Marketing Strategy - TCS

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Marketing Strategy - TCS

  1. 1. Marketing Strategies – Tata Consultancy Services SMBA – 16 Mitul Parikh Nitin Chaudhari Meena Salvi Mohini Patwardhan Ramdas Tarkar Chetan Poojari Phinsy Chariyath Rahul Aiah
  2. 2. VISION, MISSION & VALUES… To create value by leveraging our co-innovation network in a manner that has an impact on the customers ecosystem To be among the top 3 companies worldwide by 2011; Culture of accountability, delivering certainty to customers. Their values – integrity, leading change, excellence, respect for the individual, and fostering an environment of learning and sharing.
  3. 3. BACKGROUND… It began in 1868 as the "Tata Computer Centre", for the company Tata Group whose main business was to provide computer services to other group companies. One of TCS first assignments was to provide punched card services to a sister concern, Tata Steel (then TISCO). In the early 1970s, Tata Consultancy Services started exporting its services. In 1981, TCS set up Indias first software research and development centre, the Tata Research Development and Design Center (TRDDC) in Pune. 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. On 9 August 2004, TCS became a publicly listed company.
  4. 4. AS OF NOW POSITION… Tata Consultancy Services Limited (TCS) is a global IT services, business solutions and outsourcing company It is the second-largest India-based provider of business process outsourcing services. In 2011 it has billed a total revenue of $7.21 billion. Total employee strength is 2,26,751. Key People: Subramaniam Ramadorai(Vice Chairman), N. Chandrasekaran (CEO & MD)
  5. 5. AS OF NOW POSITION… TCS has been ranked #20 in the list of top companies, by Fortune India 500. TCS has 142 offices across over 47 countries and generates around 20% of India IT exports. TCS Maitree has been a unit in TCS which is developing itself bigger than the organisation.
  6. 6. Revenue Breakup
  7. 7. ETHICS & TCS  TCS has its own Values and principles defined for employees.  It was aiming global so the ethical values defined are across all Tata groups.  They have around 25 code of conducts maintained.
  8. 8. ETHICALLY SOUND  A senior executive at the Vice President level is designated as Ethics Counselor.  The LECs and the corporate ethics team and its responsibility.  Policies related to the TcoC are reviewed from time to time and changes if any are communicated appropriately across the Company.  At the Board level, the Ethics and Compliance Committee oversees TCS’ compliance to the Codes of Conduct to be followed by the Directors, Officers and other employees.  Monthly Reports are sent to the Committee on matters relating to the Insider Trading Code and the CoC.
  9. 9. CORPORATE STRATEGY…Strategic Technological Changes.
  10. 10. Innovative Strategy
  11. 11. •Consulting to products, providing solutions•TCS is also developing •Built a and implementations to support.solutions in Healthcare, customer- 25 per cent of TCS’ revenues came fromRetail and Government newer services like BPO, Infrastructure, centric, domain-sectors. Assurance and Asset Leveraged Solutions, led organization, reflecting the•Targeting Small andmedium enterprises backed by effectiveness of this strategy.and rural and excellence incooperative banks of executionIndia TCS’ unique Global Network Delivery Customer Model (GNDM™) Centricity enables a seamless•Acquisitions delivery of services from a network ofthat are delivery centersstrategic in distributed across India,nature Non Linear Full Services China, Europe, Business•Strengthen models Capability North America and Latingaps in services Strategies for America long term Teams working inportfolio sustainable geographically•Easier market growth distributed deliveryaccess in specific centers can collaboratesegments, on projects,techonlogy with seamless hand-offsexpertise and and leverage all the Strategicspecific domain. Acquisitions GNDM organization’s assets, ensuring a ‘One Global Service Standard
  12. 12. Career DevelopmentTCS caters to the employees aspirations, motivating employees to realize their potentialand providing them with a predictable roadmap and necessary tools for personal growthto retain employees.Personal Development Planning forms a central part of the annual appraisal and goal-setting process.Even focuses on soft skills development including team building, innovative and creativethinking, cross cultural adaptation etc.TCS keeps employees engaged and motivated by providing opportunities forcontinuously upgrading competencies by rotation across roles, technologies, customerand industries and geographies.TCS has several schemes for recognizing and rewarding employees.
  13. 13. Employee engagement and motivationEmployee retention and motivation are greatly facilitated through closer engagementwith employees and by fostering a spirit of community, through shared activities outsideof work.Developed forum for employees and their families to participate in and develop sense ofcamaraderie is Maitree, which harnesses their energy and enthusiasm to undertakeactivities for the betterment of the local communities and the environment.TCS actively supports athletic and sporting activities at the national, regional and locallevel and encourages employees to participate.Occupational Health and SafetyTCS is committed to provide its employees a safe and comfortable work environment,going beyond accidents, injuries and occupational health hazards, to general thephysical and mental health and well- being of associates and their families.TCS have implemented an Occupational Health and Safety Management System(OHSMS) and have been recommended for enterprise wide certification.TCS have a Hazard Identification and Risk Assessment process (HIRA) to identify andanalyze the levels of risk associated with the various activities at each the facility.
