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1 | TCS: The Indian MNC
Acquisitions, large deals, entry into new global markets, help TCS move toward a 2010 dream
Thursday, August 17, 2006

The year started for TCS with the high profile visit to its Bangalore campus of Chinese premier Wen Jiabao.  For a company that wants to be a Top 10 global SI by 2010, last year was a landmark. TCS focused on bringing in new domain expertise, access to new markets, and reduce dependence on US.

After missing the BPO bus earlier, it made up ground last fiscal through its acquisition of Comicron in Chile, and formation of Diligenta, a JV with the Pearl Group of UK. TCS started operations in Portugal, and tied up with companies like SAP, Microsoft, Cognos, Instantis to address emerging markets including South Africa, Latin America, Eastern Europe, and China. To strengthen European business, an ex-CIO of SAP was taken in.

The acquisition of Sydney-based FNS, on the other hand, enabled TCS to start a JV with SBI called C-Edge Technologies, and become a total solutions provider for the global banking industry.  And the acquisition of Tata Infotech, which was a strong SI in telecom and defense, helped TCS remove business overlaps.

Highlights

  • Bagged $400 mn five-year ABN AMRO apps support contract with Infosys

  • Landmark five-year Rs 1,000 crore Tata Tele IT infrastructure management deal spread over five years


l Start-up Year: 1968 l Products & Services: Software Services, IT Consulting, BPO l Branches: 162 l Address: 11th Floor, Air India Building, Nariman Point, Mumbai 400021 l Tel: 67509999 l Fax: 56689455 l Website: www.tcs.com

Strengths

  • Skills of CMC and Tata Infotech help win outsourcing deals

  • Consulting emerged as a lucrative business stream generating $65 mn

Weaknesses

  • Margin vulnerability to growing wage pressures

  • New customers account for just 5% of its revenues

In India, e-Governance was a big thrust. TCS implemented MCA-21, India's largest e-Governance initiative by the Ministry of Company Affairs, and the Andhra Pradesh Rural Employment Guarantee System. To mitigate attrition challenges that IT companies in big Indian cities are facing, TCS unveiled plans for two large campuses in Gandhinagar and Pune.

S Ramadorai, CEO & MD

S Mahalingam, CFO
N Chandrasekaran,
head, Global Sales & Operations
S Padmanabhan,
head, HR
Phiroze Vandrevala,
head, Global Corporate Affairs

To pep up the board, TCS appointed Prof Clayton M Christensen, an expert on disruptive technological innovation. Overall, this $3 bn software supremo is making a mark as a true Indian MNC.

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