REALIGNMENT AND RESTRUCTURING AT TCS

As the market decides the strategy to be adopted, structure decides the form, technology decides capacity and synergy in output comes from the culture, an organizational design is needed to carry all these together in a holistic manner.

Alignment and Attunement: The four voices: voices of the employee, customer, technology and wealth need to be attuned. Hence factors like resource allocation, team-work, learning opportunities for individuals and teams, factors that would increase productivity need to be paid emphasis.

Goal Alignment & Balanced Scorecard Importance to goal alignment was now understood & various means to institutionalize goal-oriented performance management (from the institution to individual levels ) were considered. The concept of the Personal Score Card was introduced wherein the goals ,tasks of each individual was assigned. The Balanced Scorecard approach was proposed which talked about : Shareholder (Financial Goals ), Technology (Quality, Cost), Customer ( Customer Satisfaction), Employee ( Learning & Development). Regular online workflow reviews were carried out to track individual performance against stated goals. On the basis of these the rewards and incentives were designed. Focused Career Planning and the Mentoring process was also put in place for the real talent in the organization.

Account Excellence Programme (AEP) This dealt with 7 key categories eg leadership, Strategic Planning, Customer and market focus,

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Measurement, Analysis and Knowledge Management, HR Focus, Process Management and Business Results. The AEP has mainly talked about quality, service, cost and cycle time by benchmarking: customer requirements

Darpan The presence or lack of communication or the lack of it became one of the biggest hurdles in employee motivation and managerial decision-making during the aggressive expansion strategy. In response to this Darpan, was initiated (objective to Reflect and Improve). A Questionnaire was prepared to collect the preliminary data which included capturing associate feedback across 5 categories :Career &Job, Communication, Culture & Pride, Leadership: and Supervisor.

Outcomes from Darpan       Increase in the Associate Satisfaction Index (ASI) Increase in Customer Satisfaction Index (CSI). Teams were now able to associate themselves with the bigger picture of an organization ie their contributions that added value to the customers and the organization. Lower attrition A transparent culture was encouraged. High focus on Corporate Social Responsibility (CSR)

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SERVICES
 BUSINESS INTELLIGENCE & PERFORMANCE MANAGEMENT The business environment today is more dynamic than ever, with mergers and acquisitions, consolidation and regulatory changes. To succeed, an enterprise needs to develop an ability to sense these changes, and thus respond to them quickly and smartly. TCS' Business Intelligence and Performance Management solution helps enterprises in fulfilling the aspirations of being agile, adaptable and efficient. TCS SOLAR Framework is a Service-Oriented Architecture (SOA) framework of integration and information management services. The framework helps coalesce business intelligence, business process management, enterprise data management, integration and knowledge management/enterprise content management initiatives, thus driving down the cost of IT and providing the agility to address changing business and regulatory requirements. TCS SOLAR Framework helps you optimize and monitor business processes on a granular level. This could lead to at least 10% increase in operational efficiencies and up to 90% reduction in cost for adapting to new regulatory compliance requirements. With TCS SOLAR Framework, the enterprise can achieve the following:     Converge business intelligence and knowledge management through real-time integration Quickly re-orient your business processes at a granular level in response to business environment changes Predict and improve the quality of service Have the ability to easily adapt to current and new regulatory needs  BUSINESS PROCESS OUTSOURCING

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Adopting this approach allows them to focus on their core competencies and respond with agility to the ever-changing market and business needs. WHAT TCS PROVIDES  It studies the business processes and identifies how they can provide innovative solutions that will best fit the business needs and address the challenges the client organization may face.      Boosting your bottom line through automation. 4 . Building agility across your organization through strategic initiatives that adapt to accelerating market trends Helping you reach out to clients through innovative go-to-market strategies Reducing time-to-market by creating new go-to-market strategies.As most organizations today value the merit of staying “lean and fit.” they are increasingly looking at outsourcing non-core operations. a strong understanding of industry-specific BPO services and cross-industry solutions is provided with new business processes and innovative models that seamlessly align with the business requirements. At TCS BPO. productivity arbitrage and wage cost arbitrage Leveraging its existing talent pool and industry experience to become part of the client‟s think tank.

