TCS Info
by
Rahul on January 31, 2009
I just came about some infos by Google Search, hoped to share with my friends. Here they are.
TCS may call back 20% onsite staff in US
TCS, India’s largest software company, is planning to move about a fifth of its employees working onsite at various locations in the US
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to India, as general slowdown and reduced client requirements have declined the need for a large workforce in the US. According to a person familiar with the development, a communication was sent last week to various middle and senior-level management personnel, informing them about the proposal to shift people back to India, following a sharp fall in client requirements.
However, a TCS spokesperson, when contacted, strongly denied that 20% of the staff in the US was being moved back to India. “In the current environment, moving work to offshore locations (to India) is the focus for the company and its customers, as this helps optimize costs and increase operational efficiencies for both TCS and its customers,” he said, adding that less than 5% of TCS’ total US staff strength have come back to India in December 31, 2008.
The Tata Group company employs close to 14,000 employees in the US, who service many blue chip clients in the banking and financial services, auto and other manufacturing sectors.
Typically, most of the client requirements, include a combination of what is called ready-to-serve (RTS) work and enhancement work or value-addition. Since the slowdown in the US, most clients have completely stopped the enhancement work and hence require lesser number of people for delivering solutions onsite.
The move to shift personnel reflects the current hard economic reality where IT companies have to look seriously at cost reduction measures. A TCS employee working on a large banking project in the US said that fellow employees had been asked to return from the US, as clients had made certain project management positions redundant. While the number of such people are spread across the hierarchy, the number of people asked to shift is more in case of employees with around four years of work experience.
As the slowdown in the US accelerates, clients of TCS are asking the company to offshore its work. A large automaker and rental agency in the US, which is a TCS client, has decided to offshore its work, as it helps them save cost by more than 50%.
According to TCS, its off shoring locations model takes care of such changing dynamics, along with improving its bottom-line. TCS spokesperson said that the company has a business model which is based on delivering services from offshore locations using the Global Network Delivery Model to global customers. “We are constantly working towards increasing the amount of work done from offshore locations in India and elsewhere. Our effort to increase the amount of work done from India has resulted in an offshore shift of 270 basis points in revenues in the past two quarters. The proportion of revenues earned from offshore location has increased from 40.9% (of revenues) at the end of first quarter, compared with 43.6% at the end of third quarter.” However, off shoring work in India could become more difficult if the new US administration introduces tax rebate plans for companies employing the US citizens to retain work within the US.
Politically, the outsourcing model will be under pressure in the US. Two US senators, Dick Durbin and Chuck Grassley, have recently asked for stricter H1-B visa norms, which would increase costs and make it difficult for Indian IT companies to send employees onsite. On the other hand, the bill will also ask these companies to pay prevailing wages to H1-B workers, making offshore outsourcing more attractive.
(Source of this information is here)
TCS bags $100 million deal from UK's 4U Group
The country's largest software exporter, Tata Consultancy Services, on Wednesday said it has signed a $100 million deal for providing IT services to UK-based 4U Group.
Under the agreement, TCS will provide a full range of IT and business change services to the 4U Group to enable the group to increase capacity, boost skills, create a more flexible IT model and enhance the business to meet current and future demands, the company said in a filing to the BSE.
4U Group is the holding company behind Phones 4U and other firms in the UK telecommunication and financial services marketplace.
The services would also include service management, application support, maintenance, data centre and desktop services, networks and communications and management of third party contracts for the company's retail operations, it added.
"This significant contract win underlines the important role that TCS plays in enabling UK businesses to enhance their competitiveness and retain market share, especially in the current economic environment," TCS VP and Country Manager (UK and Ireland) A S Lakshminarayanan said.
(Source of this information is here)
TCS leads race for Sony’s $100-million outsourcing deal
India’s largest software exporter TCS is leading the race to win an outsourcing contract worth $60-100 million from Sony, the Japanese electronics giant struggling under huge losses and a high cost operating structure.
“As part of its attempts to reduce cost of managing IT operations, Sony is discussing a contract to manage its desktops and servers over 3-5 years,” a person familiar with the discussions told ET on condition of anonymity.
While ET could not independently verify the details of this contract, at least two people familiar with the development confirmed that Sony is evaluating vendors. When contacted on Thursday, a TCS spokesperson said the company would not comment on specific customer contracts yet to be awarded.
This is the first in a series of IT contracts - valued at over $250 million - to be awarded by the world’s second-largest electronics maker over the next two years. With this, Sony joins other global biggies like Citi, GE, BT and BoA, which are expected to award around $4-billion worth of new outsourcing contracts this year.
TCS is seen as a frontrunner because of its existing relationship with the electronics maker. “Sony also works with Satyam for SAP development and maintenance. However, current developments at the scandal-hit company are not going to help it win new projects,” said a senior executive at a top Indian tech firm requesting anonymity.
Tokyo-based Sony announced last week that the company would make savings of over $2 billion by reducing operational costs at its electronics unit, apart from undertaking several restructuring measures, including outsourcing. Sony projected a full-year operating loss of around $2.9 billion for 2009, the company’s first loss in 14 years. TCS shares inched up 0.45% to Rs 509 on Thursday. The stock has gained 2.58% over the week and 6.74% over the month.
“Companies, which have not leveraged outsourcing beyond application development and maintenance, will expand their global outsourcing in terms of scale and scope,” said founder of Mindplex Consulting Sabyasachi Satyaprasad.
Customers such as Sony, with around $40 million offshore IT spend, are likely to outsource newer projects of infrastructure management and back-office work, as they derive cost benefits from their ongoing engagements.
Infrastructure management is going to be the next growth engine for Indian outsourcing companies, as more customers seek to outsource management of their IT infrastructure, including desktops and servers.
(Source of this information is here)
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this point of time adding to the woes of his competency . Certainly he has seemed to be pretty strategic in appointing and selecting his staff. 
Ananda will enjoy their success and many people will congratulate them after they managed to broadcast a small blurry video clip of her. The images got published in many leading newspapers like the 
And to their delight, they have support from, guess who..the one and only Mamata Banerjee. Synonymous with anti-development in Bengal nowadays, people widely has started tagging her “wherever she is, 
company to shambles !! 
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