Tata Consultancy Services

Tata Consultancy Services
Tata Consultancy Services Limited
Type Public company
Traded as BSE532540
Industry IT services, IT consulting
Founded 1968
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people N. Chandrasekaran
(CEO & MD)
Services IT, business consulting and outsourcing services
Revenue increase US$ 8.355 billion (2011)[1]
Profit increase US$ 2.024 billion (2011)[1]
Total assets increase US$ 7.215 billion (2011)[1]
Total equity increase US$ 5.499 billion (2011)[1]
Employees 214,770 (Q2 2011)[2]
Parent Tata Group
Website tcs.com

Tata Consultancy Services Limited (TCS) (BSE532540, NSETCS) is an global IT services, business solutions and outsourcing company headquartered in Mumbai, India. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India.[3][4] TCS has offices in over 47 countries with more than 142 branches across the globe and is a subsidiary of textiles and manufacturing conglomerate Tata Group.TCS accounts for India’s 20 per cent IT exports.[5]



It began as the "Tata Computer Centre", for the company Tata Group whose main business was to provide computer services to other group companies. F C Kohli was the first general manager. J. R. D. Tata was the first chairman, followed by Pankaj Roy.

One of TCS' first assignments was to provide punched card services to a sister concern, Tata Steel (then TISCO). It later bagged the country's first software project, the Inter-Branch Reconciliation System (IBRS) for the Central Bank of India.[6] It also provided bureau services to Unit Trust of India, thus becoming one of the first companies to offer BPO services.

In the early 1970s, Tata Consultancy Services started exporting its services. The company pioneered the global delivery model for IT services with its first offshore client in 1974. TCS's first international order came from Burroughs, one of the first business computer manufacturers. TCS was assigned to write code for the Burroughs machines for several US-based clients.[7] This experience also helped TCS bag its first onsite project - the Institutional Group & Information Company (IGIC), a data centre for ten banks, which catered to two million customers in the US, assigned TCS the task of maintaining and upgrading its computer systems.[7]

Bombay House, the head office of Tata Group

In 1981, TCS set up India's first software research and development centre, the Tata Research Development and Design Center (TRDDC) in Pune.[8] The first client-dedicated offshore development center was set up for Compaq (then Tandem) in 1985.

In 1979, TCS delivered an electronic depository and trading system called SECOM for SIS SegaInterSettle, Switzerland. It was by far the most complex project undertaken by an Indian IT company. TCS followed this up with System X for the Canadian Depository System and also automated the Johannesburg Stock (JSE).[9] TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired.[10]

In the early 1990s, the Indian IT outsourcing industry grew tremendously due to the Y2K bug and the launch of a unified European currency, Euro. TCS pioneered the factory model for Y2K conversion and developed software tools which automated the conversion process and enabled third-party developers and clients to make use of it.[11]

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.[12]

On 9 August 2004, TCS became a publicly listed company,[13] much later than its rivals, Infosys, Wipro and Mahindra Satyam.

During 2005, TCS ventured into a new area for an Indian IT services company - Bioinformatics.[14]

In 2008, the company went through an internal restructuring exercise that executives claim would bring about agility to the organization.[15]

In 2011, the company entered the Small and medium enterprises (SME) market with cloud-based offerings.[16]

Operations & Acquisitions

Tata Consultancy Services campus at Lucknow, India
Tata Consultancy Services at Madhapur, Hyderabad

Indian branches

TCS had development centres and/or regional offices in the following Indian cities: Ahmedabad, Baroda, Bangalore, Bhubaneswar, Chennai, Coimbatore,Goa, Gurgaon, Guwahati, Kochi, Kolkata, Lucknow, Mumbai, Mangalore, Noida, Pune, Thiruvananthapuram, Jaipur, Jalandhar, Jamshedpur, Hyderabad.[17][18]

Global units

Africa: South Africa, Morocco[19]

Asia (Outside India): Bahrain, Beijing,[20] Hong Kong, Hangzhou, Shanghai, Indonesia, Israel, Japan, Malaysia, Philippines, [21] Saudi Arabia, Singapore, South Korea, Taiwan, Thailand, UAE (Dubai)[22]

Australia: Australia

Europe: Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom

North America: Canada, Mexico, USA

South America: Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay, Peru[23]

Innovation and R&D

Tata Research Development and Design Center

TCS established the first software research center in India, the Tata Research Development and Design Center, in Pune, India in 1981. TRDDC undertakes research in Software engineering, Process engineering and Systems Research.

Researchers at TRDDC also developed Master-Craft (now called TCS Code Generator Framework [24]) 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.[25]

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.[26] This product has been marketed in India as Tata swach, a low cost water purifier.[27]


In 2007, TCS launched its Co-Innovation Network, a network of TCS Innovation Labs, startup alliances, University Research Departments, and venture capitalists.[28]

In addition to TRDDC, TCS has 19 Innovation Labs based in three countries.[29]

  • processing]], text, data and process analytics, multimedia applications and graphics.
  • TCS Innovation Lab, Embedded Systems: Medical electronics, WiMAX, and WLAN technologies.
  • TCS Innovation Lab, Hyderabad: Computational methods in life sciences, meta-genomics, systems biology, e-security, smart card-based applications, Linux and open source,digital media protection, nano-biotechnology, quantitative finance.
  • TCS Innovation Lab, Mumbai: Speech and natural language processing, wireless systems and wireless applications.
  • TCS Innovation Lab, Insurance - Chennai: IT Optimization, Business Process Optimization, Customer Centricity Enablers, Enterprise Mobility, Telematics, Text Analytics, 2D Barcodes, Mashups, Innovation in Product Development and Management (PLM) for Insurance.
  • TCS Innovation Lab, Chennai: Infrastructure innovation, green computing, Web 2.0 and next-generation user interfaces.
  • TCS Innovation Lab, Peterborough, England: New-wave communications for the enterprises, utility computing and RFID (chips, tags, labels, readers and middleware).
  • TCS Innovation Lab: Performance Engineering, Mumbai: Performance management, high performance technology components, and others.
  • TCS Innovation Lab, Cincinnati, United States: Engineering and Manufacturing IT solutions.

