and healthcare. the Tata Group. TCS acquired Sydney based FNS in 2005 to strengthen its banking solutions portfolio. engineering. TCS has 23 offices in U. with strong domain capabilities on the platform of delivery excellence. TCS South America TCS in South America forms part of the the Latin America business arm of Tata Consultancy Services. NSE: TCS) is a software services and consulting company. three offices in Mexico and more than 14.1.2 TCS Global TCS Australia TCS. TCS North America TCS was the first Indian technology firm to set up operations in New York City in 1979. high profile technology services to ANZ customers.
TCS South Africa Pty Ltd. which has not only helped expand the economies of their countries but also enhanced the knowledge and competitiveness of their labor forces. TCS operates Global Delivery centers (GDC) in Brazil. Central America. Uruguay.and to improve our services and the overall experience of our clients in South Africa. other than the acquisition of a Chilean BPO firm in 2005. Spain & Portugal. Argentina and Mexico at CMMi Level 5. TCS is committed to the development of South Africa. These include Nedbank. 7 .Over 5.500 local consultants provide IT services. In 2007. South America. accounting for over 4% of TCS’ worldwide revenues. enabling TCS to serve its South African and SubSaharan customers better. Standard Bank. TCS Iberoamerica has expanded operations to 14 countries. and maintains a BPO Center in Chile and Ecuador. We also participate in the incubation of South African IT talent and help build IT delivery capabilities by training and transferring our globally-competitive IT processes and methodologies to local firms and citizens with a strong focus on empowerment of previously disadvantaged people . business solutions and outsourcing to over 150 regional and global clients across 14 countries in Mexico. STRATE. Its growth in this region is largely Organic. TCS now counts many leading South African business houses and government organizations as its clients. University of the Witwatersrand. Barclays and others. TCS South Africa One of the first Indian IT services and consulting companies to enter South Africa. the highest quality standard for the industry. TCS has created over 5000 direct jobs for local citizens in Latin America. Spain and Portugal. was formed as a subsidiary of TCS Limited.
• In 1981. Chief Executive Officer and Managing Director N. Global Affairs COO COO Regional Heads (APAC. Europe) SBU heads CFO Chief Marketing Officer Chief People Officer Country Heads 1. Leadership Team • • • • S. Tata Steel (then TISCO). F C Kohli was its first General Manager. Chandrasekaran. one of the first business computer manufacturers.3. the Inter-Branch Reconciliation System (IBRS) for the Central bank of India • 1970s. TCS set up India's first software research and development centre 8 . It later bagged the country's first software project. Executive Director and Head.3.1. Chief Operating Officer and Executive Director S. • One of TCS' first assignments was to provide punch card services to a sister concern. Mahalingam. North America. TCS started exporting its services.4 Evolution of TCS • Tata Consultancy Services was established in the year 1968.1 Organizational Structure At TOP Level CEO CEO Corporate Head . Global Corporate Affairs 1. Chief Financial Officer and Executive Director Phiroz A Vandrevala. Ramadorai. TCS's first international order came from Burroughs.
1st S. 1.000 1. 9 . of Employee 5.000 47. • Another significant change that TCS is going to witness is Change in Guard October 2009 where N.Revenue $100 Mn $1 Bn $2 Bn $5 Bn $6 Bn Year 1991-92 2002-03 2004-05 2007-08 2008-09 No. twice TCS has seen rezig in top brass. Hiring More local talent It is taking both M & A route and organic growth route to make it big globally.1 Why TCS is a MNC? • • • 142 offices in 42 countries Workforce consists of nationals from more than 60 countries It has distribution and delivery centers in most of these 42 countries. 1.000 1.4. Netherlands to cater the need of local customer.500 24. Brazil .4.43. Also acquired many foreign cos to expand its presence in various locations.10. 1. Mexico. he put TCS in growth path.3 Organizational change • In last 5 year. Ramadorai has been appointed to lead the TCS in 2004.chandrasekhran would be replaced as CEO of the company and Current CEO will be elevated to the post of executive vice-chairman. Australia.000 • In 2004. TCS became a publicly listed company. China. TCS has established several subsidiaries in foreign lands like Thailand. Due to his sharp acumen. In this period TCS has evolved from a 2 billion to a 6 bllion dollar co.2 TCS’s Global Route • • • • In last 5 years.4.
