Marketing Strategies – Tata

Consultancy Services
SMBA – 16

Mitul Parikh
Nitin Chaudhari
Meena Salvi
Mohini Patwardhan
Ramdas Tarkar
Chetan Poojari
Phinsy Chariyath
Rahul Aiah
VISION, MISSION & VALUES…
 To create value by leveraging our co-innovation
network in a manner that has an impact on the
customers ecosystem
 To be among the top 3 companies worldwide by
2011; Culture of accountability, delivering certainty
to customers.
 Their values – integrity, leading change,
excellence, respect for the individual, and fostering
an environment of learning and sharing.
BACKGROUND…
 It began in 1868 as the "Tata Computer Centre", for the
company Tata Group whose main business was to provide
computer services to other group companies.
 One of TCS' first assignments was to provide punched card
services to a sister concern, Tata Steel (then TISCO).
 In the early 1970s, Tata Consultancy Services started
exporting its services.
 In 1981, TCS set up India's first software research and
development centre, the Tata Research Development and
Design Center (TRDDC) in Pune.
 In 1999, TCS saw outsourcing opportunity in E-Commerce
and related solutions and set up its E-Business 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.
AS OF NOW POSITION…
 Tata Consultancy Services Limited (TCS) is
a global IT services, business solutions and
outsourcing company
 It is the second-largest India-based provider of
business process outsourcing services.
 In 2011 it has billed a total revenue of $7.21
billion.
 Total employee strength is 2,26,751.

 Key People: Subramaniam Ramadorai(Vice

Chairman), N. Chandrasekaran (CEO & MD)
AS OF NOW POSITION…
 TCS has been ranked #20 in the list of top
companies, by Fortune India 500.
 TCS has 142 offices across over 47 countries and
generates around 20% of India IT exports.
 TCS Maitree has been a unit in TCS which is
developing itself bigger than the organisation.
Revenue Breakup
ETHICS & TCS
 TCS has its own Values and
principles defined for
employees.
 It was aiming global so the
ethical values defined are
across all Tata groups.
 They have around 25 code of
conducts maintained.
ETHICALLY SOUND

 A senior executive at the Vice President level

is designated as Ethics Counselor.

 The LECs and the corporate ethics team and

its responsibility.

 Policies related to the TcoC are reviewed

from time to time and changes if any are
communicated appropriately across the
Company.

 At the Board level, the Ethics and Compliance

Committee oversees TCS’ compliance to the
Codes of Conduct to be followed by the
Directors, Officers and other employees.

 Monthly Reports are sent to the Committee

on matters relating to the Insider Trading
Code and the CoC.
CORPORATE STRATEGY…

Strategic Technological Changes.

Innovative Strategy
 •Consulting to products, providing solutions
•TCS is also developing •Built a and implementations to support.
solutions in Healthcare, customer- 25 per cent of TCS’ revenues came from
Retail and Government newer services like BPO, Infrastructure,
centric, domain-
sectors. Assurance and Asset Leveraged Solutions,
led organization, reflecting the
•Targeting Small and
medium enterprises backed by effectiveness of this strategy.
and rural and excellence in
cooperative banks of execution
India
TCS’ unique Global
Network Delivery
Customer Model (GNDM™)
Centricity enables a seamless
•Acquisitions delivery of services from
a network of
that are
delivery centers
strategic in distributed across India,
nature Non Linear
Full Services China, Europe,
Business
•Strengthen models
Capability North America and Latin
gaps in services Strategies for America
long term Teams working in
portfolio
sustainable geographically
•Easier market growth distributed delivery
access in specific
centers can collaborate
segments, on projects,
techonlogy with seamless hand-offs
expertise and and leverage all the
Strategic
specific domain. Acquisitions
GNDM organization’s
assets, ensuring a ‘One
Global Service Standard
Career Development

TCS caters to the employees aspirations, motivating employees to realize their potential
and providing them with a predictable roadmap and necessary tools for personal growth
to retain employees.

