PROFILE OF A MULTINATIONAL CORPORATION: TATA

CONSULTANCY SERVICES

ACADEMIC YEAR: 2023-2024

SEMESTER I

SUBMITTED BY

RASHI HORA (23010324067)

SREEVEDA KULKARNI (23010324118)

BATCH: 2023-2028

DIVISION: C

BBA.LL. B

UNDER THE GUIDANCE OF

Dr. Kishore Kumar

INTRODUCTION

1968 Tata Consultancy Services (TCS) was established and is headquartered in Mumbai,
Maharashtra. It is one the largest multinational IT service and consulting companies. It's
located in 46 countries in 150 different locations, is part of the Tata group, and currently has
over 600,000. It offers various services, including digital transformation solutions, system
integration and software development. It also provides specialization in emerging
technologies such as cloud computing, AI, and blockchain. TCS became one of India's largest
and most profitable companies when it became publicly traded in 2004.
This project aims to conduct a detailed analysis of the MNC Tata Consultancy Services
(TCS); in this study, we will go in-depth and analyze the company on various factors. This
study would be helpful for the educational value of Investment Decisions, risk Assessment,
Economic Impact, Research Reference and General Awareness.
Due to several essential variables, Tata Consultancy Services (TCS) stands out in the
booming IT services and consulting business environment. With a history dating back to
1968, TCS has established itself as one of the most revered and respected organizations in the
international technology sector. This study examines the key attributes that distinguish TCS
and make it a model of excellence. TCS has a rich history of 50 years. Thanks to its venerable
past, it has a sense of reliability and integrity. As TCS is a business based on tradition and
knowledge, customers and stakeholders benefit from its extensive experience and expertise.
Another advantage of TCS is its global presence.
OBJECTIVE

This Tata Consultancy Services( TCS) study aims to gain a comprehensive understanding of
TCS's operations, dissect the goods of TCS on colorful assiduity encyclopedically, and fete
the marketable social responsibility and moral tenets that have driven the business to success.
Tata Consultancy Services is like the central point where business, technology, and new ideas
come from. In this study, we want to concentrate on the company's work in detail,
particularly its organizational frame, services portfolio, delivery strategies, and global
footmark. By this study, we aim to gain a deeper understanding of how TCS serves its guests
and maintains its norms in the assiduity sector. This study examines TCS's benefactions to
several profitable sectors, creative husbandry, and the future of digital transformation. TCS
places a high precedence on moral, marketable conduct, cooperative duty, and
sustainability. It gives them a window into the impact of international pots like TCS on
original husbandry and ecosystems. Understanding this interplay between global business
elephants and factual husbandry is vital for informed policymaking. This report looks at
TCS's enterprise in pivotal areas similar as marketable governance, environmental
sustainability, diversity and addition, and community involvement. The value of this study on
TCS is extensive, furnishing helpful information to a wide range of stakeholders. It first acts
as a beacon for business directors looking for an in- depth understanding of successful
marketing tactics. They can learn precious assignments about achieving fiscal success and
moral virtue by studying TCS's operations. It shows them how large enterprises like TCS
affect indigenous husbandry and ecosystems. For effective policymaking, it's essential to
comprehend how original husbandry and international pots interact. This in- depth
disquisition of Tata Consultancy Services aims to reveal the complex web of an transnational
IT that has continually handed value to its guests, told multitudinous request corridors, and
supported moral and sustainable business practice.
 ANALYSIS AND FINDINGS

BACKGROUND AND HISTORY OF THE MNC TCS

"Many years ago, there was an industrial revolution. We (India) missed it due to
(factors over) which we had no control. Today, there is a new revolution - a
revolution in information technology, which requires neither mechanical bias nor
mechanical temperament. Primarily, it requires the capability to think clearly. This we
have in abundance. We have an opportunity even to assume leadership. If we miss
this opportunity, those who will follow us will not forgive us for our tardiness and
negligence." 1

- FC Kohli, Deputy Chairman of TCS.