The paintings and the displays with mission and vision of the company enhances the employee relatedness with the company. 5 .platform based services transformational outsourcing ORGANIZATION AMBIENCE AND DÉCOR The organization and the office decor in TCS is modern at Noida sector 3 office. RKHS etc. Also TCS has invited proposals from renowned caterers like Sodexho. There are many conference rooms with stare of art facilities. The work stations have a modern look with cubicles in which provide better utilization of space and also add to the look and feel of the place. Canteen area has a big sitting area which can accommodate 100 people as there are no different timings for lunch hours and employees of all designations can go in at same hours. Starting from the reception to the work stations has a modern look.

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gr owth.retaine d earnings.innovati on.global delivery network. TCS serves large and fast-growing organizations who share a common set of objectives:   Increase profitability and efficiency by doing more with less Rapidly and effectively respond to the changing market demands.st rategic marketing.business excellence. thereby improving organizational agility 8 .cash There are certain features that are unique only to TCS that help the organization in creating value.VALUE CREATION MODEL FOR TCS learning satisfaction flexibility teamwork processes .innovation value for investors and employees roi.profitability.expansion.

both figures ranging far higher than industry standards. proximity of location. Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams such as consulting. Be assured of the highest quality of service regardless of the mix of services. global workforce integrated processes multi-tiered infrastructure 9 . clients can choose a sourcing strategy best suited to your most important business considerations. with the help of a unified delivery framework. technologies and locations. Leverage IT as a strategic driver for competitive advantage. IT infrastructure services. With TCS' Global Network Delivery Model™. language capabilities or risk mitigation. IT services. scalable and cost-effective delivery of services and solutions. cost optimization. not just as a business utility  GLOBAL NETWORK DELIVERY MODEL Global Network Delivery Model is the engine that allows TCS to provide reliable.. e. cultural alignment. This time-tested model has helped it to achieve a client satisfaction rating of 89% for meeting quality expectations and an average project budget variation of just 3%.g. etc.

to think through goal setting at TCS with a systems perspective to goal alignment & to explore means of institutionalizing goal-oriented performance management within the organization. the need to create succession plans at all levels and to track and reward high fliers was brought out. performance management. Quality. Delivery dimensions Voice of the Customer – Customer/ Market Goals e. Customer Satisfaction Voice of the Employee – Learning & Development e.g. Towards employee satisfaction and towards ensuring sustained availability of sufficient managerial and leadership talent.g. The process of role alignment was further thought through. Cost. which touched upon the following:        Voice of the Shareholder . with help from expert OD consultants to build the context. A Teach-Train-Transfer workshop on Goal alignment was conducted. Economic Value adds & the ways and means for facilitating goal alignment. a need was felt to re-look at a few organizational processes and systems. The workshop further introduced the concept of the Personal Score Card. Wealth creation Vector of Technology – Technology Goals e. the performance management and appraisal system at TCS. highlighting the need to have a focused Career Planning and Mentoring process. and clearly outlined what would define goals. outputs. GOAL ALIGNMENT & BALANCED SCORECARD: In the interest of better alignment. as for instance.g. as well as the need for assessment and coaching for role transitions.g.Financial Goals e. introducing corporate goals. The Balanced Scorecard approach was proposed. 10 . Employee Satisfaction Identification of talent for higher responsibility was also seen as a key focus area.

11 . PROPELPROPEL was introduced as a revolutionary intervention with the dual objectives of facilitating the exchange of ideas and helping in immediate problem solving. while also encouraging bonding and self-development among and within teams.

