A

PROJECT REPORT ON

MANAGEMENT INFORMATION SYSTEM

IN TCS

(TATA CONSULTANCY SERVICES)

Guided by: Submitted

by:
 ACKNOWLEDGEMENT

"Accomplishment of any task necessarily depends upon the

willingness and enthusiastic contribution of time and energy of
many people."

The preparation of this project report has been highly rewarding

and learning experience for me as it has broadened my outlook
and given me a close and intimate view of the TCS.

I take this humble opportunity to express my special thanks and

portray my deep sense of gratitude to my project guide
……………………………….. whose invaluable guidance and supervision
in the project infused in me great inspiration and confidence in
making this project in right earnest. Her masterly guidance from
time to time made the study interesting and meaningful.

She was always there for my help and doing away all the
difficulties and confusions that arose during the project period. She
also helped me to understand what was actually required from the
project and what was needed to be done.

I would like to thank our respondents for their kind response and
their precious time they provided me to carry with my project.
At last I would like to pay my word of thanks to my family
members, all my teachers and my friends who have indebted me
by supporting and encouraging me to go on with the project easily.

INFORMATION SYSTEM
Information system is concerned with processing the raw facts into
information and transferring this information to the user. It also
takes feedback from the users so that input can be given.

AN INFORMATION SYSTEM CAN BE MANUAL OR COMPUTER

BASED.

MANAGEMENT INFORMATION SYSTEM

Management information system is a combination of computers
and people that is used to provide information to aid in making
decisions and managing a firm. It is all about information, how it is
collected, stored, retrieved, and manipulated.

MIS professionals make sure that the right information gets to the
right people at the right time, so they can do their jobs; they
spend most of their time on computerized information handling

MIS affects all areas of business

– Manufacturing

– Accounting & Finance

– Human resources
 – Marketing

– Top management

AFFECT OF MANAGEMENT INFORMATION

SYSTEM IN AN ORGANISATION
Over the last few years, the information systems have greatly
changed the ORGANISATIONAL ECONOMICS AND INCREASED THE
POSSIBILITY OF ORGANIZING WORK.

ECONOMIC IMPACT

• IT changes both the relative costs of capital and the costs of

information.

• Information systems technology is a factor of production, like

capital and labor.

• Transaction cost theory: Firms seek to economize on the cost

of participating in markets (transaction costs).

• IT lowers market transaction costs for firm, making it

worthwhile for firms to transact with other firms rather than
grow the number of employees.

• Agency theory: Firm is nexus of contracts among self-

interested parties requiring supervision.
 • Firms experience agency costs (the cost of managing and
supervising).

• IT can reduce agency costs, making it possible for firms to

grow without adding to the costs of supervising, and without
adding employees.

ORGANISATIONAL AND BEHAVIOR IMPACT

IT FLATTENS THE ORGANISATION

• Facilitates flattening of hierarchies

• Broadens the distribution of timely information

• Increases the speed of decision making

• Empowers lower-level employees to make decisions without

supervision and increase management efficiency

• Management span of control (the number of employees

supervised by each manager) will also grow

POSTINDUSTRIAL ORGANIZATIONS

• Authority increasingly relies on knowledge and competence.

• Information technology encourages task force-networked

organizations.

Virtual firms
 • Use networks to link people, assets, and ideas

• Can ally with suppliers, customers to create and distribute

new products and services.

• Not limited to traditional organizational boundaries or

physical locations.

INCREASING FLEXIBILITY OF ORGANIZATIONS

• Information systems give both large and small organizations

additional flexibility to overcome the limitations posed by
their size.

• Small organizations use information systems to acquire some

of the muscle and reach of larger organizations.

• Large organizations use information technology to achieve

some of the agility and responsiveness of small organizations.

• Customization and personalization: IT makes it possible to

tailor products and services to individuals.

UNDERSTANDING ORGANIZATIONAL RESISTANCE TO

CHANGE
 • Information systems become bound up in organizational
politics because they influence access to a key resource.

• Information systems potentially change an organization’s

structure, culture, politics, and work.

• Most common reason for failure of large projects is due to

organizational and political resistance to change.

TATA CONSULTANCY SERVICES

Tata Consultancy Services Limited (TCS) is a software services

and consulting company headquartered in Mumbai, India. TCS is
the largest provider of information technology and business
process outsourcing services in India The company is listed on the
National Stock Exchange and Bombay Stock Exchange of India.

TCS is a subsidiary of one of India's largest and oldest

conglomerates, the Tata Group, which has interests in areas such
as energy, telecommunications, financial services, manufacturing,
chemicals, engineering, materials, government and healthcare.
Few of its offerings are:

• IT services,

• IT infrastructure services.

