TCS, India's largest IT company, is all set to create stock market history with its initial public offering
Tata Sons Limited, the Tata Group's holding company, started TCS (Tata Consultancy Services) in the year 1968 as a strategic initiative based on the insight that management problems in Indian industry would be mitigated, perhaps even resolved, through effective use of information technology.
With this objective, under the leadership of FC Kohli, TCS pioneered the Indian effort to create a globally recognisable brand for the Indian software industry. And today it is a Rs5,012 crore (US$1.04 billion) company.
The first decade of TCS was devoted to establishing its base in Mumbai. Throughout this period, strong links with academia underlined the intellectual underpinnings of the consulting business. Participation in the activities of professional societies, peer recognition and in-house training prompted professionalism within the company.
At a time when hardly any city of India initiated into the software business, TCS started its 'specialty centers' in Chennai and New Delhi. The pattern of best practices in Mumbai's 'center' and Tata's governance was replicated in these new offices.
Through the decades of 1980s and 1990s, TCS invested deeply in software engineering practices and standards, software quality assurance, software project management, software process and allied metrics, and research & development in software engineering.
TCS is the single largest software services exporter from India, servicing clients in more than 50 countries around the world. The company is expanding its international presence, particularly in Europe and the Americas. With over 100 offices outside India, it is now truly global in character and reach. TCS employs more than 22,000 consultants and serves hundreds of clients, providing information technology and business consulting services to organisations in government, business and industry around the world.
TCS offers a comprehensive package of services and software. The company provides a variety of information technology services, including systems integration, application development, consulting, infrastructure management, and engineering services. It also offers software packages for specific business functions, such as applications for electronic banking, insurance billing, customer relationship management, drug discovery, and hospital management.
To provide a constant growth to the company; TCS has alliances with a large number of academic institutes in India and abroad, including the Indian Institute of Technology in Mumbai, Chennai and Kanpur, the Indian Institute of Science, Bangalore, the University of California, San Diego, the University of California, Riverside, the University of Humberside, the University of Waterloo, the Rotterdam School of Management, Carnegie Mellon University and the University of Wisconsin.
Mutual research with industry and academia, partnerships with global technology leaders, and innovative projects for over 1,000 clients give TCS an in-depth knowledge of the global economy and a vision of growth in software industry. Its SEI-CMM (Software Engineering Institute's Capability Maturity Model) level 5 status, the expertise of its consultants, its world-class products, and proven offshore capabilities strengthen TCS's value proposition.
Besides providing software solutions to its clients, TCS also develops and markets a variety of products in nearly all streams of industry. It has developed products such as hospital management system for the healthcare industry, eIBS, NCS, FIG and Quartz™ for the banking and financial services industry, CemPac for the cement industry, TARABS, insurance product designer workbench and issue quote for the insurance industry, and also software development tools such as MasterCraft™, Assent, DataClean and Infrex.
Currently headed by P Ramodorai, TCS is increasing the diversity of its offerings through strategic alliances and joint ventures with global leaders in technology and eBusiness, such as IBM, Netscape, Microsoft, SAP, Oracle and Compaq, to name a few. TCS is also a founder member of the Internet Security Alliance (ISA) and a member of the Universal Description, Discovery and Integration project (UDDI), through which it works with world technology leaders to enhance internet security and usability.
The Tata Research Development and Design Centre (TRDDC), which is the research and development hub of TCS provides critical inputs to the organisation's consulting practice. TRDDC studies, invents and improves leading-edge technology tools and engineering techniques, and applies its intellectual property to TCS's worldwide commercial projects.
There are lots of prestigious clients of TCS, namely Ford Motors, General Motors, AT&T, Verizon Communications, British Telecom, IBM, Citibank, etc. Some of the awards won by TCS in recent past:
Top Software Exporter Award for 2001-2002.
Banker Technology Award 2003 for hallmark project CDSX, executed for the Canadian Depository for Securities Limited.
Lotus Beacon 2003 Award from IBM for SmartGov solution.
Ranked No 1 in DataQuest IDC CSA survey for CIOs' choice of IT services companies in India.
Rajiv Gandhi National Quality Award for TCS's Shollinganallur Center.
Best IT Consultant (Asia Pacific) for the year 2002-03.
Silicon India Company of the Year 2002 (November 16, 2002)
As a result of intellectual horizons and geographical reach, today TCS is India's largest IT company, as well as Asia's largest independent global software and services firm.
On the first day of its offering on 29 July 2004, TCS IPO was subscribed more than 91 per cent. The Rs5.54 crore IPO is expected to be over subscribed by at least five times by the time the offer closes on 5 August 2004. It seems to be a hit at the stock market and might redefine the indexes of stock market as well as the investing pattern of the mutual funds.
Fifty per cent of the money will go to Tata Sons, and the rest fifty percent to TCS. The company is planning to explore the possibility of acquisitions of some other companies in Latin America and China from these fifty percent earnings from the IPO. There is a possibility that TCS would become the number one wealth creator in the country among all the individual companies in near future.