History of Tata Consultancy Services (TCS)
Incorporated in 1968, Tata Consultancy Services (TCS) was initially a division of Tata Sons. It was corporatised as a separate company on April 1, 2004. TCS is a leading global IT services, consulting and business solutions organisation that offers transformational as well as outsourcing services to global enterprises. Being a part of the Tata Group, TCS has more than 6,14,000 well-trained consultants in about 55 countries. The company is headquartered in Mumbai and has a manufacturing facility at Mapusa, Goa. TCS released its IPO in July 2004 and got listed on NSE and BSE on August 25, 2004.
TCS runs several government projects in India, including the Passport Seva Kendra, India Post, and many defence and agricultural mandates. In 2023, the company bagged another government project, i.e., the enhancement of the Government e-Marketplace (GeM), which is a one-stop solution for state government, central government and Public Sector Undertakings (PSUs).
The company is well-established all around the world, including India, Latin America, North America, the United Kingdom, Asia-Pacific, Continental Europe, Africa and the Middle East. Due to its proactive approach to climate change and award-winning community engagement efforts worldwide, TCS gained a place in indices like the FTSE4Good Emerging Index and MSCI Global Sustainability Index.
In an independent survey conducted by Whitelane Research, TCS secured the top position as the most preferred IT service provider for customer satisfaction in Europe, with input from over 1,800 CXOs. TCS earned a place on Forbes' list of America's Best Large Employers, based on an extensive, independent survey of employees across the United States.
Additionally, TCS received the prestigious title of Global Top Employer for the eighth consecutive year, with further recognition as the Top Employer in regions including North America, Asia Pacific, Latin America and Europe. In the Kantar BrandZ Top 100 Most Valuable Global Brands, TCS was the only Indian brand in the Top 50 in 2022.
Business Segments
TCS caters to the diverse needs of all key executives in the C-suite. The company has deep domain expertise in various industry sectors and a comprehensive range of offerings, including:
- Consulting - Under this vertical, they offer transformative business strategies focused on purpose, integrating new enterprise strategies, technological innovation and much more for the businesses.
- Cloud - Under this vertical, the company offers cloud migration, transformation, adoption and security services.
- Cognitive Business Operations - The company uses cognitive business to change the operational stack of a company, including business processes and IT infrastructure.
- Cybersecurity - The company takes a holistic cybersecurity strategy and works toward risk mitigation. They offer security as a service under this segment.
- Data and Analytics - Under this segment, the company helps businesses make use of the data and improve their business outcomes.
- Enterprise Solutions - The company creates individual enterprise applications for businesses.
- IoT Digital Engineering - The company provides strategic advisory services under this segment.
- Network Solutions and Service - They offer network solutions and services that can help businesses to scale using new technologies.
- Sustainability Services - The company has 200 offerings that can help a business in meeting its sustainability goals.
- TCS Interactive - The company helps in creating harmony across technology, design, and data, which can lead to B2C, B2B, and D2C customer experiences across channels, services, and touchpoints.
As of June 30, 2023, there are more than 50 subsidiaries under TCS, which include:
- TCS Foundation - This is a philanthropic arm of TCS that works towards several causes, including literacy as a service, youth employment programs, etc.
- APTOnline Limited - This company is a joint venture between TCS and the state governments of Telangana and Andhra Pradesh. This company is involved in developing custom software applications.
- MP Online Limited - This online platform from the Government of Madhya Pradesh, Madhya Pradesh Electronics Development Corporation (MPSEDC) and TCS offers B2C and G2C services to the common man.
TCS also partnered with several notable companies like Adobe, Cisco, Dell, Google, IBM, etc.
Key Personnel of Tata Consultancy Services
Krithivasan, Chief Executive Officer and Managing Director
Krithivasan has been with TCS for more than 30 years. Before joining TCS, he was the Global Head of the Banking, Financial Services, and Insurance (BFSI) Business Group. He did his B.Tech from the University of Madras and holds a Master’s degree from IIT Kanpur.
Corporate Actions
Bonus Shares: TCS declared 2 bonuses:
- With a ratio of 1:1 and an ex-date of May 31, 2018.
- With a ratio of 1:1 and an ex-date of June 16, 2009.
Buyback: In 2022, the company announced a buyback of up to 4,00,00,000 equity shares for an aggregate amount of up to ₹18,000 crore.
Management Outlook of TCS
- TCS is focusing on organisational restructuring aimed at enhancing its customer service capabilities. It has set a target of achieving $50 billion in revenue by 2030.
- TCS plans to expand its internal startup incubation program, aiming to double its capacity to accommodate 10-12 projects. The program is about generating new products and services like drones rather than acquiring innovative companies.
