Tata Consultancy Services Organizational Structure

TATA Consultancy Services Organizational Structure
Introduction:
Tata Consultancy Services (TCS) is the world’s leading global Information

Technology consulting firm and business outsourcing organization. Tata
Consultancy Services was established in the year 1968 and is a pioneer in
Information Technology Outsourcing and Management Industry. TCS is a
subsidiary of the TATA group and has its head quarters in Mumbai.
History and Growth:
TCS began as the "Tata Computer Centre", for the company 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 punched 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. The company pioneered the global delivery model for IT services with
its first offshore client in 1974. 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 SegaInterSettle, 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 2008, 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.
TCS – Experience Certainty
TCS marked a tremendous growth with marking its presence in 34

countries across 6 continents, with an absolute range of services across diverse
industrial fields. TCS ranked in top ten in the fortunes rank list for the year
2009. The concern shaped consolidated income of US $5.7 billion for economic
year ended 31 March 2009 and is listed on the Bombay Stock Exchange and
National Stock Exchange in India.
TCS expanded into China, Hungary, Brazil, and Mexico in order to

incarcerate the opportunities in financial services and services like Remote
Infrastructure management and BPO in those countries, TCS always offered a
unique manner to its global customers by positioning its brand in the
worldwide market. The zenith of all these lead to the concern’s contributions
of TM Global Network Delivery Model(GNDM) across Europe, China, India, US
and Latin America as well as incorporated full overhaul offerings, all backed by
the promise of certainty of experience for customers. By 2007, the value

enunciation of “Experience certainty” was officially initiated, acknowledged
and authenticated by global customers.
As the Indian financial system sustained to grow in the new century, the
necessity for technology to constrain comprehensive augmentation became
part of national schema. TCS, which had been spending additional, time in
domestic IT from the time when its commencement was well located to assist
the National Government at the central and state level, in its inventive
proposals. TCS, by its own initiative shaped a digitized delivery system. In a
manifestation of the company’s ground-breaking spirit and with an aspiration
to extend the benefits of the IT upraise across the country. TCS aptitude to
convey high-quality overhauls and resolutions are matchless. It is the world‘s
first organization to accomplished an enterprise-wide Maturity Level 5 on both
P-CMM and CMMI, using the most meticulous assessment methodology -
SCAMPISM. TCS Integrated Quality Management System integrates process,
populace and technology maturity through various ascertained frameworkand
traditions including ISO 9001:2000, IEEE and SW-CMM, CMMI, 6-Sigma and P-
CMM.
For maximum flexibility, speediness, and competence, a vigorous IT

strategy is essential. TCS contribution facilitates companies to construct the
most of their IT investments from providing system testing solutions,
application development, management services, and integration solutions.
TCS’ Organisational Structure
TCS follows the matrix organizational structure which helps them to

organize the vast team under single board of directors.
Board of Directors
Non-Executive Board Members
 Ratan N Tata, Chairman

 S Ramadorai, Vice Chairman

 Laura Cha, Director
 Prof. Clayton M Christensen, Director
 Aman Mehta, Director
 Dr. Ron Sommer, Director
 Venkatraman Thyagarajan, Director
 Dr. Vijay Kelkar, Director
 Ishaat Hussain, Director
Executive Board Members
 N Chandrasekaran, Chief Executive Officer and Managing Director

 S Mahalingam, Chief Financial Officer and Executive Director
 Phiroz A Vandrevala, Executive Director and Head, Global Corporate
Affairs
Matrix Organization:
The matrix organization is a combination of functional departments which

provide a stable base for specialized activities and a permanent location for
staff and units that integrate various activities of different functional
departments on a project team, product, programme , geographical or systems
basis.
The organizational structure under the Chief Executive Officer is shown below:
C.E.O
&
M.D
The C.E.O & M.D, along with the Board of Directors sets the Vision,
Mission and Values of the company. The various functional departments are
neatly divided and organized under the functional heads. The CFO heads the
Corporate Finance, the COO heads the Operations Department and the other
departments are headed by the corresponding functional heads.
The Operations department is headed by the Chief Operating Officer and it is

divided into several domains (Otherwise called as Verticals).
A high level organisational structure under the COO is given below:

INSURANCE
Geographic Divisions:
TATA Consultancy Services has a global presence and is divided region-

wise into India, North America, U.K, Europe and Asia Pacific.
TCS has opened Global Delivery Centres (GDC) in the various parts of the world
as shown below:
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
South America: Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay, Peru
Industry Service Units (ISU’s)
The different clients that TCS serves are grouped into different domains
or verticals. The major verticals of TCS are listed below:
 Telecom and Media

