119166466 organizational structure tcs

8/13/2019 119166466 Organizational Structure TCS

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T a t a C o n s u l t a n c y L i m i t e d

O r g a n i z a t i o n a l S t r u c t u r e

Ankit Kumar Bharat Krishnan Mudit Dayal Nikhil Thapar Ravissant Markandey

(WMP08004) (WMP08008) (WMP 08023) (WMP 08024) ) (WMP 08037)

Presented by:
http://upload.wikimedia.org/wikipedia/en/5/59/TCS_Logo.svg


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Vision Mission and Values

[2]

TCS

Vision

To be the Global Top 10 IT company by 2010(already achieved)

Mission

To help customers achieve their business objectives, byproviding innovative, best-in-class consulting, IT solutions andservices. To make it a joy for all stakeholders to work with us

Values

Leading change, Integrity, Respect for theindividuals, Excellence, Learning and Sharing


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Agenda

Company Profile

Profile of Top Management

Products and Services

Business Environment

Structure

Systems

Culture

[3]

Knowledge Management

Growth Plans

Company Performance

Key Competitors

Challenges of TopManagement

Recommendations
http://upload.wikimedia.org/wikipedia/en/5/59/TCS_Logo.svghttp://upload.wikimedia.org/wikipedia/en/5/59/TCS_Logo.svg


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Company ProfileBasic facts

Founded in 1968

It is now one of India's most valuable companies and is the largest India-based IT services company by 2012revenues.

Head Quarter TCS House, Raveline Street, Fort, Mumbai - 400 001, India

CEO N. Chandrasekaran

An MNC having 142 offices in 47 countries across globe

Total Head Count - 238,583

Key foreign subsidiaries includes CS Australia, TCS china, TCS Brazil, TCS Mexico, TCS USA, TCS UK, TCSThailand

Revenue $10.0 Billion

Total Market capitalization = $ 52 billion

Listed in NYSE, BSE, NSE

TCS Growth over the years

[4]

Revenue Year No. of Employee$100 Mn 1991-92 5,500

$1 Bn 2002-03 24,000$2 Bn 2004-05 47,000$5 Bn 2007-08 1,10,000$6 Bn 2008-09 1,43,000

$10 Bn 2011-12 254000


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Profile of Top Management

[5]

Key People

Ratan Tata (Chairman) N Chandrasekaran (CEO and MD) S Mahalingam (CFO and ED) Phiroz Vandrewala(COO) Ajoy Mukherjee(VP and Head HR)

CEO

Corporate

Head(GlobalAffairs)

RegionalHeads CTO CFO COO ISU heads


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Profile of Top Management(Roles and Responsibilities)

[6]

N Chandrasekaran (Leading the change)

Responsible for formulating and executing the companys global strategycreated multiple agile business units focusing on domains and markets as well as built strategicbusiness units in order to pursue new initiatives with the ability to invest, develop and mature new ideas.

Under his leadership, TCS pioneered the creation of its unique Global Network Delivery Model (GNDM)across five continent

Chandra has also driven the domain diversification drive that has seen the company enter new verticalslike media and information services as well as high-tech

Through his experience in a variety of operating roles across TCS, he has built a reputation in the IT servicesindustry for his exceptional ability to build and grow new businesses and nurture long-term relationships.

The change in mindset instills an ability to learn to

live with change. This, coupled with empowereddecision-making and an ownership-based

approach, is aimed at ensuring that

transformation is a continuous process.

-Ramadorai.

The organizational structure has to

continuously mutate and evolve to remain

relevant. It has to transform itself to meetemployee aspiration and ensure customer

delight. There was recognition within TCS

that there was a need for transformation.

You need to know where you are going.

Only then will the vision, mission and

values hold.

-PS Vishwanathan.


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Products and Services

[7]

TCS' services are currently organized into the following service linesApplication development and maintenance (44.75%)

Services

IT services IT infrastructure services Enterprise solutions Consulting Business process outsourcing

Business intelligence and performance management Engineering and industrial services IT and business solutions for small and medium business enterprises

Products

TCS Financial Solutions (TCS Bancs) TCS Data Cleansing Framework TCS Hospital Management

Solution TCS Enterprise Integration and Control Environment Solution/Energy and Utilities TCS Bio-Informatics Solution Code Generator Framework TCS Experience Based KM


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Business Environment

[8]

Todays business environment makes it imperative that the dynamic infrastructurerequirements align with the business needs.

Several global macro - economic challenges continue to cast a shadow on astate of strong business demand. Some of the key reasons are estimated slow GDPand employment growth as well as soaring levels of public debt in mature marketslike USA and Europe; and high commodity prices, inflationand currencymovement dampening growth in emerging markets like India, China and Brazil.