TATA Consultancy Services Limited is an Indian multinational company specializing in

information technology services and consulting. TCS headquarters is located in Mumbai,
Maharashtra. It is a well-known member of the Tata Group operating in 46 countries in 150
locations. As of 2022, TCS boasted a global workforce exceeding 600,000 employees.

The second-largest Indian company is TCS which is renowned for market capitalization and
is internationally accepted as one of the most valuable IT services brands, holding the top
position among Big Tech companies in India. TCS's ranking as the 64th most innovative
company in the world in Forbes "World's Most Innovative Companies" list in 2015, it is the
prominent enterprise in India for the IT service companies.

In June 2023 TCS is renowned as the world's second-largest IT company. In 2018, it secured
the 11th position on the Fortune India 500 list. More than 70% of Tata Sons' dividends were
attributed to TCS, underlining its substantial contribution to the Tata Group's financial
performance. TCS, previously known as Tata Computer Systems, was a branch of Tata Sons
Limited from 1968 to 2005. TCS began its journey by providing punched card services to
Tata Steel, working on the Inter-Branch Reconciliation System for the Central Bank of India,
and offering bureau services to Unit Trust of India. TCS's commitment to innovation was
evident in 1975 when it developed SECOM, an electronic depository and trading system for
SIS SegaInterSettle, and automated the Johannesburg Stock Exchange. TCS also collaborated
with Swiss partner TKS Teknosoft, which it later acquired. It further expanded its offshore
development capabilities by establishing India's first client-dedicated offshore development
centre in 1981. TCS's role in handling the Y2K bug was pivotal. It introduced the Euro by
creating a factory model for Y2K conversion and developing software tools for automated
conversions. In 1999, TCS introduced its "Beyond the Obvious" tagline.

In 2005, TCS marked a major milestone by becoming a publicly listed company. The same
year, it entered the bioinformatics market and changed its tagline to "Experience Certainty."
TCS demonstrated its versatility by designing an ERP system for the Indian Railway Catering
and Tourism Corporation in 2006. By 2008, TCS's e-business activities were generating over
US$500 million in annual revenues.

In 2011, TCS expanded into the small and medium enterprises market with cloud-based
offerings, and by the end of that year, it achieved the highest market capitalization of any
India-based company, surpassing Reliance Industries. In the fiscal year 2011–12, TCS
reached annual revenues exceeding US$10 billion for the first time.

TCS's commitment to innovation and collaboration was seen in its 2017 agreement with
Aurus, a payments technology startup, to provide payment solutions for retailers using TCS
Omni Store. TCS China was formed in the same year as a joint venture with the Chinese
government. Tata Sons sold $1.25 billion in TCS stock in a bulk transaction in March 2018.

In January 2021, TCS briefly reclaimed this title, attaining a market capitalization of $170
billion, while also becoming India's most valuable company with a market cap of ₹12.55
trillion. In 2021, TCS further expanded its presence in the job market by hiring 43,000
individuals in H1 FY22.

TCS also emphasized its platforms and products business, valued at approximately $3 billion
in October 2021, with a focus on cloud platforms and SaaS platforms. In 2021, TCS
underwent a rebranding initiative, changing its tagline from "Experience Certainty" to
"Building on Belief."

CORPORATE STRUCTURE AND GOVERNANCE

Corporate governance is critical in defining an organization's or business firm's direction and

performance. It is the framework that governs the interactions of an organization's numerous
stakeholders. The primary actors in corporate governance include:
The Chief Executive Officer (CEO) and Top Management: The CEO, as the highest-ranking
executive, holds a key role in shaping and implementing the organization's strategies and
policies. The top management team, led by the CEO, is critical to putting the company's goal
into action.

The Board of Directors: The board of directors oversees, guides, and directs the
organization's strategic direction. The board of directors is responsible for making critical
decisions and ensuring the company's adherence to ethical and legal norms.

Shareholders: Shareholders are the owners of the company, and their interests lie in the
financial performance and overall well-being of the organization. They utilise their influence
through voting and ownership rights.

