Global guru.
by Pellet, Jennifer
Tata Consultancy Services (TCS) has been on something of a growth
tear over the past year. As India's biggest IT outsourcer, Mumbai,
India-based TCS provides software and services for an impressive roster
of clients, including IBM, Microsoft, General Electric, Morgan Stanley,
American Express, Merrill Lynch, Lucent Technologies and Nortel, in 55
countries.
Under the stewardship of CEO Subramaniam Ramadorai (known as
"Ram"), the global software and services companies racked up
revenues of $4.3 billion in 2006-'07, an increase of 45 percent
over the previous year. What's more, it logged an impressive $950
million in profits.
This banner year is the most recent in a long tradition of growth
spurts for the not-so-new IT company. TCS, after all, was launched in
1968, four years before Ramadorai joined the company in 1972.
Founded as a computer service company, TCS reinvented itself to
become a software company in the early 1990s, pursuing growth through
both product development and mergers and acquisitions. Since Ramadorai
took the helm as CEO in 1996, TCS has been moving up the value chain by
returning to its service roots--an area where its broad experience and
global reach offer a competitive edge. Under his leadership, TCS's
Technology Excellence Centers developed knowledge, expertise and
equipment in specialized technology like SAP, AS400 and DEC, as well as
products from Microsoft, Silicon Graphics, Sun and Tandem.
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"We build platforms for small and medium enterprises that
don't want to be immersed in infrastructure," says Ramadorai,
who sees corporations increasingly looking to secure complete IT
outsourcing contracts with one or two core vendors. "Over the last
25 years, we have matured in terms of discipline and scalable models to
develop the ability to absorb third-party technologies and accurately
and quickly build and support an integrated single platform. We can then
take these capabilities in one geography and replicate them across other
geographies."
In addition to a vast wealth of experience in IT, the 62-year-old
Ramadorai credits TCS's youthful and enthusiastic employee base for
enabling the company to respond fast. The average age of TCS's
92,000 associates is just 28. "It's easier to change mind-sets
at that age than when you're like me," he jokes, adding that
working with younger-generation employees is invigorating. "You
challenge yourself, and you challenge them when you interact."
The company also leverages its own technological capabilities to
connect those employees--who span 53 countries--with one another, as
well as with its clients. "We can provide employee-based services
from any part of the world in real time, plus our customers can access
this digitized system," says Ramadorai. "They can see what is
happening with their projects in real time, and some of the best
practices we achieve can be shared across the system.
The ability to effectively connect people and deliver services from
across the globe will be increasingly essential to develop a
customer's comfort level with sourcing functions offshore, he adds.
"The way to deliver services is going through fundamental
changes," says Ramadorai, whose goal is to make TCS a top 10 IT
services player by 2010. "It's no longer about what you push
to the customers, but what they need and whether you can deliver that
effectively. Whether it's in financial services, banking, insurance
or another area, services will be delivered differently in the
future."
COPYRIGHT 2007 Chief Executive
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Copyright 2007, Gale Group. All rights
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NOTE: All illustrations and photos have been removed from this article.