10 . TCS is also not immune to it. 1. To maintain its own operating margins high. But. it has been acting as a alliance for its clients to help them combat recession by means of price negotiation. this phase of TCS under new leadership will script a new chapter in the success story of Indian IT companies. TCS business is largely export centric and it is into IT service business. It has taken several measures to cut its operational cost and to remain competitive in these difficult times.1 Impact of Recession • • • • • As we know. unlike previous years TCS posted a flat growth in the financial year 2008-2009 and the outlook has been the same for next fiscal also. TCS has taken many cost cutting measures in order to serve customer in a better way in this uncertain economic condition. • • • • • • Being hit hardly by global recession. Moreover. during recession the IT export has fallen significantly as the customer are too concerned and judicious about their IT spending.5.5. the IT and ITES sector has been severely affected by this downturn. So. As a result. TCS has stopped hiring for time being and largely banking on employee redeployment. Finalizing a deal has become a time consuming process which has put TCS into uncertain business environment.2 TCS response to the recession • This recession has presented a new opportunity for TCS to venture into new geography in order to reduce its dependence on USA and EU market from where it derives around 80% of revenue.• This change of guard is likely to put TCS into fortune 500 list by 2012-2013 with a revenue of around $ 11 bn . It is also looking for possible target for M & A to achieve inorganic growth and also to increase its people-process capabilities. TCS has a adopted a flexible approach of shifting the onshore tasks to offshore in order to offer client a better deal at a low cost. 1.
6 SWOT analysis of TCS 11 .1.
___________________________________________ Chapter 2 COMPANY’S STRATEGY & FACTOR ANALYSIS ___________________________________________ 12 .
1 TCS Strategy TCS’s strategy is based on three pillars. leverage all our assets. China or Chile.1. through their homogeneity in terms of quality. "high quality of service delivery".1. The Company became the first organization in the world to be certified enterprise wide for ISO 9001-2000. and above all. ISO 27001:2005 and ISO 20000:2005 in January 2007. The value being generated by these acquisitions has been significant and so far we have seen only the beginning of synergistic revenue opportunities. skills as well as look-and-feel. These are the • • • Global Network Delivery Model Strategic Acquisitions Integrated Full Services Play 2. as we stay focused on continuous improvement of security. 13 . The GNDM™ enables our delivery centres to collaborate on projects. work on a ‘follow-the-sun model’ if necessary. Many of the large value deals the Company has been able to win can be attributed to these acquisitions. quality and processes in an industry where technology changes occur 2.2. Our customers can continue to experience the certainty of frequently. give customers the same experience of certainty. GNDM™ is much more than having an India-centric delivery model with near-shore centres and is not about setting up Offshore Development Centres (ODC) in different geographies. We believe that many of the acquisitions we have made in the last couple of years have become force multipliers for the Company in terms of both revenue growth and improved capabilities.2 Strategic Acquisitions A key driver for growth has been the Company's strategic acquisitions for creating new capabilities that would drive higher levels of synergistic growth. irrespective of whether they work with us in Chennai.1 Global Network Delivery Model The Global Network Delivery Model™ (GNDM™) is a truly global network.
all using our GNDM™. • • • • • Instead of going for large aquisitations. Moreover. In this deal TCS will be offering the bank IT Services. To achieve its target of being among Top 10 IT service providers globally by 2010. TCS's process capabilities and range of services provide a compelling value proposition for its existing customers with over 96.8% of our business this year coming from repeat customers. One recent example of all our services at work as part of an Integrated Full-Services Play is the $140m banking/financial services deal from Bank of Pichincha in Ecuador.3 Integrated Full-Services Play TCS is increasing its focus on expanding the breadth of its service offerings and capabilities to become a one-stop service provider. acquire companies who would be valued around 1/10th of its revenue. these offerings are also witnessing traction among more than the 100 new customers added during the year and give the Company significant opportunities to cross-sell different solutions to customers. This entire business initiative was consulting led with the objective of bringing about significant improvement in the cost-income ratio of the bank. Japan and more focus on emerging economies Focus on domestic market so that it can contribute around 8% to revenue currently from 2% To strengthen its consulting business in order to contribute around 12% to top-line from current contribution of 5%. It will depend on TCS's Santiago centre for BPO best practices and process management. Brazil. 14 .1. TCS has devised a 5 pronged approach. Target for more multimillion-multi year deal which would ensure constant flow of revenue in future. Infrastructure Services and BPO .2. This deal uses FNS/BANCS the core banking engine from TCS. The Bank of Pichincha will depend on TCS's FNS centre in Sydney and India Development centres for any product customization. Any other custom development will be done at TCS’s centre in Uruguay. China. Diversify and strengthen its geographical presence in places like middle-east. The power of the GNDM™ as well as our strategic acquisitions is illustrated through our integrated full-services play that now captures the entire value chain of IT — from consulting to products and solutions and from implementation to support.