 Banking and Financial Services
 Insurance
 Retail and Production Goods
 Travel and Hospitality
 Hi-Tech and Computer Services
 Government and Public Services
 Manufacturing and Utilities
As an industry leader, TCS has a long relationship with different market

leaders in various Industry Verticals. It serves over customers who are present
across countries. Some of the leading customers of TCS in each vertical are
given below:
Telecom – British Telecommunications
Banking and Financial Services – Bank of America, Morgan Stanley
Insurance – AIG, USAA
Retail and Production Goods – Marks & Spencer
Travel and Hospitality – British Airways
Government and Public Services – Govt of India Passport Project
Manufacturing and Utilities – General Electric
Advantages of division into ISU’s
By dividing into the Industry Service units, TCS has built up a unique
culture of nurturing expertise in a particular business domain and enabling
them to offer business solutions and consulting in addition to the technology
solutions.
It enables TCS to train the employees in a specific business domain and also
enables the establishment of delivery centres for different verticals.
Other Business Segments:
 Business Excellence Group

 Global Consulting Practice
 Technology Centre of Excellence
 Shared Services
 Resource Management
ISU’s organizational Structure
BUSINESS RELATIONSHIP
MANAGER
The above figure shows the structure and flow of control present under
an ISU. The ISU head governs a particular business unit. For every business
unit, TCS has a relationship manager who will oversee the services to different
customers across an ISU. A Business Relationship Manager (BRM) is appointed

for every customer and he will be the point of contact of the customer for the
business transactions between the customer and the client.
The other roles in the above chart are self explanatory.
Organizational Structure – Employee Designations
The various designations within the organization from the entry level are
given below, in the increasing order of seniority:
 Assistant Systems Engineer

 IT Analyst
 Assistant Consultant
 Associate Consultant
 Consultant
 Senior Consultant
 Principal Consultant
TCS – Horizontal Service Areas
TCS provides services in the below service areas. These are spread across
different service units and different customers.
 Application Development and Maintenance

 Business Intelligence & Performance Management
 Business Process Outsourcing
 Engineering and Industrial Services
 Enterprise Solutions (CRM, ERP, SCM)
 IT Consulting
 IT Infrastructure Services
 Testing and Quality Assurance.
CONCLUSION:
TCS, which was founded as small computer centres has now emerged as
a very big multi- national IT company in the span of 40 years. TCS which is
considered as the one of the oldest and biggest MNC from India is still growing
in the spot-light with a new dimension. The roots of TCS are also can be taken
in account for this massive growth. More importantly, the efficient matrix
organizational structure it followed played a major role in developing into an IT
super power. The growth of TCS in global market creates a positive impact on
India and Indian economy.

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TATA Consultancy Services Organizational Structure

Tata Consultancy Services (TCS) is the world’s leading global Information

History and Growth:

One of TCS' first assignments was to provide punched card services to a

In the early 1970s, Tata Consultancy Services started exporting its

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

The first client-dedicated offshore development center was set up for

In 1989, TCS delivered an electronic depository and trading system

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

In 2008, TCS saw outsourcing opportunity in E-Commerce and related

TCS – Experience Certainty

TCS marked a tremendous growth with marking its presence in 34

TCS expanded into China, Hungary, Brazil, and Mexico in order to

the promise of certainty of experience for customers. By 2007, the value

For maximum flexibility, speediness, and competence, a vigorous IT

TCS’ Organisational Structure

TCS follows the matrix organizational structure which helps them to

Non-Executive Board Members

 Ratan N Tata, Chairman

 S Ramadorai, Vice Chairman

Executive Board Members

 N Chandrasekaran, Chief Executive Officer and Managing Director

The matrix organization is a combination of functional departments which

The Operations department is headed by the Chief Operating Officer and it is

A high level organisational structure under the COO is given below:

TATA Consultancy Services has a global presence and is divided region-

Africa: South Africa, Morocco

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

North America: Canada, Mexico, USA

South America: Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay, Peru

Industry Service Units (ISU’s)

 Telecom and Media

As an industry leader, TCS has a long relationship with different market

Telecom – British Telecommunications

Banking and Financial Services – Bank of America, Morgan Stanley

Insurance – AIG, USAA

Retail and Production Goods – Marks & Spencer

Travel and Hospitality – British Airways

Government and Public Services – Govt of India Passport Project

Manufacturing and Utilities – General Electric

Advantages of division into ISU’s

Other Business Segments:

 Business Excellence Group

ISU’s organizational Structure

customers across an ISU. A Business Relationship Manager (BRM) is appointed

The other roles in the above chart are self explanatory.

Organizational Structure – Employee Designations

 Assistant Systems Engineer

TCS – Horizontal Service Areas

 Application Development and Maintenance

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