Personal Development Planning forms a central part of the annual appraisal and goal-
setting process.

Even focuses on soft skills development including team building, innovative and creative
thinking, cross cultural adaptation etc.

TCS keeps employees engaged and motivated by providing opportunities for

continuously upgrading competencies by rotation across roles, technologies, customer
and industries and geographies.

TCS has several schemes for recognizing and rewarding employees.

Employee engagement and motivation

Employee retention and motivation are greatly facilitated through closer engagement
with employees and by fostering a spirit of community, through shared activities outside
of work.

Developed forum for employees and their families to participate in and develop sense of
camaraderie is Maitree, which harnesses their energy and enthusiasm to undertake
activities for the betterment of the local communities and the environment.

TCS actively supports athletic and sporting activities at the national, regional and local
level and encourages employees to participate.

Occupational Health and Safety

TCS is committed to provide its employees a safe and comfortable work environment,
going beyond accidents, injuries and occupational health hazards, to general the
physical and mental health and well- being of associates and their families.

TCS have implemented an Occupational Health and Safety Management System

(OHSMS) and have been recommended for enterprise wide certification.

TCS have a Hazard Identification and Risk Assessment process (HIRA) to identify and
analyze the levels of risk associated with the various activities at each the facility.
Supplyside Sustainability Senior Level
3.7%
Middle Level
The total number of employees
31.9%
including subsidiaries as at March 31, Junior Level
2011 was 2,54,378 (compared to 64.4%
1,60,429 on March 31, 2010).

The headcount is 140,619 on a

standalone basis (compared to 126,150 Breakup of workforce by employee category
on March 31, 2010).
40-50 years, >50 years,
2.9% 0.9%
TCS has highly educated workforce 30-40 years,
whose technical skills are much valued 19.9%
globally and consequently.

It is a predominantly young

workforce, with an average of ~28
years. < 30 years,
76.3%

Breakup of workforce by age

Diversity in talent pool

TCS is an Equal Opportunity Employer

who has been able to expand the talent
pool in terms of gender, geography and
academic discipline.

The growing diversity in our global

workforce is reflected by the continuing
increase in the number of female
employees and non-Indian employees.

Non-Indian employees represent 80

different nationalities.

TCS has set up onshore or near shore

delivery centers where engineering
talent is easily available or where there
is language barrier.
PERFORMANCE CRITERIA
 Volume growth of 17.4% .
 Gross Margin growth of
46.2%.
 EBIT margin of 26.5%

 Gross headcount addition

of 38,063
 Net headcount addition of
16,668
MERGERS AND ACQUISITIONS – IDENTIFYING
NEW MARKETS
 TCS is set to report earnings
growth of 16.5 percent in the
year 2010-11 thanks to a healthy
deal pipeline.

 TCS, part of the salt-to-software

Tata conglomerate, is the first
private-sector company to
overtake Reliance in market
value. (Dec 30, 2011).

 TCS was the first to start the

BPO Industry.
ACQUISITION OF CITI GROUP
 TCS has acquired Citi Global Services on 8 Oct 2008.
Value of the deal was $505 mn.

 After the acquisition of Citigroup Global Services Ltd

(CGSL), TCS will be the second-largest BPO player
globally, after IBM.

 Citi has also signed an $2.5 billion deal through which

TCS will provide process outsourcing services to Citi
and its affiliates over nine-and-a-half years. This will be
provided through CGSL, the release said.
ACQUISITION OF PEARL GROUP
 TCS has acquired Pearl Group in Oct 2005. Value of the
deal was $94.7 mn.

 Pearl Group is one of the largest insurance provider in

United Kingdom.