it is imperative for a company to set up a local delivery unit for foreign clients. Thus. Buying power of consumer:. WIPRO & Infosys are the two main competitors in this space for TCS who are competing with TCS in a big way in all aspects. So. TCS has tried to reduce it dependence on US market which contributes around 52% of its revenue and to get more and more business from emerging countries even if at a lower margin. TCS follows onsite-offshore business model.The competition in Indian IT industry has got more intense over the last decade.New service providers like IBM global services. 3. TCS has set up a number of local delivery centers in these geographies. ACCENTURE. the current downturn has taken a hit on TCS growth plan. 2. to make it a true MNC. In order to cater to the need of this lucrative market better. As.Indian IT service is largely driven by customers. it is also putting its pressure on TCS to compete with to maintain growth in long term. 2.However. excellence. it is recently focusing on acquiring more number of new customers from various geographies.3. CAP Gemini consulting are expanding very fast in India. Competitive rivalry:. the following 3 factors out of 5 are largely responsible.1 CORE Values of TCS • • • Integrity. Increasing customer centric approach has made the TCS a global player to serve its customer in a more effective way. HP.2 Porter’s Model Analysis In context of TCS. leading change.1 software exporter is immense on TCS. The pressure to remain no. Threat of new entrant:. So. 15 . Two major markets for TCS are USA & EU which contributes around 80% of TCS revenue. to maintain its leadership TCS expansion into new territory is a natural choice for the company. 2. 1. So. in recent times. Indian IT companies have moved form being a simple service provider to a role partner.
Gifts and donations A Tata company and its employees shall neither receive nor offer or make directly or indirectly any illegal payments. marital status. A Tata company in the course of its business activities shall respect the culture customs and traditions of each country and region in which it operates. to the extent possible and affordable and shall be in accordance with the laws of the land. Employees of a Tata company shall be treated with dignity and in accordance with the Tata policy of maintaining a work environment free of all forms of harassment. remunerations. Some important aspects of TATA code of conduct are National interest The Tata Group is committed to benefit the economic development of the countries in which it operates. Equal opportunities employer A Tata company shall provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race. age.• • respect for the individual. localities and communities in which it operates. religion. Each of TCS employees irrespective of their nationalities and geographies when 1st join the company go through a orientation program which aims to imbibe TATA code of conduct in them. while encouraging the adoption of international best practices. sexual orientation. as well as compliance with all local labour laws. gender. gifts or comparable benfits that are intended or perceived to be uncompetitive favor for the conduct of its business. ancestry. color. ethnic origin or disability. A Tata company’s management practices and business conduct shall benefit the country. Human resource policies shall promote diversity and equality in the workplace. caste. fostering an environment of learning and sharing Besides. 16 . nationality. verbal or psychological. TCS business operation is largely driven by TATA code of conduct. whether physical.
In addition. TCS has institutionalized open-house sessions and engagement programs in which associates at all levels meet and discuss various work issues. which is in place across the entire Tata Group. • Diversity at work: TCS is an equal-opportunity employer and TCSers come from many nationalities and speak many languages.2 Culture At TCS. integrity and honesty. its associates have a knack of working hard — and partying harder. Not only its offices have the best infrastructure and technology. The code is a means of upholding and strengthening the trust reposed on us by its various stakeholders. TCSers are found singing carols at Christmas and doing the dandiya dance at Navrathri with equal enthusiasm. TCSers can 17 .Ethical conduct Every employee of a Tata company including full-time directors and chief-executives shall exhibit culturally appropriate deportment in the countries they operate in and deal on behalf of the company with complete professionalism. TCS employees take pride in adhering to the Tata 'code of conduct'. And. Life at TCS is a stimulating and exciting experience.. Energetic and full of enthusiasm. since it believes in celebrating everything under the sun. • Open door Policy: The senior colleagues at TCS follow an open-door policy in which any associate can approach the CEO and senior management with work-related problems. and a collaborative culture that's based on teamwork.3. TCSers enjoy their day (and night) at work. 2. Every employee of a Tata company shall preserve human rights of every individual and community and shall strive to honour committements.Communication is a big word at TCS and employees regularly takes part in webcasts and chat session through which important corporate issues or decisions on real-time basis are shared with associates worldwide. be it customers or the wider society. one can see an energetic and open workplace environment. Pulling together is a central tenet of its work ethic.
The queries and discussions are formally recorded and followed up.4 Political Environment Political stability is a huge factor in the growth story of Indian IT sector. Obama’s anti outsourcing policy has compelled USA companies not to give more business to India which eventually has hit TCS badly. to deal with the political environment of host country is a huge upcoming challenge for TCS.5 Legal Environment Experience:. Many a times such events are facilitated by the company itself. with Maitree or with just a bunch of other like-minded TCSers. getting a H1B visa has become more stringent. as well as understanding real-life issues that colleagues face at work. nature camps. has helped the companies like TCS to grow by leaps and bounds. picnics or just bus rides whenever they get chance.In march 2009. it has brought bad news for TCS. With the change of guard in USA. a stable political environment means increased customer confidence which eventually brings business to the domestic firms. The tax holidays was scheduled to be ended in 2008. • Fun @ Workplace: TCSers are habituated to do the regular outing.also take part in one-on-one sessions where they can interact privately with senior management. They often go on treks. Thus. has offered tax holidays to IT sector. These sessions are helpful in providing mentorship. decided to extend the same till 2012. be it with their project teams. Thus TCS has been benefited largely. However. but amid on going global slowdown Indian govt. From the onset Indian govt. 2. 2. Further it is extended till 2012. As Indian IT sector is driven by outsourcing. if political scenario of USA is considered then. Earlier. This kind of favorable action from govt. TCS was one of the main player who has utilized H1B visa in its favor to a great extent to serve its customers at near shore.Over 100 workers of UK-based insurance firm Legal & General (L&G) were up in arms against the TCS management alleging that the company is 18 .