THE SYSTEM CALLED ”TCS” Output(tangibles):  Increased revenue  pat(profit after tax)  profitability ServicesApplication development and maintenance  Business intelligence  Enterprise solutions  Assurance engineering  IT infrastructure services  BPO 12 .

procurement. analytics as well as finance and accounting. Output(intangibles)  Extremely satisfied workforce Operational excellence 13 . iON-which is an integrated solution for small and medium integrated markets.TCS Hospital Management and Information Solution Tata Accounts Receivable and Billing System (TARABS) TCS Clin-e2e TCS Silicone Ambulatory ECG Device and Solution TCS Enterprise Integration and Control Environment Solution/ Energy and Utilities TCS Bio-informatics Solution VERICUT .Machine Simulation Software Process clouds-TCS is offering solutions with relation to the cloud paradigm in the human resource management. Consultancy  Asset leveraged solutions  Eco sustainability services  Software products-which contribute almost 36% of the total revenue.        Med Mantra .

adaption and innovation Customer centric Conservation of energy Global network delivery model Research and development HUMAN RESOURCE PROCESSES Talent Acquisition and management Talent diversity Learning and development Leadership development 14 .PROCESSES Technology adoption.

Talent retention is the major challenge faced by TCS. COMPETITION: Increased and aggressive competition is a major concern for TCS. The challenge for TCS is to ensure that the sensitive data is secure. 5. TCS has to beat the growth of the other IT companies. which leads to absence of expertise in domain knowledge. This has also lead to discontent among employees. 2. This legislation has also affected some other states like Missouri. REVENUE PRESSURE: To be the top IT Company in India. The competitive advantage for a service organization is from its employees. ATTRITION: Attrition rate at TCS is at all time high of 16%. TCS is focusing on getting the short term project. 3. Connecticut. A key concern for TCS is competition from existing players as it has generated competition for existing business and created significant pricing pressures. ENVIRONMENT: The problem with outsourcing in countries like United States of America is posing a threat. SECURITY THREATS to sensitive customer and business data. LACK OF DOMAIN KNOWLEDGE: General lack of domain expertise outside the financial services sector is a challenge. 7. This has lead TCS to focus on short term goals. to sustain its revenue and a lesser investment was done to satisfy the long term objective. BARGAINING POWER OF CUSTOMERS: Increased bargaining power of the consumers and shrinking margins is other challenge faced by TCS. Wisconsin and Maryland.CHALLENGES FACED BY TCS The major challenges faced by TCS are: 1. rather than pursuing long term strategy. Employees are moved across domains and skills due. In the recent times a bill has been passed in the state of New Jersey that allows only the citizens or legal non-Americans to be given contracts. Losing its efficient employees to its competitors is major downfall for TCS. 15 . There was pressure from customers even for schedules for faster delivery. 4. 6.

TCS hasn‟t been able to focus on R&D due to the mechanistic structure. The functional structure and the hierarchal structure don‟t support team work. ECONOMIC CONDITIONS: An increasingly uncertain environment in US and European economies is a matter of concern for TCS. product development projects in order to differentiate themselves from competitors such as Cognizant and Accenture that focus on higher value-added work such as consulting. Lack of autonomy and control amongst employees has caused lead to lower levels of intrinsic motivation on the job.8. The structure has been preventing TCS to adapt to the changing environmental needs. The organization design is a source to the challenges TCS faces today. 9. Globally. Lack of cross functional teams at TCS also discourages generation of new ideas. MAINTAINING ITS EXCELLENT PERFORMANCE STANDARDS:One of the major challenges for the Indian information technology industry was to keep up with the competition in the industry. The mechanistic structure at TCS has restricted employees to exhibit their creativity. This had lead to lower satisfaction levels of employees at TCS which in turn has been leading to higher attrition levels. A key concern for TCS is competition from existing players as it has generated competition for existing business and created significant pricing pressures. as a result TCS is still struck with the same kind of work it has been doing. Mechanistic structure has made the organization rigid and is discouraging TCS to foray into taking up high value projects. 16 . firms such as EDS have positioned themselves as capable of undertaking large.

STRUCTURE: The structure of the organization determines the placement of power and authority in the organization. It sets out the basic direction of the company. TCS follows a cost leader strategy. TCS has a mechanistic structure wherein the there is a formal 17 . This is the reason TCS doesn‟t lay much importance to R&D. The focus for TCS is to attain competitive advantage is to reduce the per employee cost and attain economies of scale.STAR MODEL OF ORGANIZATION DESIGN FRAMEWORK DESIGN ELEMENTS STRATEGY: The Company‟s strategy specifies the goals and objectives to be achieved as well as the values and missions to be pursued.