 With this contract, TCS will now manage some eight

million policies in UK using the same platform,
increasing the company’s share of revenues earned
without having to hire additional staff.
OTHER ACQUISTION
 Comicrom was acquired in Nov 2005. It is a
Banking BPO in Chile.
 TCS Management was acquired in Nov 2006. The
company provides IT Services in Australia. Value of
$ 13 mn.
 Phoenix Global Solutions was acquired in May
2004. The deal was of $ 13mn.
SYNERGY WITH THE MASSES…
Corporate Social Responsibility:
 TCS supports local communities and society at large through (i) IT for
community welfare, (ii) TCS-Maitree, our volunteer corps consisting of TCS
employees and their families and (iii) the funding of philanthropic activities.
 The key focus areas for TCS CSR work are: Health, Education and
Environment. The programs we launch and the communities we work with
are decided based on the needs of those communities
 In addition to benefiting the targeted community, our CSR activities have the
added benefit of giving our volunteer corps meaningful projects into which
they can channelize their altruism.
 Other CSR activities as TCS funded the restoration of some 274 old and rare
books totaling over 100,000 pages in theUniversity Library in Mumbai.
 TCS encouraged women’s empowerment, the program has now expanded to
children’s education and development of local infrastructure.
 TCS Maitree
TCS Maitree:
• Maitree was started with an objective of bringing
TCS associates and their families closer and
making them feel a part of the TCS extended
family
• Soon after, with a view to carry on the TATA
tradition of enabling the community, the scope
of Maitree was enhanced to include socially
relevant activities and endeavors.
 TCS Maitree
Maitree and the TCS Community:

• Maitree was established with an intention to strengthen the

bond between TCS employees and their families, as well as
provide a platform to encourage hidden aspirations and talents.
• Workshops on theatre, yoga, origami, flower arrangement,
chocolate making, and a host of others have allowed the
employees to learn and know about things they always wanted
to.
• All in all, Maitree provides everyone at TCS the opportunity to
establish relationships that extend beyond work and thereby,
help build bonds that makes work so much more fun.
 TCS Maitree
Maitree - Even beyond the TCS Community:
• In addition to working towards bringing our associates and
their families closer, Maitree also strives to enable the
development of the society.
• Of the projects TCS have undertaken include working with
the differently-abled, aiding under-privileged children across
various schools in Mumbai, and helping rural community in
Vazapur.
• Many programs initiated by Maitree, like employment
opportunities for the differently-abled, HIV/AIDS
sensitization, peer education, Green Audits to check the
excess consumption of energy resources have now been
accepted as best practices by the organization.
 TCS Maitree
• With the belief that people with disabilities offer
incredible reserves of untapped potential and an
alternative talent pool, TCS-Maitree has recruited more
than 30 differently-abled people in various branches of
TCS.
• The following are some of the roles in which the visually
impaired persons are working in TCS:
– Infrastructure Services Management
– BPO processes
– Learning & Development coordinator
– Human Resource Manager
– Global Helpdesk
– Accessibility testing
 TCS Maitree
Rural Development:
• Mid-day meal scheme for Balwadi kids
• Computer literacy program
• A state-of-the-art science lab
• TCS-Maitree launched the WEP (Women Empowerment
Program) where the women of the village were taught basic
arithmetic and created awareness in health and hygiene.
• More than 25 women from three villages in the area have
been trained in embroidery, stitching, and other textile
craftwork over the last one year with help from the Women's
India Trust.
• A new Gram Vikas Abhiyaan Kendra was recently
inaugurated to facilitate income generation for the women.
 TCS Maitree
TCS-Maitree has also made strides in the area of health,
conducting HIV/ AIDS sensitization sessions as well as
health check-up camps for the villagers and school
children:
• Thalassaemia Drive
• HIV AIDS awareness program
• The highlights of this initiative are:
– Commemorating World AIDS Day
– Red Ribbon distribution at all offices
– Online Quiz for creating more awareness
– Removing myths and misconceptions through articles
– Peer Educator Program - Communicating with associates in
their own language, through their 'peers'
 TCS – GO GREEN
 TCS is committed to optimize its resource consumption,
minimize its ecological as well as carbon footprint with the
ultimate objective of decoupling business growth and
environmental impact.
 TCS implemented Environment Policy in December 2009 to
formalize key activities designed to minimize our environmental
footprint and mitigate the impact – in terms of the resources
consumed as well as our outputs.
 The policy is based on the following key pillars:
 Climate change mitigation through commitment to reduce GHG
emissions and corresponding carbon footprint
 Green IT
 Green Procurement
 Reduce, Reuse, Recycle
 Resource Efficiency
 Green Infrastructure – Green Buildings
TATA CONSULTANCY SERVICES
Environmental Target and Performances
TATA CONSULTANCY SERVICES

