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Tata Consultancy Services - Wikipedia, the free encyclopedia

Tata Consultancy Services


From Wikipedia, the free encyclopedia

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services, outsourcing and consulting company headquartered in Mumbai, Maharashtra.[4][5] TCS operates in 46 countries and has 199 branches across the world.[3] It is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and the National Stock Exchange of India. TCS is the largest Indian company by market capitalization[6][7] and is the largest India-based IT services company by 2013 revenues.[8][9] TCS is ranked 40th overall in the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT services company and the top Indian company.[10]

Tata Consultancy Services Limited

Type Traded as

Public BSE: 532540 (http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx? scripcode=532540) NSE: TCS (http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp? cons=TCS&section=7) BSE SENSEX Constituent CNX Nifty Constituent

Contents
1 History 1.1 1968 to 2000 1.2 2000 to present 1.3 Acquisitions 2 Products and services 2.1 Service lines 3 Operations 3.1 Locations 3.2 TCS BPS 3.3 Tata Research Development and Design Centre 3.4 Innovation Labs 4 Awards 5 Sponsorships 6 Controversies 6.1 Class action lawsuit
http://en.wikipedia.org/wiki/Tata_Consultancy_Services

Industry Founded Founder(s)

Information technology 1968 J.R.D Tata

Headquarters Mumbai, Maharashtra, India Area served Worldwide Key people Services Natarajan Chandrasekaran (CEO & Managing Director) IT services Outsourcing services IT consulting US$ 11.57 billion (FY 2012-13)[1]
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Revenue

6.2 Hiring in Canada

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6.2 Hiring in Canada 7 See also 8 References 9 External links

Operating income Profit Total assets

US$ 3.12 billion (FY 2012-13)[1] US$ 2.59 billion (FY 2012-13)[1] US$ 9.58 billion (31-Mar-2013)[1] US$ 7.66 billion (31-Mar-2013)[1] 285,250 (September 2013)[2][3] Tata Group CMC Limited, TCS China, TRDDC, Computational Research Laboratories, TCS e-Serve Ltd. www.tcs.com (http://www.tcs.com/)

History
1968 to 2000
Tata Consultancy Services Ltd (TCS) was founded in 1968 by J.R.D Tata as a division of Tata Sons Limited.[11] Its early contracts included providing punched card services to sister company TISCO (now Tata Steel), working on an Inter-Branch Reconciliation System for the Central Bank of India,[12] and providing bureau services to Unit Trust of India.

Total equity Employees Parent Subsidiaries Website

In 1975, TCS conducted its first campus interviews, held at IISc, Bangalore. The recruits comprised 12 Indian Institutes of Technology graduates and three IISc graduates, who became the first TCS employees to enter a formal graduate trainee programme.[13] In 1979, TCS delivered an electronic depository and trading system called SECOM for the Swiss company SIS SegaInterSettle. TCS followed this up with System X for the Canadian Depository System and automating the Johannesburg Stock Exchange.[14] TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired.[15] In 1981, TCS established India's first dedicated software research and development centre, the Tata Research Development and Design Centre (TRDDC) in Pune.[16] In 1985 TCS established India's first client-dedicated offshore development centre, set up for clients Tandem. In the early 1990s the Indian IT outsourcing industry grew rapidly due to the Y2K bug and the launch of a unified European currency, Euro. TCS created the factory model for Y2K conversion and developed software tools which automated the conversion process and enabled third-party developer and client implementation.[17]

2000 to present
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By 2004, TCS's e-business activities were generating over US$500 million in annual revenues.[18] On 25 August 2004, TCS became a publicly listed company.[19] In 2005, TCS became the first India-based IT services company to enter the bioinformatics market.[20] In 2006, TCS designed an ERP system for the Indian Railway Catering and Tourism Corporation.[21] In 2008, TCS undertook an internal restructuring exercise which aimed to increase the company's agility.[22] TCS entered the small and medium enterprises market for the first time in 2011, with cloud-based offerings.[23] On the last trading day of 2011, TCS overtook RIL to achieve the highest market capitalisation of any India-based company.[24] In the 2011/12 fiscal year, TCS achieved annual revenues of over US$10 billion for the first time.[25] In May 2013, TCS was awarded a six-year contract worth over 1100 crores to provide services to the Indian Department of Posts.[26]