Communication tends to follow formal channels and employees are given specific job descriptions delineating their roles and responsibilities. Team rewards is not a part of the compensation. The needs of different departments are centrally collected. Decision making is centralized.structure and control is imposed on employees. Rules. and development. procedures and a hierarchy of authority help in getting work done in time and with minimum cost. training. stock options. and an active sharing of knowledge with the aim to convert learning into action. profit sharing. Human resource policies when in the appropriate combination produce the talent required by the strategy and structure of the organization. rotation. Reward structure at TCS is primarily focused on individual performances. selection. REWARDS: The purpose of the reward system is to align the goals of the employee with the goals of the organization. The employees in a service organization are the biggest source of competitive advantage. There is continuous investment in learning. 18 . promotions. Coordination is maintained through the chain of command. and priorities are decided for the budgeting and allocation of the resources to capital. Vertical processes PEOPLE: People in star model depict the human resource policies of recruiting. research and development. It provides motivation and incentive for the completion of the strategic direction. bonuses. and so forth. PROCESSES: TCS has vertical processes. training. The organization‟s reward system defines policies regulating salaries. TCS has a matrix structure where is departments exists based on specialization. and so on. generating the skills and mind-sets necessary to implement the chosen strategy.

While in an organic structure it‟s a flat organization. which clearly demonstrates it has many layers of hierarchy and decision making is centralized.STRUCTURE The organization structure adapted by TCS is mechanistic in nature. A mechanistic organization is characterized by the following structural factors:        Degree of work specialization is high Departmentalization is rigid Managerial hierarchy has many layers Span of control is narrow Decision making is centralized Chain of command is long Organizational structure is very tall COO AND EXECUTIVE OFFICER HEAD GOVERNMENT ISU HEAD-GLOBAL PRESALES SUPPORT EXECUTIVE ASSISTANT HEAD-PMO CHEIF TECHNICAL ARCHITECT/HEAD HEAD BUSINESS FINANCE HEAD PROCESS HEAD HR RESOURCE MANAGEMNT LEAD The figure above depicts the organization structure of TCS. 19 .

clients want a step-by-step solution to minimize the impact of change. TCS used industry standards to define the fundamental governance processes for centralized services to be implemented across locations. For example Recruitment. L&D and MATC are centralized. Different sectors and companies use the centralized approach. A centralized system constitutes:   A processing bottleneck A single point of failure DEPARTMENTS IN TCS: Departments in TCS can be broadly classified into: Functional departments: Technical. the ERP function was chosen to pilot the implementation of the governance model to deliver centralized services. Marketing. As the organization was going through a transformation. When it comes to different functional the process is centralized within this functional. Development and Operations.CENTRALIZATION VS DECENTRALIZATION: TCS as an organization is decentralized as there are many functional groups and the main head/corporate office does not have the entire ownership of various processes. The centralized approaches have several limitations like an enormous amount of knowledge would be required to be able to deal effectively with user information requests that cover variety of tasks. Support department: Administration. Sales. IDM and HR 20 . To deliver quick results. For process standardization.

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Assurance Services. 22 . the Contract Management System (CMS) and the Project Accounting (PA) modules have been updated. and Global Consulting Practice (GCP). to bring in early visibility and ownership. The HSDUs included are Infrastructure Technology Infrastructure Services (IT IS). The changes enable involvement of the HSDUs right from the beginning that is from the contract and the WON-creation stages of an engagement. Business Process Outsourcing (BPO). Engineering and Industrial Services (EIS).TCS BUSINESSES Services:            IT Services IT Infrastructure Services Enterprise Solutions Consulting Business Process Outsourcing Platform BPO Solutions Business Intelligence & Performance Management Engineering & Industrial Services iON – Small and Medium Business Connected Marketing Solutions Mobility Solutions and Services Software:   TCS BaNCS TCS Technology Products Integration Mechanism: To improve the collaboration between the Industry Solutions Units (ISUs) and Horizontal Service Delivery Units (HSDUs) and to enhance the efficiency of sales and delivery functions.