• BPOs,
 • Enterprise solutions,

• Consulting,

• Engineering and industrial services.

• Soft wares like TCS BANCS.

It has been truly said that “At TCS, it means achieving real
business results that allow you to transform, and not just maintain,
your operations. Our IT services, business solutions, and
outsourcing bring you a level of certainty that no other competitor
can match. You'll experience requirements that are met on-time,
within budget, and with high quality; greater efficiency and
responsiveness to your business; and the ability to shift
investment to strategic initiatives rather than tactical functions”.

History

Tata Consultancy Services was established in the year 1968 and is

a pioneer in the industry. Despite unfavorable government
regulations like the License Raj the company succeeded in
establishing the Indian IT Industry.

It began as the "Tata Computer Centre", a division of the Tata

Group whose main business was to provide computer services to
other group companies. F C Kohli was the first general manager.
JRD Tata was the first chairman, followed by Nani Palkhivala.

One of TCS' first assignments was to provide punch card services

to a sister concern, Tata Steel (then TISCO). It later bagged the
country's first software project, the Inter-Branch Reconciliation
System (IBRS) for the Central Bank of India It also provided
bureau services to Unit Trust of India, thus becoming one of the
first companies to offer BPO services.
In the early 1970s, Tata Consultancy Services started exporting its
services. TCS's first international order came from Burroughs, one
of the first business computer manufacturers. TCS was assigned to
write code for the Burroughs machines for several US-based
clients. This experience also helped TCS bag its first onsite project
- the Institutional Group & Information Company (IGIC), a data
centre for ten banks, which catered to two million customers in the
US, assigned TCS the task of maintaining and upgrading its
computer systems

In 1981, TCS set up India's first software research and

development center, the Tata Research Development and Design
Center (TRDDC). The first client-dedicated offshore development
center was set up for Compaq (then Tandem) in 1985.

In 1989, TCS delivered an electronic depository and trading system

called SECOM for SIS Sega Inter Settle, Switzerland. It was by far
the most complex project undertaken by an Indian IT company.
TCS followed this up with System X for the Canadian Depository
System and also automated the Johannesburg Stock Exchange
(JSE). TCS associated with a Swiss partner, TKS Teknosoft, which
it later acquired.

In the early 1990s, the Indian IT outsourcing industry grew

tremendously due to the Y2K bug and the launch of a unified
European currency, Euro. TCS pioneered the factory model for Y2K
conversion and developed software tools which automated the
conversion process and enabled third-party developers and clients
to make use of it.

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, much

later than its rivals, Infosys, Wipro and Mahindra Satyam.

During 2004, TCS ventured into a new area for an Indian IT

services company - Bioinformatics
In 2008, the company went through an internal restructuring
exercise that executives claim would bring about agility to the
organization.

Offices and Development centres

Tata Consultancy Services campus at Lucknow, India

Indian branches

TCS has development centres and/or regional offices in the

following Indian cities: Ahmedabad, Bangalore, Bhubaneswar,
Chennai, Coimbatore, Delhi, Gandhinagar, Goa, Gurgaon,
Guwahati, Hyderabad,Jaipur, Jamshedpur, kochi, Kolkata,
Lucknow, Mumbai, Noida, Pune, Thiruvananthapuram.

Global units

Africa: South Africa,Morocco.

Asia (outside India): Bahrain, China, Hong Kong, Indonesia,

Israel, Japan, Malaysia, Saudi Arabia, Singapore, South Korea,
Taiwan, Thailand, UAE

Australia: Australia

Europe: Belgium, Denmark, Finland, France, Germany, Hungary,

Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland, United Kingdom

North America: Canada, Mexico, USA

List of acquisitions

The table below gives some details of TCS' key acquisitions

Numb Acquisiti Headco

Company Business Country Value Remarks
er on Date unt

Business TCS acquired

Citi Global
October Process US$ 505 key BFS
1 Services India 12472
8, 2008 Outsourci mn domain
Limited
ng knowledge.