Greenhouses at Yantra Park, Deccan Park and

Shollinganallur;
use bio-fertilizers such as vermicompost and sludge from
our bio-digester plant and sewage treatment plant.
Kalinga Park, Bhubaneswar
TATA CONSULTANCY SERVICES
Paper Recycling Initiatives:
 Shredded paper waste generated from TCS offices is sent to
NGOs for recycling, instead of to municipal landfills.
 Many of these NGOs make cardboard files and notepads using
the waste paper and supply those back to the organization.
 Yantra Park facility in Mumbai, shredded waste paper is
recycled through an NGO named Stri Mukti Sangathana,
working for the betterment of economically deprived women.
 They purchase the waste paper for a nominal amount and
supply notepads made of recycled paper.
 In 2009-10, 32 sites adopted the practice and sent 69 tonnes of
shredded paper for recycling.
TATA CONSULTANCY SERVICES
Employee Engagement:
 Employees’ buy-in is essential to the success of
Environment Management program at TCS.
 TCS Environmental Policy aims to create greater
awareness among employees on pressing issues like
pollution, deforestation, global warming, depletion of
non-renewable resources, e-waste disposal and bio-
diversity awareness.
 Recruits are trained on TCS’ Environmental Policy
during the Initial Learning Program (ILP).
 In 2009-10, over 100,000 associates and contractors
participated in the classroom sessions, floorwalks,
awareness campaigns and web based training.
TATA CONSULTANCY SERVICES
E-waste management:
 The E-waste generated at the various TCS center includes Computers,
Monitors, Servers, and allied hardware. TCS has an internal E-waste
Management policy based on WEEE directive and the Government
of India’s draft e-Waste Rules 2010 that mandates disposal of e-waste
through specific e-waste handlers and recyclers approved by the
Government of India’s Ministry of Environment and Forests (MoEF).
 In 2009-10, 5,879 pieces of equipment from all centers, amounting to
100% of our e-wastes, were disposed of through authorized handlers /
recyclers.
 In addition, another 1,067 computers which were deemed obsolete
for TCS’ purposes but in full working condition, were donated to
government-run schools which often lack such equipment.
 Recipients of such donations are advised to return the hardware to
TCS or to authorized recyclers once they reach end-of-life, for safe
disposal.
 Porter’s Five Forces Analysis of TCS
Threat of New Entrant Bargaining Power of Buyers
-Low capital requirements -Very high

-Large value chain -Large number of IT companies

-MNC’s -Huge decline in IT expenditure.

Rivalry among competing firms in industry

-Strong competitors
-Low cost
-High industry growth

Bargaining Power of Suppliers Threat of Substitute Products

-Slowdown, the job cuts, and the layoffs -High

-Demand and supply of IT professionals -Other offshore locations

-Availability of vast talent pool -Price

 SWOT Analysis of TCS
STRENGHTS WEAKNESS
.Good working environment. -Weak management team
.Effective communication.
.Cost Advantage -Weak damaged brand
.Market Share Leadership
.Strong Brand Equity • Commodity products, services
.Pricing
Reputation

OPPORTUNITIES THREATS
• Innovation • Competition

• Product and service Expansion in • Converging IT salaries

advanced analytics
• Strong S/W venders sales support

• Global Economic dislocations in

client markets hit India
disproportionately.