out is maintained through swipe cards. Activities: The activities carried out are very standard and has very low level of flexibility. However.BEHAVIOR AND FORMALIZATION The behavior in the organization is standard but not very standard and there is some room for flexibility and adjustment plays an important role in coordinating people and activities. However. when the interactions are with client all communications are formal to a very large extent.M. Also officially there is no provision of flexi hours within the organization. The rules and regulations are to be followed with certain degree of flexibility in working hours and application of leaves. and a proper time swipe. in exceptional cases some amount of flexibility is allowed by the line managers and HR so as to accommodate the employees. recruitment and appraisal systems. Some of the examples are compensation. 23 . to 6 P. The degree of formalization is not very high in day to day activities and oral communication and written communication when these communications are internal. People: The standard working hours for the organization is 9 hours from 9 A.M.in and swipe.

technology specialists. The most important competency of tcs which help it in gaining competetive advantage is through the use of their TCS innovation labs and co-innovation network. such as employee dedication. Various innovation labs of tcs are as follows 24 .COMPETENCIES Core competencies are particular strengths relative to other organizations in the industry which provide the fundamental basis for the provision of added value. a reliable process and/or close relationships with customers and suppliers. A core competency can take various forms. best Human Resource Management (HRM). TCS Innovation Labs provide environments in which new domain solutions can be developed. good market coverage etc.technologies and best practices. an involvement and a deep commitment to working across organizational boundaries. business process analysts. They give TCS customers „on-demand‟ access to innovation and creativity with a team comprising of domain experts.their collaborative r&d and innovation engine that works to successfully exploit and commercialize new ideas. and piloted using the latest technologies in a cost-effective environment before enterprise-wide deployment. It may also include product development or culture. It is communication. including technical/subject matter know-how. incubated. and an R&D team.

meta-genomics.   TCS Innovation Lab. the next wave of wireless technology to provide an elegant solution for “last-mile” connectivity. Enterprise 2. e-security. TCS Innovation Lab . The lab has developed the TCS Instant Apps Technology. readers and middleware) etc. networks such as 3G. Chennai. Mumbai: Focuses on speech and natural language. 25 . ERP. Hyderabad: Focuses on computational methods in life sciences. which enables development of situational applications entirely within a browser and by business analysts instead of by developers. WiMesh. This lab has developed the Silicon Locket. Software as a Service. The Embedded Systems lab has also developed the WiMAX (IEEE 802. and SMS  TCS Innovation Lab . Technologies of focus include medical electronics. nano-biotechnology. Natural Language Processing. tags. digital asset management.  TCS Innovation Lab. chat.0 technologies). contracts and rights management systems. security. Delhi-focus of this lab is emerging technologies such as Software Architectures.0 portal technology). application maintenance outsourcing etc. RFID (chips. and TCS Natural Language Interface Technology. smart card-based applications. WiMAX. and others. Enterprise Search (Caché database technology). IP Testing for Quality of Service. convergence engines. WiMax. TCS Innovation Lab Convergence-The lab works on Content Management Systems. which enables conversational interaction with business applications over email. Multimedia Applications and Graphics. quantitative finance  TCS Innovation Lab .0 (Browser based Web 2. labels.Embedded Systems-focuses on multi modal sensing. wireless communication.16).  TCS Innovation Lab. IMS. Utility Computing (solution based on Cassatt technology). an ECGmonitoring system for remote cardiac diagnostics and tele-consultation that makes healthcare patient-centric. Data and Process Analytics.Peterborough. OSS/BSS systems. digital media protection. and WLan. England: Focuses on New Wave Communications for Enterprise (SIP based IMS platform technology. systems biology. This lab has developed SIP-based communication solution (in collaboration with InnovaLab. data warehousing. browser based Web 2. wireless systems and wireless applications (BREW Centre of Excellence). content delivery systems.Media and Entertainment-digital media distribution. Text. and intelligence. theatrical distribution systems.