Companies Tagline Experience Certainty

Global business, however, is better experienced to deal with such roadblocks.Companies are re-starting several initiatives to embrace growth by aggressivelyadopting new technologies like cloud computing, mobile computing, informationanalytics, green supply chains and social media.

Coping with Uncertainty and changing markets is very essential and need of thehour with TCS operating in Highly Uncertain environment(Complex + Unstable)

Need for Differentiation and Integration


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PEST Analysis

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Political Political Stability Subsidies, Benefits offered by Government of India towards IT sector US government not giving tax benefits to projects outsourced outside US

Economic Currency Fluctuations Recession(Attrition) Cost attractiveness as compared to other countries Domestic and Global IT Spending

Social English Is widely spoken Language in India Technical education Large % of working population

Technological Emergence and acceptance of new IT technology Internet backbone


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Structure(Past vs Present focus)

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Past Structure The company had initially followed a functional structure. TCS into multiple, smaller operational units

consisting of 3,000 employees, each pursuing the best possible growth in their individual domain. TheStructure gradually had a potential loss of agility in an organisation that has outgrown its structure andorganisation being not able to focus on the right sectors for future growth.

Limitations

This separation lead to several barriers in communication and overall cooperation and coordination.

Individual focus rather than a company focus

No structure in the way things ran in the company, all processes specific to function

The functional specialization did not allow managers in that area to have a broad perspective on thecompany or other specific areas.


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Structure(Past vs Present focus)

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Present Structure

Global Network Delivery Model

A global presence caters for spatial differentiation that is Geographic spread of functions, units,employees

A global presence implies that the organization has access to to deliver services to itscustomers at an optimal cost, typically a mix of costlier 'on-site' resources combined withcheaper 'offshore' resources.

Round the clock for its customer service provide some degree of 'risk-proofing' a customer


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Global Network Model

[12]

GNDM positives

Coping with changing business environment(Technology , Recession , Markets , People)

Encouraging Quality and Customer focus

Focus on Cross Technology Expertise

Matured Processes

Deep and broad Skills


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Systems

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TCS operates in an industry which is people intensive. With a headcount of morethan 2 lakh employees it is very essential to have an appropriate system and acontrol structure

Approach adopted

Mix of Organic and mechanistic management

Centralized decision making(negative)

High formalization(positive)

Collaborative Team work(positive)

Strong Horizontal and vertical integration(Service Units vertical integrator andPlatforms Horizontal integrator)

Specialized roles


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Organizational Culture

[14]

Induction Program Soft skill program Technical competency building Videos of incidents related to work ethics Overview of Tata Company

Inside the Organization Diversity at work Open Door Policy Learning by Sharing

Entertainment Fun@Work Maitree TCS got Talent

Family Day

Core Values The TATA brand and its social responsibility Technical competency building Videos of incidents related to work ethics Overview of Tata Company

Benefits Medical Benefits Assistance for higher Education Extended leaves Work life Balance Flexi time


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Organizational Culture

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Virtual Team Culture

Networked teams Project development teams Service teams

Increased productivity Extended market opportunity Knowledge transfer

Rewards and Recognition Program Moved from conventional pay-for-time methods to a combination of pay-for-knowledge

and pay-for-performance plans Star of the month On the spot Awards TCS gems

Workforce Retention and Motivation

Career Development(Role based systems) Rewards and Recognitions Associate friendly HR activities Performance based incentives

Analysis


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Knowledge Management@TCS

[16]

Why KM? A growing enterprise faces the daunting task of managing an exponential

growth of information and knowledge that is often scattered, sometimesembedded, and possibly residing in many silos.

Knowledge Management (KM) helps overcome these challenges bydelivering tremendous value and providing a solution to enable every personin the organization to access knowledge with the anything, anywhere,anytime paradigm. To attain business benefits derived from KM, enterprises

need a strong Knowledge Maturity Model that addresses the three pillars ofKMPeople, Process, and Technology.


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Knowledge Management

[17]


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Impact

[18]

Impact of Organizational structure

Cost EffectivenessOrganized WorkforceBetter Command and ControlCustomer SatisfactionFlow of information

Impact of Culture

Boundaries between parts are minimizedWorkforce RetentionEmployee Satisfaction

Impact of implementation of Knowledge Management

Greater operational EfficiencyBetter product and service qualityCustomer SatisfactionUse of available knowledge rather than reinventing the wheelInnovation


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Growth Plans

[19]

Geographic Spread

Analyzing the Geographic spread(US ,EU and UK) constitutes 79% of its total market so thereis heavy reliance on these markets . TCS is trying to diversify its spread with now paying

special attention to domestic projects and projects in niche market

Industry Spread

Industry spread is heavily concentrated on BFS ,Manufacturing and Telecom with about 72%

belonging to these two sectors. Off late TCS have been pushing to enter into new untappeddomains so that the presence of technology can be taken elsewhere

.