Acquisitions
Name CMC Limited Acquisition date Activities Country of HQ India India Price $ 33.9 m Employees (at acquisition) 3,100 Notes Access to domestic capability; continues to be a separately run company. BPO expertise in Airline and Hospitality sector ASDC was a Singapore Airlines-TCS JV; Acquired Singapore Airlines as a major client Acquire expertise in insurance-domain consulting Reference
[27][28][29]

October 2001 IT Services BPO

Airline Financial Support Services India January 2004 (AFS) Aviation Software Development Consultancy India (ASDC) Phoenix Global Solutions Mar 2004

$ 5.1 m 400

[30][31]

IT Services

India

$ 3.1 m 180

[32][33]

May 2004

BPO

India

$ 13 m 400

[34][35]
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Swedish Indian IT Resources AB (SITAR)

May 2005

IT Services

Sweden

$ 4.8 m n/a

Acquire blue-chip European customers like Ericsson, IKEA, Vattenfall and Hutchison; SITAR was TCS exclusive partner in Sweden and a non-exclusive partner in Norway. Acquired life and pension outsourcing business from Pearl Group; Domain knowledge of life and pension underwriting business. TCS acquired core banking solution product (BANCS) and access to 116 customers in 35 countries; FNS was an existing partner for TCS. Entry into Latin America; Access to payment processing platform. The merger of Tata Infotech added 15 new Fortune 500 clients and enhanced TCS systems integration and infrastructure service capabilities. Access to Australian clients Expand product portfolio by acquiring rights to Quartz and ownership of Alpha and eportfolio, enhanced presence in Switzerland and France TCS acquired key Banking and Financial Services (BFS) domain knowledge. TCS had a deal with Supervalu to have their Software Outsourcing to TCS and acquired Supervalu India. Acquire expertise in High Performance

[36][37]

Pearl Group

October 2005 Insurance

United Kingdom

$ 94.7 m

950

[38][39]

Financial Network Services (FNS) Comicrom

October 2005 November 2005

Core Banking Product Banking BPO

Australia

$ 26 m 190

[40][41]

Chile

$ 23 m 1,257 $ 259.2 3,600 m $ 13 m 35 $ 80.4 m

[42][43]

Tata Infotech

February 2006 IT Services November 2006 November 2006 December 2008

India

[44][45][46]

TCS Management

IT Services

Australia

[47][48]

TKS-Teknosoft Citigroup Global Services Limited Supervalu Services India

Banking Product Switzerland Captive BPO of India Citigroup Inc.

115

[49]

$ 512 m 12,472 $ 100 m 600

[50][51]

Captive IT/BPO 15 September unit of Supervalu India 2010 Inc. in India High

[52]

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Computational August 2012 Research Laboratories

High Performance Computing

Tata Consultancy Services - Wikipedia, the free encyclopedia

India

$ 34 m 80

Computing (HPC) applications and Cloud services Access to blue-chip French and European clients in banking, luxury, manufacturing and utilities sectors

[53][54]

Alti SA

April 2013

IT Services

France

$ 97.5 m

1,200

[55]

Products and services


TCS and its 58 subsidiaries[56] provide a range of information technology-related products and services including application development, business process outsourcing, capacity planning, consulting, enterprise software, hardware sizing, payment processing, software management and technology education services.[57] Its established software products are TCS BaNCS and TCS MasterCraft.[58]

Service lines
TCS' services are currently organised into the following service lines (percentage of total TCS revenues in the 2012-13 fiscal year generated by each respective service line is shown in parentheses): Application development and maintenance (42.80%); Asset leverage solutions (2.70%); Assurance services (7.70%); Business process outsourcing (12.50%); Consulting (3.00%); Engineering and Industrial services (4.60%); Enterprise solutions (15.20%); and IT infrastructure services (11.50%).[57]

Operations
As of 31 March 2013, TCS had 199 offices across 44 countries and 124 delivery centers in 21 countries.[3] At the same date TCS had a total of 58 subsidiary companies.[57]
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Locations
TCS has operations in the following locations: India: Ahmedabad, Bangalore, Baroda, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Delhi, Gandhinagar, Goa, Gurgaon, Guwahati, Hyderabad, Indore, Jamshedpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, Noida, Pune and Trivandrum[59][60] Africa: South Africa, Morocco[61] Asia (excluding India): Bahrain, China, Israel, Dubai, Hong kong, Indonesia, Japan, Malaysia, Philippines, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand[62] [63] [64] Australia: Australia Europe : Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Republic of Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and United Kingdom. North America: Canada, Mexico and United States. South America: Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Uruguay.[65]