Some of the assets created by TCS Innovation Labs are DBProdem, Jensor,[30] Wanem,[31] Scrutinet, SmartTest Manager.

In 2008, the TCS Innovation Lab-developed product, mKrishi, won the Wall Street Journal Technology Innovation Award in the Wireless category.[32] mKrishi is a service that would enable India's farmers to receive useful data on an inexpensive mobile device.[33]

TCS' Co-Innovation Network partners include Collabnet, Cassatt, MetricStream, academic institutions such as Stanford, MIT, various IITs, and venture capitalists like Sequoia and Kleiner Perkins.[34]

List of acquisitions

The table below gives some details of TCS' key acquisitions

Number Acquisition Date Company Business Country Value Headcount Remarks Reference
1 8 October 2008 Citi Global Services Limited Business Process Outsourcing India US$ 505 mn 12472 TCS acquired key BFS domain knowledge. [35]
2 November, 2006 TKS-Teknosoft Banking Product Switzerland US$ 80.4 mn 115 Expand product portfolio by acquiring rights to Quartz and ownership of Alpha and e-portfolio, enhanced presence in Switzerland and France [36]
3 November, 2005 Comicrom Banking BPO Chile US$ 23.7 mn 1257 Entry into Latin America; Access to payment processing platform [37]
4 February, 2006 Tata Infotech IT Services India - - - [38]
5 October, 2005 FNS Core Banking Product Australia US$ 26 mn 190 Acquired core banking solution product and access to 116 customers in 35 countries; FNS was an existing partner for TCS
6 October, 2005 Pearl Group Insurance United Kingdom US$ 94.7 mn 950 Acquired life and pension outsourcing business from Pearl Group; Domain knowledge of life and pension underwriting business [39]
7 November 2006 TCS Management IT Services Australia US$ 13.0 mn 35 Access to Australian clients [40]
8 May 2004 Phoenix Global Solutions BPO India US$ 13 mn 350 Acquire expertise in insurance [41]
9 May 2005 Swedish Indian IT Resources AB (SITAR) IT Services Sweden US$ 4.8 mn 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.
10 May 2004 Aviation Software Development Consultancy India (ASDC) IT Services India - 180 ASDC was a Singapore Airlines-TCS JV; Acquired Singapore Airlines as a major client [42]
11 January 2004 Airline Financial Support Services India (AFS) BPO India US$ 5.1 mn 316 BPO expertise in Airline and Hospitality sector [43]
12 October 2001 CMC Limited IT Services India US$33.89m (51%) 3100 Access to domestic capability; continues to be a separately run company. [44]


TCS BPO is the second leading player in the outsourcing industry in India behind Genpact according to Dataquest survey in August 2011.[45] TCS's BPO arm had revenues of $925 million in the year that ended in March, and 34,000 employees[46] Other than major Indian cities, TCS BPO is also present in Tier-II locations like Pune. TCS is also expanding its BPO centre in Kolkata, where it already employs 2,000 people.[47] Tata Consultancy Services has opened a business process outsourcing facility in the Philippines following the path of India-based BPO companies which have operations in that country.[48]

US Visa Program

TCS was the fourth largest visa recipient in 2008, preceded by Infosys, Wipro and Mahindra Satyam.[49]

Recent news and developments in TCS

Tata Consultancy Services signed a Rs 94-crore deal with the Karnataka government for six-year period to automate its treasury and finance department operations.[50] Deutsche Bank has selected TCS as a strategic partner for their Production Management Transformation Initiative, within their Capital Markets Business Unit.[51] Tata Consultancy Services has managed to receive ten large deals.[52] TCS is planning to hire 60,000 Employees in Financial year 2011-2012 [53] TCS has got contract from Credit Union Australia.[54] Country's largest software firm Tata Consultancy Services (TCS) has received a multi-year, multi-million dollar contract to provide application support, maintenance and development services from US-based Air Liquide.[55] A book titled The TCS Story... and Beyond published by the Penguin Group,was authored by S Ramadorai, now TCS’s Vice-chairman and launched in September 2011.The book covers the 43 years journey of TCS.[56]


TCS is one of the largest private sector employers in India with a core strength 214,770 individuals.[57] TCS has turned into the second-largest employer among listed companies after Coal India Limited.But the biggest employer in the country is Indian Railways with 16 lakhs employees.[58] TCS's BPO arm had revenues of $925 million in the year that ended in March 2011, and has 34,000 employees[59] TCS has one of the lowest attrition rates in the Indian IT industry.[60] In the past and in the present, TCS has been criticised by its employees in Public forums on its Appraisal and Promotion policies.[61]


As a brand, TCS is the 76th Most Trusted Brand according to The Brand Trust Report, 2011.TCS has been ranked as the world's 7th greenest company in Newsweek's Green Rankings 2011. In addition, TCS is the highest ranked Asia-based company and second highest ranked globally in the Information Technology & Services company category..[62]


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