Expand
product
portfolio by
acquiring
rights to
Quartz and
Novembe TKS- Banking Switzerla US$
2 115 ownership of
r, 2006 Teknosoft Product nd 80.4 mn
Alpha and e-
portfolio,
enhanced
presence in
Switzerland
and France

Entry into
Latin America;
Novembe Banking US$ Access to
3 Comicrom Chile 1257
r, 2005 BPO 23.7 mn payment
processing
platform

February, Tata IT
4 India - - -
2006 Infotech Services

5 October, FNS Core Australia US$ 26 190 Acquired core

2005 Banking mn banking
Product solution
product and
access to 116
customers in
35 countries;
 FNS was an
existing
partner for
TCS

Acquired life
and pension
outsourcing
business from
Pearl Group;
October, United US$
6 Pearl Group Insurance 950 Domain
2005 Kingdom 94.7 mn
knowledge of
life and
pension
underwriting
business

TCS Access to
Novembe IT US$
7 Managemen Australia 35 Australian
r 2006 Services 13.0 mn
t clients

Phoenix Acquire
US$ 13
8 May 2004 Global BPO India 350 expertise in
mn
Solutions insurance

Acquire blue-
chip European
customers like
Ericsson, IKEA,
Vattenfall and
Swedish
Hutchison;
Indian IT IT US$ 4.8
9 May 2005 Sweden - SITAR was
Resources Services mn
TCS’ exclusive
AB (SITAR)
partner in
Sweden and a
non-exclusive
partner in
Norway.

10 May 2004 Aviation IT India - 180 ASDC was a

Software Services Singapore
Developme Airlines-TCS
nt JV; Acquired
 Consultancy Singapore
India Airlines as a
(ASDC) major client

Airline
BPO expertise
Financial
January US$ 5.1 in Airline and
11 Support BPO India 316
2004 mn Hospitality
Services
sector
India (AFS)

Access to
domestic
capability;
October CMC IT US$33.8
12 India 3100 continues to
2001 Limited Services m (51%)
be a
separately run
compa

Innovation and R&D

Tata Research Development and Design Center

TCS established the first software research center in India, the

Tata Research Development and Design Center, in Pune, India in
1981.TRDDC undertakes research in Software Engineering, Process
Engineering and Systems Research.

Researchers at TRDDC also developed MasterCraft (now called TCS

Code Generator Framework)artificial intelligence software that can
automatically create code from a simple computer language, and
rewrite the code based on the user's needs.

Research at TRDDC has also resulted in the development of Sujal,

a low-cost water purifier that can be manufactured using locally
available resources. TCS deployed thousands of these filters in the
Indian Ocean Tsunami disaster of 2004 as part of its relief
activities.
Innovation

In 2007, TCS launched its Co-Innovation Network, a network of

TCS Innovation Labs, startup alliances, University Research
Departments, and venture capitalists.

In addition to TRDDC, TCS has 19 Innovation Labs based in three

countries.

• TCS Innovation Lab, Convergence: Content management and

delivery, convergence engines, networks such as 3G, WiMax,
WiMesh, IP Testing for Quality of Service, IMS, OSS/BSS
systems, and others.
• TCS Innovation Lab, Delhi: Software Architectures, Software
as a Service, natural language processing, text, data and
process analytics, multimedia applications and graphics.
• TCS Innovation Lab, Embedded Systems: Medical electronics,
WiMAX, and WLAN technologies.
• TCS Innovation Lab, Hyderabad: Computational methods in
life sciences, meta-genomics, systems biology, e-security,
smart card-based applications, digital media protection,
nano-biotechnology, quantitative finance.
• TCS Innovation Lab, Mumbai: Speech and natural language
processing, wireless systems and wireless applications.
 • TCS Innovation Lab, Insurance - Chennai: IT Optimization,
Business Process Optimization, Customer Centricity Enablers,
Enterprise Mobility, Telematics, Innovation in Product
Development and Management (PLM) in Insurance.
• TCS Innovation Lab, Chennai: Infrastructure innovation,
green computing, Web 2.0 and next-generation user
interfaces.
• TCS Innovation Lab, Peterborough, England: New-wave
communications for the enterprises, utility computing and
RFID (chips, tags, labels, readers and middleware).
• TCS Innovation Lab: Performance Engineering, Mumbai:
Performance management, high performance technology
components, and others.
• TCS Innovation Lab, Cincinnati, United States: Engineering
and Manufacturing IT solutions.

Some of the assets created by TCS Innovation Labs are DBProdem,

Jensor,Wanem, Scrutinet.

In 2008, the TCS Innovation Lab-developed product, mKrishi, won

the Wall Street Journal Technology Innovation Award in the
Wireless category.[. mKrishi is a service that would enable India's
farmers to receive useful data on an inexpensive mobile device.

TCS' Co-Innovation Network partners include Collabnet, Cassatt,

MetricStream, academic institutions such as Stanford, MIT, various
IITs, and venture capitalists like Sequoia and Kleiner Perkins.