  14. 14. Supplyside Sustainability Senior Level 3.7% Middle Level The total number of employees 31.9% including subsidiaries as at March 31, Junior Level 2011 was 2,54,378 (compared to 64.4% 1,60,429 on March 31, 2010). The headcount is 140,619 on a standalone basis (compared to 126,150 Breakup of workforce by employee category on March 31, 2010). 40-50 years, >50 years, 2.9% 0.9% TCS has highly educated workforce 30-40 years, whose technical skills are much valued 19.9% globally and consequently. It is a predominantly young workforce, with an average of ~28 years. < 30 years, 76.3% Breakup of workforce by age
  15. 15. Diversity in talent pool TCS is an Equal Opportunity Employer who has been able to expand the talent pool in terms of gender, geography and academic discipline. The growing diversity in our global workforce is reflected by the continuing increase in the number of female employees and non-Indian employees. Non-Indian employees represent 80 different nationalities. TCS has set up onshore or near shore delivery centers where engineering talent is easily available or where there is language barrier.
  16. 16. PERFORMANCE CRITERIA  Volume growth of 17.4% .  Gross Margin growth of 46.2%.  EBIT margin of 26.5%  Gross headcount addition of 38,063  Net headcount addition of 16,668
  17. 17. MERGERS AND ACQUISITIONS – IDENTIFYINGNEW MARKETS  TCS is set to report earnings growth of 16.5 percent in the year 2010-11 thanks to a healthy deal pipeline.  TCS, part of the salt-to-software Tata conglomerate, is the first private-sector company to overtake Reliance in market value. (Dec 30, 2011).  TCS was the first to start the BPO Industry.
  18. 18. ACQUISITION OF CITI GROUP TCS has acquired Citi Global Services on 8 Oct 2008. Value of the deal was $505 mn. After the acquisition of Citigroup Global Services Ltd (CGSL), TCS will be the second-largest BPO player globally, after IBM. Citi has also signed an $2.5 billion deal through which TCS will provide process outsourcing services to Citi and its affiliates over nine-and-a-half years. This will be provided through CGSL, the release said.
  19. 19. ACQUISITION OF PEARL GROUP TCS has acquired Pearl Group in Oct 2005. Value of the deal was $94.7 mn. Pearl Group is one of the largest insurance provider in United Kingdom. With this contract, TCS will now manage some eight million policies in UK using the same platform, increasing the company’s share of revenues earned without having to hire additional staff.
  20. 20. OTHER ACQUISTION Comicrom was acquired in Nov 2005. It is a Banking BPO in Chile. TCS Management was acquired in Nov 2006. The company provides IT Services in Australia. Value of $ 13 mn. Phoenix Global Solutions was acquired in May 2004. The deal was of $ 13mn.
  21. 21. SYNERGY WITH THE MASSES…Corporate Social Responsibility: TCS supports local communities and society at large through (i) IT for community welfare, (ii) TCS-Maitree, our volunteer corps consisting of TCS employees and their families and (iii) the funding of philanthropic activities. The key focus areas for TCS CSR work are: Health, Education and Environment. The programs we launch and the communities we work with are decided based on the needs of those communities In addition to benefiting the targeted community, our CSR activities have the added benefit of giving our volunteer corps meaningful projects into which they can channelize their altruism. Other CSR activities as TCS funded the restoration of some 274 old and rare books totaling over 100,000 pages in theUniversity Library in Mumbai. TCS encouraged women’s empowerment, the program has now expanded to children’s education and development of local infrastructure.
  22. 22. TCS MaitreeTCS Maitree:• Maitree was started with an objective of bringing TCS associates and their families closer and making them feel a part of the TCS extended family• Soon after, with a view to carry on the TATA tradition of enabling the community, the scope of Maitree was enhanced to include socially relevant activities and endeavors.
  23. 23. TCS MaitreeMaitree and the TCS Community:• Maitree was established with an intention to strengthen the bond between TCS employees and their families, as well as provide a platform to encourage hidden aspirations and talents.• Workshops on theatre, yoga, origami, flower arrangement, chocolate making, and a host of others have allowed the employees to learn and know about things they always wanted to.• All in all, Maitree provides everyone at TCS the opportunity to establish relationships that extend beyond work and thereby, help build bonds that makes work so much more fun.
  24. 24. TCS MaitreeMaitree - Even beyond the TCS Community:• In addition to working towards bringing our associates and their families closer, Maitree also strives to enable the development of the society.• Of the projects TCS have undertaken include working with the differently-abled, aiding under-privileged children across various schools in Mumbai, and helping rural community in Vazapur.• Many programs initiated by Maitree, like employment opportunities for the differently-abled, HIV/AIDS sensitization, peer education, Green Audits to check the excess consumption of energy resources have now been accepted as best practices by the organization.