Tata Consultancy Services, Hyderabad

The Tata Consultancy Services campus in Lucknow

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TCS BPS
TCS BPS is the second-largest India-based IT outsourcing company (after Genpact).[66] The BPO division had revenues of US$ 1.44 billion in the FY 2012-13 which was 12.5% of the total revenue of TCS.[67] TCS BPO has more than 45,000 employees which serve over 225 customers across 11 countries.[68] The rate of attrition in BPO division during the financial year 2012-13 was 19.5%.[69] Tata Consultancy Services has also opened a business process outsourcing facility in the Philippines.[70]

Tata Research Development and Design Centre


Main article: Tata Research Development and Design Centre TCS established the first software research center in India, the Tata Research Development and Design Centre, in Pune, India in 1981. TRDDC undertakes research in Software engineering, Process engineering and systems research. Researchers at TRDDC also developed MasterCraft (now a suite of digitization and optimization tools)[71] a Model Driven Development software that can automatically create code based on a model of a software, and rewrite the code based on the user's needs.[72] Research at TRDDC has also resulted in the development of Sujal, a low-cost water purifier that can be manufactured using locally available resources. TCS deployed thousands of these filters in the Indian Ocean Tsunami disaster of 2004 as part of its relief activities.[73] This product has been marketed in India as Tata swach, a low cost water purifier.[74]

Innovation Labs
In 2007, TCS launched its co-innovation network, a network of innovation labs, start up alliances, university research departments, and venture capitalists.[75][76] In addition, TCS has 19 innovation labs based in three countries.[77] TCS' partners include Collabnet, Cassatt, academic institutions such as IITs, Stanford, MIT and venture capitalists like Sequoia and Kleiner Perkins.[78]

Awards
TCS was awarded the Business Standard's Company of the Year award for 2012.[79] In 2012, the company won Gold Shield award for excellence in financial reporting from the Institute of Chartered Accountants of India (ICAI).[67][80] The company won 'Recruiting and Staffing Industry Leader of the Year' and Best Employer Brand awards at the World HRD Congress' annual meet in 2012.[67]

Sponsorships
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TCS is the title sponsor for Amsterdam Marathon, Bangalore 10k, New York City Marathon [81] and one of the sponsors of Berlin Marathon, Chicago Marathon, Boston Marathon and Mumbai Marathon.[82] TCS is a sponsor of Indian Premier League team Rajasthan Royals since 2009.[83] In addition, TCS provides Rajasthan Royals with technology to help in analysis of player performance, simulation and use of RFID tags for tracking the players fitness levels and for security purposes in the stadiums.[84][85] TCS sponsors an annual IT quiz for high school students called TCS IT Wiz.[86]

Controversies
Class action lawsuit
On 14 February 2006, US law firm Lieff Cabraser Heimann & Bernstein, LLP filed a nationwide class action lawsuit against Tata.[87] In April 2012, a US District Judge in Oakland, California approved action on the lawsuit on behalf of all non-US citizens employed by TCS within the state of California from 14 February 2002 to 30 June 2005. The workers claimed that they were forced to sign over their federal and state tax refunds to their employer, as well as stating their Indian salaries were wrongfully deducted from their US pay.[88] On February 22, 2013, the Company entered into an agreement to settle for a sum of INR 16,163 lakhs (USD 29.75 million), this class action suit filed in a United States of America Court relating to payment to employees on deputation. The Court has granted preliminary approval to the settlement agreement.[57] Charleston County, S.C, sued Tata Consultancy Services for delivering a botched software. TCS won the contract to create an online tax system (digiTax) for a $1.2 million. The system was supposed to go live in July, 2004 but was plagued by several delays. Tata developed the software at its offshore development center in Chennai, India. The software was rejected by Charleston County during user acceptance testing where it failed to meet even the basic requirements. County sued Tata and it agreed to pay back $1 million in out of court settlement. County finally bought out of box solution. [89]

Hiring in Canada
In May, 2013 the Canadian Broadcasting Corporation, in its extensive coverage of the hiring of temporary foreign workers in Canada and the unemployment issues faced by Canadians, reported that TCS rarely hires skilled experienced Canadians while advertising open positions in Canada. TCS responded that the company hired more than 125 Canadian workers in 2013. [90]