Employees

TCS is considered one of the largest private sector employers in

India with a core strength in excess of 160,000 individuals. . TCS
has one of the lowest attrition rates in the Indian IT industry.
IMPLEMENTATION OF MIS IN TCS

HRIS at TCS

HRIS- THEORETICAL DIMENSIONS

HUMAN RESOURCE INFORMATION SYSTEM

The Human Resource Information System (HRIS) is a software or

online solution for the data entry, data tracking, and data
information needs of the Human Resources, payroll, management,
and accounting functions within a business. Normally packaged as
a data base, hundreds of companies sell some form of HRIS and
every HRIS has different capabilities. Pick your HRIS carefully
based on the capabilities you need in your company.

Human resource Information system helps HR managers perform

HR functions in a more effective and systematic way using
technology. It is the system used to acquire, store, manipulate,
analyze, retrieve, and distribute pertinent information regarding an
organization's human resources. A human resource information
system (HRIS) is a system used to acquire, store, manipulate,
analyze, retrieve, and distribute pertinent information about an
organization's human resources. The HRIS system is usually a part
of the organization's larger management information system (MIS)
which would include accounting, production, and marketing
functions, to name just a few. Human resource and line managers
require good human resource information to facilitate decision-
making.

Typically, HRIS provides overall:

• Management of all employee information.

• Reporting and analysis of employee information.
• Company-related documents such as employee handbooks,
emergency evacuation procedures, and safety guidelines.
• Benefits administration including enrollment, status changes,
and personal information updating.
• Complete integration with payroll and other company financial
software and accounting systems.
• Applicant and resume management.

The HRIS that most effectively serves companies tracks:

• attendance,
• pay raises and history,
• pay grades and positions held,
• performance development plans,
• training received,
• disciplinary...

The EVA Model

TCS adopted EVA in 1999, when the company had a staff of around
15000, working at several locations across the world. Through the
EVA model, TCS aimed at creating economic value by
concentrating on long term continuous improvement.

EVA measured operating and financial performance of the organization

and the compensation of all employees was linked to it. TCS went in
for the EVA as during that time, the company was not a public limited
company and hence could not have a stock option plan. There were
several people who played an important role in the success of the
organization, who needed to be recognized. As there was no wealth
sharing mechanism in place, EVA was adopted to focus on continuous
improvement rather than short term goals and also to motivate
employees. Commenting on this, S Mahalingam (Mahalingam), CFO
and Head Global Finance for TCS said, "We wanted to construct a
defined incentive system, which would reward on the basis of
profitability...
EVA-Linked Compensation System

In 1996, TCS was organized into a three dimensional model with

the first dimension comprising of industry practices, which included
engineering, transportation and telecom; the second dimension
comprising of service practices like e-business, outsourcing,
technology consulting; while global and regional operating areas
formed the third dimension

A business unit could be a part of a service, a practice, a

geographical unit or a combination of all the three. Every unit was
considered to be a revenue center and had its own EVA target. The
units that did not fall under the purview of any of these were
corporate offices and research & development, the costs of which
were divided among all the units. Through EVA-linked
compensation, employees could claim stakes at three EVA levels -
at the organization level, at the business unit and the individual
level. The individual was informed how he or she could contribute
to the EVA enhancement at all three levels. EVA was controlled by
revenues, capital and costs, and an individual could contribute in
any or all of these areas at all the three levels...

The Benefits

The benefits of EVA were realized across all levels in the

organization. Employees became aware of their responsibilities and
their share in increasing the EVA of the unit and organization. All
the units could determine how they had fared against the targets.
The bonus banks also helped in
sustaining performance from the
individuals, with close relationship
between pay and performance.
There was an increased sense of
belonging among the employees and
the employees were motivated to
increase their contribution as they
were also equally benefited by the
increase in EVA.
EVA was not just a performance
metric but an integrated
management process aimed at
achieving long term goals. One of
the major benefits of implementing
EVA in TCS was increased
transparency in the organization.
The internal communication within a
unit had increased considerably. The
decision making process became
more decentralized...

The Drawbacks

The EVA-based compensation system received severe criticism

during the initial years of its implementation. Industry analysts
commented that EVA concentrated mainly on return on
investments, due to which the growth of TCS could be restricted.
In 2003, TCS caused an uproar in the IT industry when it reduced
the variable salaries of employees by 10%. This was the initial
impact of EVA which was implemented in the company from April
01, 2003. The reduction in the variable salary resulted in an overall
reduction of monthly take-home salary for most of its employees...