India). enterprise search solutions. 26 .  TCS Innovation Lab – TRDDC.focuses on minerals and materials. optimization and mathematical modeling. Kolkata.0 and SOA based solutions (in collaboration with iLabs. process modeling and computational fluid dynamics. utility computing solutions. thermal processing. and RFID based hosted solutions (in collaboration with RFID Lab.India). and virtual manufacturing. New Delhi. India). Web 2.

But the biggest employer in the country is Indian Railways with 16 lakhs employees.770 while the size of the development center at noida that we visited has a strength of around 1000. TCS is one of the largest private sector employers in India with a core strength 214.770 individuals. and has 34. 27 . out of which 30% are females. TCS's BPO arm had revenues of $925 million in the year that ended in March 2011.TCS has turned into the second-largest employer among listed companies after Coal India Limited.000 employees.CONTEXTUAL DIMENSIONS OF ORGANIZATIONAL DESIGN size culture contextual dimensions goals and strategy organisational technology environment SIZEThe total strength of the organization is around 214.TCS has one of the lowest attrition rates in the Indian IT industry.

CULTURE-the culture at TCS can be explained with the following diagram:- focus on developing leaders fully satisfy and generate increasing value for customers and other stakeholders TCS culture managing customer relationshiips identifying your competencies as well of your team mates 28 .

PORTER’S FIVE FORCE MODEL- 29 .

Cross functional teams are necessary to deliver products which are above the value chain. The increasing margin and time pressure from clients warrants that TCS shifts its strategy from that of a cost leader to differentiator.  Though the short-term horizons have been addressed the organizational strategic objectives in the long term have not been much taken care of. imbibe and disseminate the best practices. This would help TCS to target projects which are high on value chain. STRUCTURE:  TCS needs to have organically driven structure which would foster collaboration and team work.SUGGESTED CHANGES IN ORGANIZATION DESIGN STRATEGY:  IT business in India is saturated with players which follow a cost leader strategy. unstable or subject to vary rapid changes in market conditions. Although it has an understanding of its competitive position. There is a need that personnel are empowered to make decisions and resolve problems themselves. Reward systems are effective only when they form a consistent package in combination with the other design choices.   Lack of a structured approach to evaluate.  Lack of alignment in the results of the performance analysis with business results and objectives. The reward system at TCS has to change from individual to team based. 30 . Incentive for the employees to perform as a team needs to be there for delivering superior products. assessment and impact of the threat is not well defined. but the measurement. REWARDS:  The reward system must be congruent with the structure and processes to influence the strategic direction. The environment is highly uncertain.

while encouraging leadership at all levels as the attributes of Customer Satisfaction measurement show some degree of variance to that of the expectations. work environment. Risk taking. the absence of these measures. stated customer‟s key Lateral Processes 31 . It is designed around the workflow. The absence of a well-defined approach to evaluate the cost effectiveness of digitization process.    .TCS should build a culture of encouraging thinking &creating forums for dialogue. which influence the associate. This hampering the goal setting process . PROCESSES:  TCS needs to have horizontal processes. also known as lateral processes. expressing differences and constantly generating new knowledge should be encouraged among the employees. The performance projections for measures and indicators have not been fully evolved. PEEP etc.. such as new product development or fulfillment of a customer order. The lack of integration of process improvement initiatives such as PROPEL.

4.com http://www.Richard L. Valuing of employees should be institutionalized through establishing processes that enable and enhance individual performance.wikipedia. Daft 32 . 2.TCS.org/ TCS Ultimatix Organiization Theory Change and Design. 3. The employee needs to be given autonomy and control over their work which would help in encouraging creativity. www.  The productivity levels of people is lower than that of its competitors majors so improving an employee‟s realization would enable it to achieve its stated vision . REFERENCES 1.PEOPLE:  Human resource policies also build the organizational capabilities to execute the strategic directions.