What is the business model of TCS?

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Introduction –

Why should we do a case study of a company and what benefits do we get from it, we will see through this article. By looking at the fundamentals of any company, we get the benefit of this information and by studying any business model, we get some ideas to increase our business especially in the technology sector.

TCS is the most important company of the Tata group, which gives it more than 70% of their total profit, so we will keep you by studying its business model. So we first have to know what is outsourcing business and what is the light model of business and business benefits are available by outsourcing.

TCS Company is an international company which has many clients and employees all over the world and here we will see and analyze who are their international competitors and their competitive companies in India. We will try to know the difference between cloud computing business and consultancy business.

Establishment of Tata Consultancy Services  –

TCS This company was introduced in 1968, which was started as a branch of Tata Sons Limited, whose main work was related to computers. Under this, the first work of this company was to do the work of punch card service for Tata Steel, which was known as TISCO at that time.

Started his work by preparing and maintaining computer systems for Central Bank of India and UTI Bank. The Tata group in India is likewise a very old brand, which TCS also benefited and the company will get the benefit of technological changes in the future.

Today, TCS this company has become a leading company not only in IT sector but for all sectors. It is well ahead of its competitors Infosys and HCL in India. JR de Tata was the company chairman and FC Kohli was the general manager, becoming the second chairman of TCS after JR de Tata. TCS has become India’s first 100 billion US dollar company today and it is considered an important international company in the IT sector.

Business Model of Tata Consultancy Services  –

Like the production sector, there is no need to invest much money for the initial setup in the service sector and in that to the business model in information and technology is much cheaper than the rest of the sector, so the profit in it is very good. Today, TCS is considered a leading company in the field of information and technology, which works to provide software and product services related to computer systems.

In this business model for TCS company, 50% of the expenditure is spent on the salary of the employees, and the rest of the expenses are very less, which we have to spend a lot of money in the field of any production or trading. TCS This company is an important company of the Tata Group and it is considered a big brand in the industry sector for the last 150 years.

The main asset of the company is its employees, which is the third largest private company after India’s railway and army, which has about 4 lakh employees and 37% of its women worker employees, so that the company has followed the ideology of gender equality. Since this business model is a very light, the company does not have any debt, this is is the biggest achievement of the company.

Key Competitors of Tata Consultancy Services –

  • IBM
  • Infosys
  • SAP
  • Accenture
  • Wipro
  • Cognizant
  • DXC Technology
  • Tech Mahindra
  • HCL Technology

Major Clients of Tata Consultancy Services –

  • ABN Amro
  • Astra Zeneca
  • Bajaj Finance Ltd
  • Bajaj Allianze General Insurance Corp .
  • Bajaj Housing Finance Ltd
  • British Telecom
  • Panasonic Corporation
  • Quantas
  • BG Group
  • Bank of Montreal
  • Voltas
  • ZEE Entertainment
  • Vodafone UK
  • Vodafone Idea Ltd
  • Large European Bank
  • London Hydro
  • Global Media House
  • State Bank of India
  • Citi Bank UK

Structure of Tata Consultancy Services –

TCS This company is considered to be the best company in the world in the field of information and technology, which is called the service sector, in which money does not have to be spent much for the setup like a company in the production sector. The main asset of his company is his employees, in which half of the company’s expenses are spent on salary. Therefore, it is their priority to train good experts and new employees.

TCS company has the maximum number of employees at a private company in India and their priority should be reserve manpower to provide good service, the company pays more attention to it. JRD Tata, who was the founder of the company, was the first founder of the company after which Pankaj Roy became the second chairman.

Company modification, customer needs and proactive approach failed in the 1990s, due to which he started working on customer, employee, technology and money adjustment in 2002, in his strategy. Which resulted in the Tata Group today. Successful company is known.

TCS Company & Infosys Company  –

TCS company’s main competitor in the information and technology sector in India is Infosys company which was established in 1981, which is known for its service and brand. Whose founder Narayana Murthy is working as a mentor of the company. Due to the problem of leadership of the company, a lot of results have been seen on the business of the company in the past.

We saw a lot of rift between the company’s former CEO Vishal Sikka and the management, which resulted in a lot of consequences for the company’s image. Talking about TCS, this problem has not been there till date and the company’s CEO Rajesh Gopinathan are doing a good job which is visible from the performance of the company.

Today the market capital of Infosys company is $ 96 billion, which is giving tough competition to TCS in India and abroad. Like TCS company, Infosys company has made a good image in the market except for some controversial incidents, from which we can say that TCS is the biggest competitor in the technology sector.

Features of Tata Consultancy Services –

  • TCS company is considered to be the largest company in India with a market capital of USD 100 billion.
  • TCS company contributes 70% in terms of profits to the Tata Group.
  • TCS company is counted among the best companies not only in India but in the world in the field of information and technology.
  • Railways and Army are considered to be the largest employment providing company in India, with 4 lakh employees working.
  • 35% women work in TCS company.
  • The main business of the company is manufacturing computer software and providing producton  services and enterprise solutions, licenses, equipment sales and production, which includes banking finance companies and government projects.
  • The company has 24 customers who give them $100 million and 58 customers who give a business of $ 50 million.

Critical Analysis of Tata Consultancy Services –

  • TATA CONSULTANCY SERVICES The main function of this company is to make and maintain computer software, but the company has failed to develop in that technology needs modification.
  • The US company EPIC against TCS company had alleged theft of trade secrets by TCS employees during a project and a fine of 140 million was imposed by the court on TCS’s American company, which tarnished the image of the company.
  • The product segment of TCS company is not becoming as effective as it should have been, its management is always worried.
  • The performance of TCS’ UK base company Diligenta has been very disappointing, which is a subsidiary company, it has had a bad effect on the overall performance of the company.
  • TCS will have to work hard to become an international technology company like Apple, Google because this company has become the world’s largest company with a capital of more than 2 trillion dollars.

Conclusion –

In this way, we have tried to know about this company Tata Consultancy Services here, so that we have tried to understand the business model of this company. With this, we understand the fundamentals of the company and get important information for investing in the Indian stock market. On the other hand, information about important strategies is available for companies working in the same sector on a small scale.

The Service sector has a lot of profit margin more than other business sector, but it requires a lot of skills and knowledge, so this business model is good for startup business. TCS company is performing well without debt, this is the most important thing that makes us understand the success of the company.

The leadership of the company has been good and stable from the beginning, due to which the decision-making process in the company has been very productive, due to the management problems of Infosys, they suffered a lot and it had a bad effect on the company’s reputation. This has never been a problem in TCS and that’s why we see that it is very difficult to find flaws in the TCS business model.

IT COMPANY INFOSYS LTD-CASE STUDY

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