Tata Consultancy Services Limited: The Pioneer in the Indian IT Industry

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Case Details:

Case Code : BSTR125
Case Length : 22 Pages
Period : 1990 - 2004
Organization : TCS
Pub Date : 2004
Teaching Note : Available
Countries : India
Industry : Information Technology, Software

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Best Practices

Over time, TCS pioneered several best practices in the Indian IT industry. The company followed a unique factory approach in managing its functions including product development, creating new infrastructure and human resource management.

Product Development
For TCS, most of the product research and development was undertaken by its research wing - Tata Research Development and Design Centre (TRDDC) in Pune. The centre viewed the development of software products as a capital-intensive activity. Explaining this, Kesav V Nori (Nori), former executive Vice-President, Software Research, TRDDC and currently, Chief Information Officer, TCS, said, "We want to mimic the industrial revolution and make software development a capital-intensive activity. This has been a major theme for software research here since the centre's inception." TCS had realized from the very beginning that with technology changing at a rapid pace, it was not feasible every time for it to write a new code from beginning while developing new applications...

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The Growth Strategy

In the late 1990s, to accelerate its revenue growth, TCS decided to employ a three-pronged strategy. This involved developing new products with high revenue earning potential, tapping domestic & other fast growing markets and focusing on inorganic growth through mergers & acquisitions.

Focus on High Potential Areas
TCS identified high potential areas in terms of technology and industries on which it would concentrate. For instance, in late 1998, the company decided to concentrate on new revenue opportunities including Y2K and Euro conversion. A major area of focus in the late 1990s was e-business. All TCS products and platforms were web-enabled. It also decided to specialize in e-business consulting. The company offered e-business solutions and consulting in various functional processes including customer relationship management (CRM), supply chain management (SCM), enterprise resource planning (ERP), business intelligence, management information systems (MIS), customer support services, integrated knowledge management (Groupware) and more (Refer Exhibit IV for e-business solutions of TCS)...

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