.
BUSINESS MODEL:

The different information system used by TCS to serve its clients in

a more customized manner is what makes it distinguished from
other it companies. From time to time these information systems
have created a competitive edge over its competitors. In order to
serve the clients in a more effective TCS has divided its client base
into different ISUs (industry service units) for example
TCS

ISU ISU ISU

ISU ISU
Life science and Banking and finance Telecom Hi-
Tech Government
Healthcare
Apple
IRCTC

RBS CITI group SBI

Vodafone British telecom

Pfizer Johnson &
Johnson
Each ISU is divided into different accounts (clients) like for banking
and finance ISU examples are Royal Bank of Scotland, CITI group,
SBI etc. But at the same time they are interconnected through
different information systems. Each and every employee can
access data of every ISU as and when required to solve the query
of the client.

Each ISU is headed by a separate chairman and different accounts

(clients) are headed by group leader. This has led to division of
labour and specialization. Though the business has been
distributed into different segments yet it can be viewed and
accessed as a single entity.

The segregation of the clients in different ISU as per their sectors

contributes to the maximum operational efficiency and quick
retrieval of all the requirements of a project of that particular
client.

This in return helps the client in quick redressal of their queries

and the company in maintaining sustainable customer relations.

The whole procedure of developing information system is divided

into phases.
Phase 1 – development of software as per client requirement.
Phase 2 – maintenance of software.
Phase 3 – change as per requirement.

They have also implemented the concept of SIX SIGMA in their

billing process which used to be done manually. Like for example
the accounts officer who used to take at least three days to sort
out and prepare the updated bills of different clients. Now with
thehelp of this technology the bills of the different clients are
updated automatically as per their vouchers and it is now a matter
of only few hours to extract the updated bills.
In respect of employee management and knowledge enhancement
the company has one of the best IT systems installed which helps
to increase the employees’ productivity and efficiency. The system
is known as ULTIMETICS. It includes
• Time sheet entry.
• E- Mart.
• Shop portals.
• No max site
• Idea max.
• Mind max.

All the information and the matter regarding this research have
been provided by the employees who are currently working in the
organization. They made us aware about the different ISU
(Industry Service Unit) and the other information system operating
in the organization. Following is what they said;

INTERVIEWS OF EMPLOYEES

AJAY BANSAL (ASST. SYSTEM ENGINEER)

“Dividing the whole business into different ISUs and their further
division into accounts has led to easy and quick assessing of any
information of that client which helps to deliver the satisfactory
services to the client”

AMARDEEP JAIN (ACCOUNTS OFFICER)

“The use of six sigma technology in the billing system has led to
efficient billing with almost no errors and it takes only few hours to
extract the bills hence saving time of at least two days which is
devoted some other useful work and helps in cost cutting.
RAVI BHUSHAN BANSAL (HR EXECUTIVE)
“Use of the HRIS has helped to maintain the database of the
employees and their complete profile which helps to extract
information as to which employee could fit in different jobs
requirements”.

VINAY VERMA (SYSTEM ANALYST)

“The benefits of EVA were realized across all levels in the
organization. Employees became aware of their responsibilities and
their share in increasing the EVA of the unit and organization.
There was an increased sense of belonging among the employees
and the employees were motivated to increase their contribution
as they were also equally benefited by the increase in EVA.

MANISH SHARMA (GROUP LEADER)

“The use of ULTIMETICS tool has helped the organization maintain
regular time sheet entry. It contains sites as NO MAX which gives
the employees access to different online books and journal which
are very much needed in updating their knowledge. It also
contains IDEA MAX which encourages the employees to put in their
innovative ideas and designs which are periodically analyzed by
the management and if found viable is further recommended to
R&D section.

EXPECTED CONCLUSION:

The manner in which TCS has implemented the MIS system has
not only helped it to become largest IT firm in India but has also
helped it achieve major position in global market. TCS has been
able to grab many IT projects latest has been INDIA PASSPORT
DIGITISATION PROJECT.

It has signed a deal with the country’s Ministry of External Affairs

for the Passport Seva Project (PSP).
PSP is the largest mission-critical e-governance project in India
valued at more than Rs1, 000 crore (about US$204 million).

According to the IT Company, it will manage the project end-to-

end which will be implemented within a buy-own-operate-transfer
or BOOT framework with pilot projects operation within 19 months.

After implementation of the project, the ministry expects that the

process of issuing a new passport will be completed in three
working days while passports issued under the Tatkal scheme will
be dispatched on the same day, subject to address and police
verification of applicants.

The Tata group said the country-wide roll-out of the project will
take place within six years and the government will open 77
passport filing centres across the country in a phased manner.

The IT services and outsourcing firm also said that PSP would
digitise the entire passport services lifestyle and allow online filing
of applications. Applicants also have the option of filling the
intelligent character recognition (ICR)-enabled form which, along
with all relevant documents, will be scanned and submitted at
passport facilitation centres, it said.