During the past two years. For example. Russia. TCS aims to “create a global organisation. hiring rules and transfer of retirement benefits could also create problems. 19 . TCS brings people from these countries to India for special training. China and Hungary. Latin America and Brazil. So. Such incidents have shown TCS new set of ground realities of running a global operation. TCS has offices in Brazil. India and China (Bric nations) and. Besides cultural practices. TCS prefers to hire natives as HR managers as it needs people who are familiar with rules of the land and speak the native language. 2. which is typically is typically Indian. It has also made changes in intranet and common mailing system to avoid confusion related to tax policies and has included common holidays of different countries. which follows the same ethics and values everywhere”.replacing them with Indian professionals at lower wages. TCS has been focusing on inorganic growth and is actively looking at setting up offices in emerging destinations in East Europe and Latin American countries.Training programmes in India will help expats familiarize with the company’s culture. In some countries like UK stringent labor laws are prevalent and deviation from such can bring a great legal hassle to the companies like TCS which generally works on low-cost labor model. signed last year. “Employee management is a crucial factor especially in East Europe as the law does not insist on a notice period. as a consequence. Employees are free to leave their jobs. Tech workers in the UK and US very often has launched public outcry against Indian IT companies and tries to pressurize the foreign cos. posing challenges on account of multi-cultural environment and language barriers. Hence. after India’s biggest software exporter started executing a five year managed services agreement with the insurer.6 Socio-Cultural Factors & TCS New geographies attracting IT major TCS are East Europe. TCS had to change its travel documents to accommodate ‘partner’ instead of wife. In response to such barrier.
the company has also started running similar programmes at all its major offices and development centres to impart language and cultural skills to the existing employees. The move is not limited to employees just learning a language but also making them conversant with the culture and etiquettes of at least one foreign country. in a bid to become a global player in the knowledge sector. Moreover. TCS is training all its employees to speak and understand at least one foreign language. The company uses several methods (besides classroom and online learning) such as role plays.Moreover. 20 . TCS has created a special foreign language learning centre at its Thiruvananthapuram facility where all newly recruited employees are sent for initial orientation and training before being inducted into the company. All the new employees are required to undertake a course in one language of their choice. games and quizzes to invoke interest in foreign cultures among the employees.
___________________________________________ Chapter 3 RESOURCE MANAGEMENT ___________________________________________ 21 .
There are 4 development centers and 4 centers of excellence that create winning solutions for American customers. is the solution.000 TCS associates. The facility will serve as the primary software development and delivery center for North American customers. which allows flexibility and empowerment. The HR structure. most of who will be locally hired from the region and its universities. The TCS-HR group operates with technical experts to create a synergy which is enviable. in a nut shell. Some of the biggest clients of TCS are Citi Group. 22 . The new facility includes 200. Figure 1 illustrates the role of HR. TCS opened its largest North America Delivery Center called TCS Seven Hills Park. USA market is the largest contributor to the TCS’s topline. Earlier a large chunk of employees working in TCS America are Indian nationals who were going to near shore on work-permit Visas. Located in Milford. However. a suburb of Cincinnati. So. which evidently is that of a facilitator. To manage all the functions for over 140000 employees is a Herculean task but the smoothness of operations is intriguing. So. Today. the investment of such measure clearly demonstrates importance of USA in TCS future plan. TCS has 23 offices in U. the campus will also showcase TCS Innovation Labs. Ohio. TCS in America wants to be a long-term player being growth driver fro its world-wide operation. and more than 10. 3. Hence. So whether it is recruitment or even career development. the changed economic scenario has forced TCS to take a more localized approach to serve the customers from USA.3. In addition. GE .2 HR @ TCS TCS has developed an unbreakable bond with sound HR practices in an environment that defies traditional roles and responsibilities.S. TCS is striving hard to increase local base in USA.000 consultants delivering real business results to customers.1 Preamble (USA-Specific) TCS was the first Indian technology firm to set up operations in New York City in 1979. As a result. Microsoft which are based in USA. 52 percent of the TCS revenue comes from USA alone. HR is the catalyst which initiates and institutionalizes processes.000 square feet of office space and can accommodate up to 1. the facility sits on 220 wooded acres in March 2008 with a investment of $19 million. customer network operations centers and briefing centers. to serve the customer better.
