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TCS restructures global operations into five groups and 20 units news
13 February 2008

Mumbai: Tata Consultancy Services (TCS) has restructured its $6-billion global business into five groups and about 20 semi-autonomous units to become more nimble and speed up customer service.
 
The restructuring, to be effective from April 1, is aimed at driving operational agility, addressing new growth opportunities and enhancing customer focus.

The new global operating model will provide customers with a single view of TCS encompassing project delivery and relationship management and enable a sharper focus on the customer, the company's CEO and managing director S Ramadorai said.

"As we scale up over 100,000 employees, TCS needs a structure that allows us to build a nimble organisation to capture new growth opportunities," he said.

The five groups will include the industry solutions group, which will look after post-sales service; the major markets group which will focus on the UK, US & Europe, and the new growth markets group that will focus on India, Asia-Pacific and emerging markets.

The other two groups are the strategic initiative group, for small and medium businesses and BPO firms, and the organisation infrastructure group for driving company excellence.

"This will create a framework that is scalable for growth across markets and provide focus on strategic initiatives like asset leveraged solutions, platform-based BPO as well other new initiatives," Ramadorai said.

The organisation infrastructure group will have four units, which will look into issues like process excellence, technology excellence, shared services group and resource management group.

The new groups will be organised around business opportunities as against the earlier model organised along geographical borders, industry domains and service groups.

Each group will have a revenue size in the range of $250-500 million and staff of up to 5,000, be accountable for its own profits and pursue its own human resources and market strategies.

TCS has identified key people who will head these new positions, said N Chandrasekaran, COO and executive director of TCS.

"The next two months will take care of the final details. We think the modular structure will simplify our interface with customers and drive agility in all areas of operations," he added.

"It is good for us as we think the modular structure will simplify our interface with customers and drive agility in all areas of operations along with sharpening accountability to customers," Chandrasekaran said.

For customers, they can now interact with the chief executive of a small organisation and have their needs met with better speed and closer understanding. For employees, the benefit is leadership prospects, he added.


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TCS restructures global operations into five groups and 20 units