In essence, a corporation is an entity through which capital is acquired, invested in assets that
produce goods and services, and subsequently distributed.

Board Composition and Diversity:

TCS's board is characterized by a high degree of diversity in terms of experience and cultural
background. The board is composed of individuals with varied backgrounds and expertise
from different regions and cultures. TCS can thus reflect the goals and subtleties of the
nations in which it works.

Principles of Corporate Governance and Boardroom Effectiveness:

TCS follows a set of principles and practices to enhance boardroom effectiveness and ensure
good corporate governance:

Avoidance of Conflict of Interest: The board is committed to avoiding situations where

personal interests could compromise the company's objectives.

Transparency and effective governance of related party transactions are required to avoid
conflicts and sustain ethical business practises.

Sustainability Agenda Board Oversight: The board actively participates in and oversees
sustainability activities, showing TCS's commitment to environmental and social
responsibility.
Fiscal Oversight: The board is vested with the responsibility of overseeing the company's
financial matters while also protecting the interests of stakeholders.

Independent and Effectiveness Validation: TCS seeks to maintain independence within the
board, and board members assess their own effectiveness to continually improve governance.

Disclosure and Transparency: TCS places a high priority on open and transparent disclosure
of information to shareholders and the public.

Ethics and Compliance: Upholding ethical standards and ensuring compliance with relevant
regulations and laws is a fundamental aspect of TCS's corporate governance.

Minority Shareholder Interests: The board takes steps to ensure that minority shareholders'
interests are protected, as well as that the decision-making process is fair.

Employee Access to the Board: TCS may have processes in place that allow employees to
contact with or access the board, establishing a sense of inclusivity and transparency.

Sustainability and risk management are actively addressed by the board, in accordance with
the company's long-term strategy and principles.

Succession Planning: Effective succession planning for key leadership roles is a crucial
component of TCS's governance practices.

Remuneration Policy: TCS maintains a remuneration policy that aligns executive

compensation with performance and long-term shareholder value.

TCS is all about being ethical, diverse, open, sustainable, and in line with the company's
values and objectives. This is reflected in the company's structure and boardroom rules.

ORGANISATIONAL STRUCTURE

Tata Consultancy Services (TCS) follows a mechanistic organizational structure, which is

characterized by several distinct features:

1. High Degree of Work Specialization: In a mechanistic structure, tasks are highly

specialized, and employees are typically assigned specific roles and responsibilities. This
ensures efficiency and expertise in each area.
2. Rigid Departmentalization: TCS's structure involves well-defined departments or divisions,
and these divisions are clearly separated and specialized in their functions.

3. Many Layers in Managerial Hierarchy: The hierarchy within TCS consists of numerous
levels, indicating a structured and layered approach to management and decision-making.

4. Narrow Span of Control: This means that each manager has a limited number of
subordinates. The narrower the span of control, the more layers are present in the hierarchy,
creating a top-down management style.

5. Centralized Decision-Making: Decision-making authority is concentrated at the higher

levels of management. Major decisions are made by top-level executives, and there is a clear
chain of command for approval and execution of decisions.

6. Long Chain of Command: The chain of command in TCS is lengthy, indicating the flow of
authority and communication from top-level management down through multiple layers of
management to the lower levels.

7. Tall Organizational Structure: The organization's structure is tall, signifying the presence
of multiple hierarchical levels, from top executives to lower-level employees.

The figure provided illustrates the hierarchical structure of TCS, emphasizing the many
layers of management and the centralized decision-making process. This structure is in
contrast to an organic organizational structure, which is typically flatter, with fewer layers of
management and a more decentralized approach to decision-making.

In a mechanistic structure like TCS, the emphasis is on efficiency, control, and clear
authority, making it suitable for large organizations with complex operations.