The major resource for any company is Human. And to management that company should perform basic function as given below: • • • • • Recruitment Policy and Process Training and Development Compensation and Salary Structure Performance Management Talent Retention 23 .
Argentina Ankur Prakash Cezar Castelli Mario Tucci Indian National Uruguayan National He is heading 850 professionals who are based at a Global Delivery Center and regional training center in Montevideo (Uruguay).Argentina AS Lakshmi Narayanan Carol Wilson Mario Tucci He was earlier head of TCS UK In the rank of vice-president Locally hired • TCS staffing model is unique in its way. Europe. all operations are headed by its Home country nationals. Latin America operation is a headed by a 3rd country national.2.1 Staffing Model Country / Business Unit / Region Mexico Brazil Uruguay. In 24 . • Other than Latin America operation. North America.3. as well as an extension center in Buenos Aires (Argentina) Headed By Comments APAC Latin America Be-ne-laux Australia Girija Pande Gabriel Rozman Shankar Narayanan Varun Kapur Indian National Native to South America Indian National His Previous predecessors were Mr. Latin America. R Ravishankar (Indian) and Mr. However. it is a mixture of both Ethnocentric and polycentric model. Rick Marmur (an Australian) Europe Global Hi-tech Business Unit Uruguay. APAC. TCS has divided whole of its operation in 5 geographies like India. Africa-middle east.
25 .most of the English speaking nations. • . TCS intends to manage a ratio of (80:20) among local employees and expatriate in its overseas location. Currently 30% of the workforce working in TCS Japan is locally hired. Besides. in emerging economies like china and Japan. the country manager is from its home country. it is focusing on recruiting local people as to head the operation where it is facing stiff challenges in terms of customer acquisition due to huge cultural barrier and lack of local knowledge. Argentina etc. Its Australia operation also during 2006-2008 was headed by a Host Country National • • However all HR positions are taken by host country nationals.
3.2.2 Recruitment Process (For Entry level position) • TCS goes for campus placement in various Universities in USA & also holds career fair at those places. 26 .
• TCS on campus recruitment policy is meant for hiring resources for both technical as well as managerial role. USA etc.• Else lateral hiring is done on demand basis. it is gradually starting on-campus recruitment process in places like UK. TCS has adopted a indirect recruitment process via its web-site where one can submits his resume. • In TCS. it is evident that a large pool of TCS employee base is fresh graduates. Australia. Fresher to lateral employee ratio stands at 60:40. However. job offer verification joining • In most of the countries where it is operating. • However. So. 27 . That is why TCS has a robust training and development program worldwide to leverage the potential of fresh recruits. TCS looks for those candidates who have excellent academic record throughout means having at least 65% of mark or equivalent CGPA at all important level of academic career. Jobs posted on website apply online application screening called upon for interview May be telephonic or face2face interview or both If found eligible.
a strong talent localisation initiative was being driven by Ramadorai.000 people in Latin America. • In last financial year. Concurrently. 2008).3 Recruitment Objective (By the help of Live Cases) Case1 28 .• As at March 31. 2009 women constituted 30% of the Company’s workforce (28% as at March 31. however in TCS USA percentage of women workforce stands at around 35%. including 1.479 non-Indian nationals and TCS is focused on adding to its global knowledge workforce and integrating these professionals into its workforce. multi-cultural global organisation. as the number of non-Indian employees rapidly increased to stand at over 10.2. creating a multinational.000 at the end of 2008-09. There were net additions during the year of 1.200 people in China and over 6. 3. marginally higher than the global proportion.
attitude is the most important aspect that must be considered in the selecting a candidate. Also as he/she is also required to carry out complex technical and administrative works. The main function at this level is to coordinate the activities performed by the technical team. motivating the personals in the team etc. providing technical and personal assistance to the team when required. acting as a bridge between the higher management and his team. Apart from these.Analysis : Technical lead is a mid management job that requires to lead a team of technical expert and software developers. assessment regarding the quality of work. skill is also an important criterion in the selection process. the candidate must have area/ domain knowledge to succeed in his role and to carry out his responsibilities effectively. As it is basically a leadership role. So for this designation: Attitude > Skills > knowledge Case2 29 .
