Why TCS (Tata Consultancy Services) is Successful?

Global Network Delivery Model

Why TCS is successful?

TCS developed this unique IT services delivery system to ensure that its customers obtained IT services that best fit their needs, with high quality and minimum costs. Service locations were virtually connected by the latest telecommunication infrastructure to offer the best services to clients without limitations in terms of countries, languages, time zones, and cultures. The system also provided reliability and redundancy that could handle unforeseeable disturbances, such as natural disasters or political unrest. TCS established offshore centres located in India and other countries. These centres maintained its strong presence at the respective customer's locations, providing the best quality and cost-efficient IT services For example, in 2012, TCS and MC established Nippon TCS Solution Center in Tokyo with the capital cost of $4.38 million being shared at 60 per cent for TCS and 40 per cent for MC for a near-shore delivery in Japan. It combined MC's unrivalled local knowledge and supports with TCS's exemplary global IT knowledge to offer a wide range of specialized IT services to fulfill the needs of Japanese corporations.

Natarajan Chandrasekaran was the chairman and the chief executive officer of TCS from 2009 to 2017. He also chaired the boards of several companies in Tata Group. Under his leadership, in FY 2015-16, TCS generated revenues of $16.5 billion, being the largest and most valuable private sector employer in India. Chandrasekaran had embedded the customer focus and innovation culture into TCS. His leadership was praised by both corporate and community organizations.’In 2016, he was succeeded by Rajesh Gopinathan, TCS's former chief financial officer and vice president. Gopinathan had helped Chandrasekaran build TCS's e-business practices and had run its strategy office. Chandrasekaran relied on Gopinathan to execute his vision. Gopinathan maintained that TCS build up talent and technologies in-house rather than acquiring them from outside the company. He emphasized respect for the team. He built a strong relationship with customers and employees, and retained all senior executives for a smooth management transition.

In July 2014, Chandrasekaran merged MC's subsidiary IT Frontier Corporation (an IT service subsidiary of MC), Nippon TCS Solution Center Limited (a joint venture between MC and TCS Japan), and the existing TCS Japan (the Japanese arm of TCS) together to be one entity, TCS Japan, and appointed Amur Lakshminarayanan to head and grow TCS Japan in the large and unpenetrated Japanese market. Upon joining TCS in 1983, Lakshminarayanan had a track record of building businesses from the ground up. He had built the UK business almost from scratch and had led the emerging high-technology media and entertainment division to contribute over 10 per cent of TCS's overall revenues. In Japan, however, the joint venture with MC provided a platform that had both advantages and challenges. Lakshminarayanan had to bring his Japanese workforce into the TCS way of doing things.

According to Lakshminarayanan, the insularity of the culture was a major barrier for India's IT businesses to enter the Japanese market. However, TCS Japan took steps from town hall meetings to translate internal magazines and welcome the new Japanese employees. Lakshminarayanan explained.