Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global business, ensuring a level of certainty no other firm could match. TCS provides a consulting, integrated portfolio of IT and IT services delivered via its unique Global Network Delivery Model. TCS’s ability to deliver high-quality services and solution is unsurpassed. It is the world’s first organization to achieve an Enterprise-wide Maturity Level 5 on both CMMI and P-CMM.
SWOT Analysis Strengths :Global presenceStrong financial performanceGlobal Network Delivery ModelExperience certainty strategyEmployee management skillWide range of product and services with high quality | Weakness:Silence marketingLack of focus on domestic market | Opportunities:Strong vertical presenceEfficiency delivery centerLow attrition rateFixed price projectsGood spread of service offerings | Threats:Branding and MarketingCulture differenceIncreasing employee costs | At most IT organizations today, they are increasingly looking at outsourcing operations. Adopting this strategy, allows these organizations to focus on core competencies and respond with nimbleness to the ever-changing market and business needs. TCS is the one which simplifies its services offerings into outsourcing. According to Exhibit 1, the core outsourcing part has been increased by 53.21% from 2004 to 2010. TCS studies client’s business processes and identify how to provide innovative solutions that will best fit their business needs. Additionally, in order to help customers achieve new levels of efficiency, TCS BPO offers innovative and flexible business models based services and outsourcing. TCS offers a full lifecycle of services including technology services known as application development and maintenance, enterprise solutions, assurance, business intelligence and five “growth engines”. What TCS benefits from the outsourcing is up to 30% reduction in total cost of operations.
International corporate level strategy which focuses on the scope of a firm’s operations through both product and geographic diversification is used by TSC as well. TCS believes that its global foot print enables it to service and support existing consumers in a number of important markets from locations closer to clients via its Global Network Delivery Model. Near-shore centers such as Phoenix in the US with small scale, regional delivery centers such as Hungary and Brazil with medium scale and Global delivery centers such as India and China with very high scale and matured processes are offered to satisfy customer’s requirements. Through the international strategy, TCS has increased its market size. According to the news form TCS website, TCS was ranked 10th among IT services.
Alternatively, TCS could pay much more attention on domestic IT services when keeps growing in worldwide market. And besides global strategy, it could gain market shares by acquisitions or alliance with other powerful IT corporations. In addition, from the case, the average age of TCS staff was 28.2 years old and 75%of workforce was male. TCS could think about employ much more women and more employees who come from different countries. Because of the diversification will strength the innovation and competencies.
Here are three recommendations to TCS. The first one is keep growing in worldwide IT services. The reason is that the needs of IT products and services are still increasing and TCS which has a large transformational full services outsourcing company has a lot of potential to gain larger market shares. And from the global market, TCS would get not only revenues and also reputation and influences. In order to achieve this goal, it should do the second recommendation. That is improving its branding and marketing competencies. On the one hand, TCS should develop a specific advertisement division which launches ads for TCS during fixed periods to the world. On the other hand, TCS should provide sponsorship with related events that will help establish reputation. The third one is controlling the costs of employees and spending more on R&D. IT services require fast innovation. In order to keep its leadership, TCS should strength its innovation part and launch better products and services to customers.