GLOBAL OPERATIONS

Tata Consultancy Services (TCS) reached a critical milestone in 2014 when it was named the
fastest-growing IT services brand in the world by Brand Finance, a prominent brand value
consultancy. This award recognised TCS's strong growth and expanding brand value in the IT
services sector. The following are the important points from the announcement:
Brand Finance acknowledgement: Brand Finance, a prominent brand valuation consultancy,
examined the dollar value of TCS's reputation, image, and intellectual property and named it
the fastest-growing IT services brand in the world.

TCS achieved significant growth in its brand value, with an increase of US$3.04 billion in
2013, reflecting a stunning 58% year-on-year growth rate. Given that TCS's brand worth was
barely US$2.3 billion in 2007, this growth was substantial.

Total Brand Value: TCS's total brand value reached US$8.2 billion, positioning it among the
top four brands in the IT services industry. This recognition marked the second consecutive
year in which TCS achieved this status.

TCS's total brand value hit $8.2 billion, placing it among the top four brands in the IT
services market. This was TCS's second consecutive year of receiving this honour.

Highest grade (AA+): TCS received the industry's highest grade of AA+, emphasising its
outstanding brand reputation.

TCS attributes its global growth and reputation to rising global demand for digital services, as
well as its reputation for industry-leading delivery and execution.

TCS makes concerted attempts to localise its brand presence in numerous markets and to
actively connect with the economic, social, and community fibre of those regions. Investment
in Brand Presence: The corporation made significant investments in its global brand
presence, including marketing and public relations campaigns, sports sponsorships, and
corporate social responsibility activities in important areas.

CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

TCS is dedicated to Corporate Social Responsibility (CSR) and operates on the basis of the
principle of "impact through empowerment". TCS has a wide range of CSR initiatives in
various fields, such as education, health and the environment. These initiatives are
implemented through voluntary activities, financial contributions and the use of its IT
capabilities. Additionally, TCS has a dedicated Board CSR Committee, which is structured
according to Section 135 of the Law. The committee consists of an independent director and
a non-independent director. It is responsible of overseeing and directing TCS's CSR
initiatives. TCS' initiatives are categorized according to themes of interest, such as Education
& Skill Building, Adult Literacy Programme, UDAAN, and more.

EMPOWER: TCS's programs empower individuals through various means, such as

technology and education.

Academic Interface Programme (AIP): TCS collaborates with academic institutions to bridge
the gap between education and industry requirements.

Advanced Computer Training Center (ACTC): Offering advanced computer training to equip
individuals with IT skills.

TCS IT Wiz: A quiz program aimed at promoting IT knowledge among students.

Rural IT Quiz: An initiative that helps build IT awareness in rural areas.

TCS Maitree Village Development Programme: Focused on sustainable development in

villages.

BPS Employability Programme: Enhancing employability in the Business Process Services

(BPS) sector.

Avasara Learning Academy: An educational program aimed at empowering young women.

TCS's CSR efforts are extensive, tackling numerous social and educational challenges.

TCS's participation in a diverse range of activities and themes which are supposed to have a
positive impact on society shows its commitment to CSR.

It's also worth noting that TCS is not to be confused with Levi Strauss & Co. (LS&Co.),
which is noted at the conclusion of the text as a separate business that has received the
Golden Peacock Global Award for Excellence in Corporate Governance.

CONCLUSION

This is a brief study on the MNC Tata Consultancy Services( TCS). In this, we have provided brief
information about the MNC and how this project would help the audience to get information about
the company. In this, we have also offered objectives of conducting this research, that is, on how this
research would be beneficial for others. This study also shows in-depth analysis and findings. It
provides brief information about the history of the company and also talks about the corporate
structure and governance. We have also done a brief form on the organisational structure of the
company, which focuses on the main points such as High Degree of Work Specialization, Rigid
Departmentalization, Many Layers in Managerial Hierarchy, Narrow Span of Control, Centralized
Decision-Making, Long Chain of Command, and Tall Organizational Structure. We have also done an
analysis of global operations and, corporate social responsibility, and sustainability.

BIBLIOGRAPHY

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