  25. 25. TCS Maitree• With the belief that people with disabilities offer incredible reserves of untapped potential and an alternative talent pool, TCS-Maitree has recruited more than 30 differently-abled people in various branches of TCS.• The following are some of the roles in which the visually impaired persons are working in TCS: – Infrastructure Services Management – BPO processes – Learning & Development coordinator – Human Resource Manager – Global Helpdesk – Accessibility testing
  26. 26. TCS MaitreeRural Development:• Mid-day meal scheme for Balwadi kids• Computer literacy program• A state-of-the-art science lab• TCS-Maitree launched the WEP (Women Empowerment Program) where the women of the village were taught basic arithmetic and created awareness in health and hygiene.• More than 25 women from three villages in the area have been trained in embroidery, stitching, and other textile craftwork over the last one year with help from the Womens India Trust.• A new Gram Vikas Abhiyaan Kendra was recently inaugurated to facilitate income generation for the women.
  27. 27. TCS MaitreeTCS-Maitree has also made strides in the area of health, conducting HIV/ AIDS sensitization sessions as well as health check-up camps for the villagers and school children:• Thalassaemia Drive• HIV AIDS awareness program• The highlights of this initiative are: – Commemorating World AIDS Day – Red Ribbon distribution at all offices – Online Quiz for creating more awareness – Removing myths and misconceptions through articles – Peer Educator Program - Communicating with associates in their own language, through their peers
  28. 28. TCS – GO GREEN TCS is committed to optimize its resource consumption, minimize its ecological as well as carbon footprint with the ultimate objective of decoupling business growth and environmental impact. TCS implemented Environment Policy in December 2009 to formalize key activities designed to minimize our environmental footprint and mitigate the impact – in terms of the resources consumed as well as our outputs. The policy is based on the following key pillars:  Climate change mitigation through commitment to reduce GHG emissions and corresponding carbon footprint  Green IT  Green Procurement  Reduce, Reuse, Recycle  Resource Efficiency  Green Infrastructure – Green Buildings
  29. 29. TATA CONSULTANCY SERVICES Environmental Target and Performances
  30. 30. TATA CONSULTANCY SERVICES Greenhouses at Yantra Park, Deccan Park and Shollinganallur; use bio-fertilizers such as vermicompost and sludge from our bio-digester plant and sewage treatment plant. Kalinga Park, Bhubaneswar
  31. 31. TATA CONSULTANCY SERVICESPaper Recycling Initiatives: Shredded paper waste generated from TCS offices is sent to NGOs for recycling, instead of to municipal landfills. Many of these NGOs make cardboard files and notepads using the waste paper and supply those back to the organization. Yantra Park facility in Mumbai, shredded waste paper is recycled through an NGO named Stri Mukti Sangathana, working for the betterment of economically deprived women. They purchase the waste paper for a nominal amount and supply notepads made of recycled paper. In 2009-10, 32 sites adopted the practice and sent 69 tonnes of shredded paper for recycling.
  32. 32. TATA CONSULTANCY SERVICESEmployee Engagement: Employees’ buy-in is essential to the success of Environment Management program at TCS. TCS Environmental Policy aims to create greater awareness among employees on pressing issues like pollution, deforestation, global warming, depletion of non-renewable resources, e-waste disposal and bio- diversity awareness. Recruits are trained on TCS’ Environmental Policy during the Initial Learning Program (ILP). In 2009-10, over 100,000 associates and contractors participated in the classroom sessions, floorwalks, awareness campaigns and web based training.
  33. 33. TATA CONSULTANCY SERVICESE-waste management: The E-waste generated at the various TCS center includes Computers, Monitors, Servers, and allied hardware. TCS has an internal E-waste Management policy based on WEEE directive and the Government of India’s draft e-Waste Rules 2010 that mandates disposal of e-waste through specific e-waste handlers and recyclers approved by the Government of India’s Ministry of Environment and Forests (MoEF). In 2009-10, 5,879 pieces of equipment from all centers, amounting to 100% of our e-wastes, were disposed of through authorized handlers / recyclers. In addition, another 1,067 computers which were deemed obsolete for TCS’ purposes but in full working condition, were donated to government-run schools which often lack such equipment. Recipients of such donations are advised to return the hardware to TCS or to authorized recyclers once they reach end-of-life, for safe disposal.
  34. 34. Porter’s Five Forces Analysis of TCS Threat of New Entrant Bargaining Power of Buyers-Low capital requirements -Very high-Large value chain -Large number of IT companies-MNC’s -Huge decline in IT expenditure. Rivalry among competing firms in industry -Strong competitors -Low cost -High industry growthBargaining Power of Suppliers Threat of Substitute Products-Slowdown, the job cuts, and the layoffs -High-Demand and supply of IT professionals -Other offshore locations-Availability of vast talent pool -Price
  35. 35. SWOT Analysis of TCS STRENGHTS WEAKNESS .Good working environment. -Weak management team .Effective communication. .Cost Advantage -Weak damaged brand .Market Share Leadership .Strong Brand Equity • Commodity products, services .Pricing Reputation OPPORTUNITIES THREATS• Innovation • Competition• Product and service Expansion in • Converging IT salaries advanced analytics • Strong S/W venders sales support • Global Economic dislocations in client markets hit India disproportionately.

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