3. The company selecting candidates for these positions will basically look for some basic level of area/domain knowledge relating to software coding and testing so that he can start doing his basic work and start contributing for the organisation after getting the on job training.Analysis Engineer trainee is an entry level job the where the candidate is raw. This is important because as a new entrant in the organisation. acquiring skills are important as the time passes and he gains experience s that his contribution increases and he takes up more responsibility in the organisation.3 Compensation 3. So. corporate EVA. and also individual performance EVA. 30 . Lastly. The variable part of the salary was arrived after considering business unit EVA. With the implementation of Economic Value Added (EVA)-based compensation. for this role: Knowledge > Attitude > Skills 3. Second most important aspect for this role is good attitude of the candidate. fresh and inexperienced.1 Compensation Management TCS' compensation management system was based on the EVA model. the salary of employees comprised of two parts – fixed and variable. he should have the right kind of attitude to gel with his co workers and work in a team. The variable component in the salary structure of an individual also depends on the rating that he receives on a scale of 1-5 (D-A). EVA is calculated as net operating profit after taxes minus a charge of the opportunity cost of the capital invested.
1 million] • Median Bonus by Years Experience Employer: Tata Consultancy Services. • “City allowance” The compensation package varies slightly depending upon the place of posting. [Note : Salary of business manager is around $ 0. Ltd. Ltd.3. 31 . For example: the person posted at New York is entitled to get around $ 500 per month more than the person posted in a county like Horsham.2 Compensation Structure • Median Salary by Job Employer: Tata Consultancy Services.3.
medical facilities. cultural events). Helpdesk facilities. 32 . During this. retirement benefits. annually an employee gets 10 days of paid leave for visiting his own country once a year. overseas allowances. holiday homes. • Welfare benefits for full-time employees include subsidized Housing and other loans. on premise bank extension counters/ATMs. • Besides. treks. flexible working hours. Ltd. transportation. • Else. then he is entitled to get a total 20 days of paid holiday for his marriage if marriage is conducted at the home country of the employee. the travel expense is reimbursed by TCS whereas the Spouse’s expenses are burn by the employee himself. magazine subscriptions. overseas salary in USA goes up generally by between 3% to 5% where as it is 10-15% at the parent country. • In a normal year. if the employee is unmarried. assistance in school admissions. overseas travel reimbursement for paper presentations and maternity leave for adoption. canteen facilities.• Average Vacation Weeks by Benefit/Perk Employer: Tata Consultancy Services. family events (picnic.
• In the event of outbreak of an epidemic or any other local issues which are important . Traditionally INFOSYS.1 TCS . during the SARS and bird flu outbreaks in Asia). email is also used as a communication medium to send dos and don’ts messages.2 Prior to Overseas Assignment • • The person concerned is given cross-cultural training which includes culture. a TCS employee gets 70 per cent of salary as fixed component and the rest as variable & increases towards top management.g. Ultimatix is the chosen mode of communication to disseminate knowledge and dispel myths (e. which every associate going on deputation outside India needs to sign this. Cape Gemini. The latter. 3. whilst on the deputation. in turn.3 Overseas Assignment (USA) 3. WIPRO. IBM. one gets an overall idea about that country. In case of any doubts. • Also one has to serve 6 months after coming back to India in the company. in India or overseas. HCL are referred as competetitor of TCS in the agreement. social etiquettes.3. language training etc. • There is a clause in the agreement that says one can not accept any offer or anything from a client / competetitor of TCS.Overseas Deputation Agreement • For the overseas deputation TCS does have a Master Overseas Deputation Agreement / MODA in short.3. currency usage of host country. Browse Ultimatix : TCS internal web-portal “Ultimatix” which is a employee interaction platform also assists as a great tool in order to prepare someone for foreign assignment. ACCENTURE.3. By going through this. The companyrelated variable is paid in advance each quarter. 3.• Salary Structure Typically.3.3. is split into one part linked to individual performance and the other to company performance. the home country employee can post its queries in “ultimatix” and many TCSers come forward to address the queries put forward. HP. 33 . Via “ultimatix” employees share their own experience in a foreign land and also give necessary things to know before landing in that place.
If the person concerned is married. a fraternity comprising TCSers’ spouses. the initiates the process of getting the “Dependent VISA” for the spouse of the person concerned. be it improving the environment or taking care of the less privileged. If some employee goes for an overseas assignment to USA from India for a long term ( > 6 months) . Primarily. Thus.3. [NOTE: The above monetary contribution varies depending upon the rank of the employee] 34 . it serves as an informationsharing body where useful tidbits about living in a foreign country Questions like Which are the good schools in Minneapolis? Where do you get Indian spices in Stockholm? are shared by TCS employees and their families. Travel insurance etc. was formed with the objective of bringing the large and geographically widespread TCS community under a common umbrella. • Join Maitree : The better half of TCS o Maitree.3 Other Assistance provided by TCS during this Transition • • • • TCS bears all the expenses related to traveling from source to destination for both the employee and his spouse which includes medical insurance. TCS travel dept. • The Visa initiation process is done by the company and TCS bears all the expenses during this process of obtaining the VISA. of the local unit also helps the employees to locate a suitable accommodation nearby. o Maitree also functions as a forum where a wide range of socially relevant activities are conducted.• In ultimatix .3. then the employee is paid the salary of 1 month in advance. there is a section called “ Accomodation” where TCSers make postings about various “accommodation option” available in their locality or nearby. o Maitree has two distinct objectives. his section also helps a off-shore employee to a great extent to discover his/her possible accommodation in foreign land. TCS provides assistance to the employee to obtain a Driving License Locally & extends monetary help to the employee to acquire a vehicle for commutation. 3.