See also
List of Indian IT companies List of companies of India

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References
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71. ^ "TCS Mastercraft Suite of Products" (http://www.tcs.com/offerings/mastercraft/Pages/default.aspx). Tata Consultancy Services. 1 October 2012. 72. ^ "When Outsourcing Loses Human Element" (http://www.iht.com/articles/2005/05/26/business/tata.php). International Herald Tribune. 27 May 2005. 73. ^ "Improving Our World IEEE Annual Report(page 4)" (http://www.ieee.org/portal/cms_docs_iportals/iportals/aboutus/annualreport/2005/IEEE-AR05Section1.pdf). IEEE. 2005. 74. ^ "Tata launches Swach water filters" (http://www.deccanherald.com/content/40000/tata-launches-swach-water-filters.html). Deccanherald.com. Retrieved 12 August 2010. 75. ^ "TCS launches its Co-Innovation Network" (http://www.financialexpress.com/news/tcs-launches-its-coinnovation-network/191184/). Financialexpress.com. 18 January 2007. Retrieved 16 July 2010. 76. ^ "The TCS Co-Innovation Network" (http://www.tcs.com/about/tcs_difference/innovation/network/Pages/default.aspx). TCS. Retrieved 6 September 2013. 77. ^ "Innovation Labs" (http://www.tcs.com/about/tcs_difference/innovation/tcs_labs/Pages/default.aspx). TCS. Retrieved 16 July 2010. 78. ^ "Co-Innovation Network" (http://www.tcs.com/about/tcs_difference/innovation/network/Pages/default.aspx). TCS. Retrieved 26 July 2010. 79. ^ "Business Standard Awards: Toasting corporate excellence" (http://www.business-standard.com/article/beyond-business/business-standard-awards-toastingcorporate-excellence-113032400196_1.html). Business Standard. 24 March 2013. Retrieved 3 September 2013. 80. ^ "Important Activities undertaken during the last year" (http://www.icai.org/resource_file/19237res-act.pdf). ICAI. Retrieved 3 September 2013. 81. ^ TCS title sponsor for New York Road Runners (http://www.business-standard.com/article/companies/tcs-title-sponsor-for-new-york-road-runners113100300366_1.html). Business Standard (2013-10-03). Retrieved on 2013-12-06. 82. ^ "About TCS - Corporate Facts - Sponsorships" (http://www.tcs.com/about/corp_facts/sponsorships/Pages/default.aspx). TCS. Retrieved 6 September 2013. 83. ^ TCS ties up with Rajasthan Royals (http://www.hindu.com/2009/04/08/stories/2009040862632000.htm/) 84. ^ TCS is Rajasthan Royals tech partner (http://www.thehindubusinessline.com/todays-paper/tp-info-tech/article1048817.ece/) 85. ^ Tata Consultancy Services enters the Indian Premier League (http://www.rajasthanroyals.com/news20090407.aspx/) 86. ^ TCS IT Wiz (http://www.tcsitwiz.com) 87. ^ Vedachalam v. Tata Consultancy Services, Ltd. (http://www.lieffcabraser.com/employment-law/case/149/tata-consultancy-services) 88. ^ "TCS faces class action lawsuit in US" (http://news.in.msn.com/tcs-faces-class-action-lawsuit-in-us). MSN News. 4 April 2012. Retrieved 20 February 2013. 89. ^ http://nl.newsbank.com/nl-search/we/Archives?p_action=doc&p_docid=11F320ACB663DBD0&p_docnum=1 90. ^ Posted: May 20, 2013 2:05 AM PT (2013-05-20). "Canadian on EI shut out amid foreign worker influx - British Columbia - CBC News" (http://www.cbc.ca/news/canada/british-columbia/story/2013/05/17/bc-foreignworkers.html). Cbc.ca. Retrieved 2013-06-10.

External links
Official website (http://www.tcs.com/homepage/Pages/default.aspx) TCS's channel (https://www.youtube.com/user/TCSGlobal) on YouTube TCS (https://www.facebook.com/TataConsultancyServices) on Facebook Business data Tata Consultancy Services Ltd. (https://www.google.com/finance?q=TCS.NS) at Google Finance
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Tata Consultancy Services Ltd. (http://finance.yahoo.com/q?s=TCS.NS) at Yahoo! Finance Tata Consultancy Services Ltd. (http://www.reuters.com/finance/stocks/overview?symbol=TCS.NS) at Reuters

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