North America

54%

UK

15%

Europe

9%

India

9%

Asia Pacific

7%

Iberoamerica

4%

Middle East &

Africa

2%


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[20]

.

Company's Performance

TCS is the market leader when compared to other IT companies in India

A comparative analysis of TCS vis a vis Infosys

Sales: TCS scores over Infosys here. In fact, as you can see in the chart below, theformer has even extended its lead over the latter in the past few quarters


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[21]

.


Net Profit growth :The story of sales growth repeats here as well, with the first twoyears going to Infosys and the next three to TCS. In fact, except for the latestquarter, Infosys never seemed to regain its touch that it lost when the global crisisstarted impacting the Indian IT industry in early FY10


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[22]

.


No. of Employees:The Indian IT industry has a linear business model. What this means is that if youwant to grow your sales, you must hire more and more employees. As such, like its sales trajectory,

TCS has outperformed Infosys on this front as well. It has, in fact, extended the lead in employee

addition in the recent quarters, which somewhat signifies the managements positive outlook on the

future


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[23]

.


Revenue per Employee:This is a very important metric for IT companies, as this indicates employee

productivity. Infosys has been an outperformer on this front over the past three years.


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[24]

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Company's Stock Price(Past 5 yrs. Analysis)


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[25]

.

Key Competitors

Top Competitors Of TCS:

Infosys HCL IBM Sapient Corporation Wipro Cognizant Technology Solutions Accenture

Cap Gemini

All these companies are into full fledged services and work on same domain andsimilar business model so key differentiation becomes a very critical factor

Key strengths of TCS as compared with its listed peers

Strong vertical presence

Operational Efficiency Comparably Low cost and High quality services offered Good spread of service offerings Client count and profile Reputation and past experience(Repeat business) Employee friendly organization(Attrition rate lower as compared to other IT

companies)


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SWOT Analysis of TCS

[26]


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Challenges(Concerns of Top Management)

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1. Increased Expectation: Customers are trying to look at TCS as partners thanvendors.

2. Demanding more flexibility. Looking more skills at one place. More focus onavailability of resources

3. Competition from SE Asian countries like Philippines, China, Vietnam especially inthe BPO sector.

4. Socio Cultural factors: New geographies attracting IT major TCS are East Europe,Latin America and Brazil, Russia, India and China (Bric nations) and, as aconsequence, posing challenges on account of multi-cultural environment andlanguage barriers.

5.Dependence on specific markets and sectors

6.Technical competence and changing environment

7.One of the most important crises concerns the human resources aspect

.


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Recommendations

[28]

Continue with and strengthen the existing structure

Expect to see the landscape continue to consolidate. Clients will seek to cut costs and focuson fewer provider relationships as the economy worsens. TCS should take this opportunity toimprove your market positioning.

TCS must provide diverse services to refrain from being over-dependent and increasing

exposure to the vulnerabilities of few sectors (BFSI) /geographies (USA).

Consolidation and strategic acquisitions are essential for future growth of revenues. We feelthat a big wave of consolidation in IT industry has just started. The HP-EDS merger (one of thebiggest ever merger in this industry) is testimony to this. TCS should gear up for suchopportunities which are strategic fit for thembe prepared.

TCS has rightly placed SMB (Small and Medium Businesses) as a separate strategic unit,which should be focused aggressively. They should also focus consulting practice on thesame radar.

TCS (rather all Indian IT players) should focus more on increasing their IP (IntellectualProperty) assets.

Innovation needs to be done in three areas that are connected to the informationtechnology industry of India such as business models, ecosystems and knowledge

.


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References

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1. Tata Consultancy Services www.tcs.com (Investors section)2. Forrester reports www.forrester.com3. Gartner reports www.gartner.com4. IT-ITeS Market & OpportunitiesIBEF (India Brand Equity Foundation) report5. Tata Consultancy ServicesA Company Profilewww.datamonitor.com6. Newspaper Mintwww.livemint.com

.


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T H A N K Y O U

Ankit Kumar Bharat Krishnan Mudit Dayal Nikhil Thapar Ravissant Markandey(WMP08004) (WMP08008) (WMP 08023) (WMP 08024) (WMP 08037) [30]

119166466 organizational structure tcs

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