Winning organisations need to convert today’s challenges into Tomorrow’s opportunities. One aspect of this is the culture of learning throughout an employee’s development lifecycle and TCS invests around 6% of its profits in L&D. Employee performance is closely aligned to Organisational performance.500 professionals were in sourced as a result of the Acquisition of Citigroup’s captive BPO in India. through in sourcing from customers and through Acquisitions.000 campus graduates and Over 12. TCS spends around 6% of its revenue in training and developement 3.3. at Trivandrum. New e-learning modules have been launched In Portuguese.000 World-class professionals and with the highest retention. was established in 35 . In the year under review. TCS remains the largest private employer in Indian industry with over 143. TCS continued to invest in recruitment.4. It is this belief that fuels TCS’ Commitment to invest in building people competencies and ensure human capital development on an unparalleled scale.000 professionals from 67 nationalities. Learning and development of its people despite short-term Business pressures. Mandarin and Spanish to help employees in Latin America and China to develop their own competencies.000 TCSers gained additional technology Certifications. This requires employees to contribute more aggressively and enhance performance Levels on a continuous basis.000 Professionals. TCS has raised the individual Performance bar in the current environment to improve Employee efficiency and productivity. Our Initial Learning Programme (ILP) curriculum has been revised in this context to Train fresher’s across multiple technologies and platforms TCS also continues to expand its web-based learning platform to Benefit its diverse workforce of over 10.4 Training and Development As organisations continue to operate in and compete in a Dynamic global scenario where unpredictability is the norm. Over 1. Around 23. especially for colleagues who have come into the Company. India. The L&D centre.6 million learning days have been invested in developing Additional competencies in 2008-09. The Company integrated over 48. A New Integration portal has been launched.1 Learning and Development – Trivandrum TCS recognises that investing in its people is a key to the sustainability of its delivery model by generating employee satisfaction and minimising the attrition rate. including over 22. TCS believes that creating talent readiness will Drive agility in learning and development. ethos and culture. This is designed to Familiarise and educate people on the Tata Group’s values.
All full-time employees of TCS. receive half-yearly career development reviews. a library. and about 300 personal computers connected to servers. To ensure appropriate client site work environment. our work contract provides a baseline. 3. discussion rooms. Some channels of Employee Engagement in TCS are: Speak Up: Speak Up is a platform for employees to discuss pertinent matters with the Company’s seniors and to bring themselves closer to the Company and its management. receive quarterly reviews. employees may also receive formal projectend reviews. Proactive Employee Engagement Programme (PEEP). including all support groups. and exit interviews are some other mechanisms to solicit feedback from employees. 36 . Ultimatix.5 Employee Engagement Employee inputs are solicited through the annual survey called PULSE.1998 to deliver its training requirements. At the end of every assignment. grievance mechanisms. conducted through the Company’s digital portal. Cross-Functional Teams (CFTs) of local Admin. HR and employees are deployed for seeking the feedback. It has18 classrooms. in the first year of their employment. an auditorium. a conference hall. Opinion polls. All new employees. Process Improvement Proposals (PIPs). and HR regularly liaisons with client support groups. open-house sessions.
Propel: Propel provides a forum to discuss issues and ideas. parties and get-togethers with fun and games. opinions. to promote the ideas and to resolve issues at inception level itself. which finally conclude in action. dialogue. discovery of new ideas. Grievance Redressal System: Employee grievances are logged through a centralised grievance redressal system. ascertain shortcomings. Fun@Work Committees are formed across accounts which organise. Ethics Counsellors at regional and corporate levels also play a key role in handling the sensitive grievances. 37 . interacting and problem solving. Through these sessions. The steady rise in the Associate Satisfaction Index (through PULSE) is an indication of TCS culture and care for its associates.thus developing the channels of communication between employees and the Company’s top executives. Branch Grievance Coordinators and the Corporate Grievance Process Lead perform weekly and monthly reviews to ensure quality grievance resolution by the Human Resources Team within the specified timeframe. which create high levels of stress. aspirations and satisfaction. PEEP – Mentoring: PEEP is a mentoring initiative in which employees connect one-onone with TCS’s senior management. Propel covers all employees across TCS. Through PULSE. undertaken every year to measure and understand the TCS Associate's attitude. TCS attempts to find out opportunities for improvement. motivation. the ‘Best PIP’ award is given annually. PULSE: PULSE is the company's annual Associate Satisfaction Survey. Camps and confluences are conducted for problem solving. design appropriate plans. the employees are provided a platform for learning. invite suggestions. picnics. PIPs: Employees can log PIPs through a link in Ultimatix. Stress Management: The IT industry is known for its high-pressure work atmosphere and long working hours. To encourage employee participation in the endeavour. TCS encourages its employees to de-stress by participating in Fun@Work which is a term used across TCS to refer to any activity or programs that is conducted during work. reflection and fun. Annual picnics take place in each region that gives TCSers spread across a region to come together and celebrate with their families and colleagues.
The customer perspective looks at the differentiating value proposition offered by the employee. “If the poor performer continues getting low scores then the exit option may be considered”. Based on their individual achievements.3. Appraisals are based on Balanced Scorecard. employees are rated on a scale of one to five (five = “superstar”). TCS shuffles its employees between projects every 18 months or so. which tracks the achievement of employees on the basis of targets at four levels: financial customer internal learning The financial perspective quantifies the employee’s contribution in terms of revenue growth. If employees work for more than two years on the same project. typically either their performance dips or they leave the organization. The learning and growth are self-explanatory.1 Performance Appraisal TCS conducts appraisals twice a year. • • At the end of the year At the end of a project. The weight given to each attribute is based on the function the employee performs.5. At the heart of an employee's satisfaction lies the fact that his performance is being appreciated and recognized. improved asset utilization and so on. TCS's performance management system has metamorphosed into 38 . The internal perspective refers to the employee’s contribution in creating and sustaining value. To avoid that. cost reduction. the warning flags go up. Employee utilization rate in TCS is about 76% that is highest in the industry. Over the years TCS has found the pattern that leads to the maximum decline in performance — boredom. “Performance drops if motivation drops”. If employees get a low rating (less than two) in two consecutive appraisals.
5. This low attrition rate has been achieved by continuously investing in learning and development programs for employees. 3. What deserves special mention is the active participation of the senior management in the determination of guidelines for the performance appraisal process. Detroit & support of its Hope lodge initiatives for cancer survivors.6%) is the lowest in the industry. empowering employees at all levels as well as a well structured reward and recognition mechanism. The American cancer society has commended TCS for its active participation in fund-raising walks in Minneapolis. The process ensure buy in of the employees since the guidelines for the rating system and its conversion into money terms is not unilaterally decided by HR but is a consensus of a cross functional team with representation from all levels. competitive compensation.6 Community Relations (Outside India) • TCS continues to carry forward its corporate sustainability in USA. 3.2Talent retention: The attrition rate of 11.one that emphasizes objectivity and a system that mandates performance evaluation against predetermined criteria.4% in fiscal 2009 (previous year 12. 39 . creating a compelling work environment.
00 for creating educational opportunities for children in Appalachian counties of Ohio.• • TCS has committed a grant of $ 75. TCS has trained them in social skill and business skill besides organizing a football training tour to Kolkata and Jamshedpur. TCS Uruguay has supported the ‘Endeavour’ program since 2005 which is a training program to groom local entrepreneurs from all over the latin America. TCS regularly partners on social causes along with some of its clients in fundraising. In china. as also the Down Syndrome Association in Singapore and Australia. TCS has continued its support of the UN world food program’s walk of life across Europe. In UK. TCS has been active with the HOOPE school project in Beijing which ahs more than 200 students from less privileged families. TCS supports the Stepney football club in East London for less privileged youth. • • • 40 .
___________________________________________ BIBLIOGRAPHY ___________________________________________ 41 .
Bibliography 1. http://www. http://www. http://www./Salary/sho w_all 12./Salary * All sites visited on 14 August 2009 42 .html 3.blogspot.com/news_events/press_releases/Pages/TataConsultancyServicesTCSannounces expansionofitsGlobalNetworkDeliveryModelwithanewcenterinMexico.com/research/US/Employer=Tata_Consultancy_Services.payscale.php?newsid=62949&from=0 11.com/know/hr/eldos-tcs-2.blogspot. http://www.com/2006/12/tcs-culture-and-training.com/2008/12/18/indias-tata-consultancy-tcs-eyes-china-market-to-hire-3500staff/ 9.expressindia.payscale.com/research/UK/Employer=Tata_Consultancy_Services.com/news/messages. http://economictimes.indiatimes. http://www.coolavenues.bpotimes. http://hotviews.html 6.yuvajobs. http://infotech.cms 4. http://kolkatablogs.cms 5.com/efytimes/fullnews.asp?edid=30159&magid=11 8.com/company/tcs/index. http://www.com/articleshow/msid-153973. http://trendsniff._Ltd.com/2009/01/tcs-brings-touch-of-india-to-brazil.php 10.com/Infotech/ITeS/UK-legal-firm-LG-staffs-rail-againstTCS/articleshow/4223180.prtpage-1. http://www._Ltd.aspx 7.asp 2.indiatimes.tcs.