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Corporate Strategy

Growth has been the key theme of TCS' journey so far. Learn more about TCS and the strategy it is pursuing for continued longer-term growth.

Corporate Overview

Tata Consultancy Services Limited (TCS) is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring an unmatched level of certainty. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model™ (GNDM™). 

Learn more about TCS in the Corporate Facts section.

The Growth Opportunity

TCS operates in a large, growing global market for IT and IT-enabled services. Globally, organizations are spending more on IT as new technologies emerge, offering unique opportunities to gain a competitive advantage. Moreover, industries and geographies that lagged behind others in leveraging technology are now catching up. Further, the proportion of IT services budgets that is spent on external providers is going up as the shelf-life of technologies is reducing and corporations are looking for greater efficiency and variability in their costs. With a minuscule market share in this growing market, there is much headroom for TCS’ longer-term growth. 


Worldwide Market for IT and IT-enabled Services

Total worldwide spent on IT Services and Business Process Delivery (no reliable estimates available)
Worldwide spent on external providers of IT and IT-enabled services in CY2014: $ 948Bn, CAGR of 3.1% estimated over 2013-19
TCS revenue in CY2014: $ 15.1Bn, a market share of 1.6%

Strategy For Longer-Term Growth 

TCS’ strategy for longer-term growth is to continually extend the core IT services business by expanding its geographic reach, industry coverage and service capabilities and deepening existing client relationships, building or acquiring emerging businesses and adopting or creating new business models and business solutions through continuous innovation.

Key elements of this strategy are summarized here:

  • Customer-centricity
  • Full Services Capability
  • Global Network Delivery Model™ (GNDM™)
  • Strategic Acquisitions
  • Non-linear Business Models

Customer-centricity: We seek to build, nurture and deepen customer relationships so we are trusted strategic partners to our customers. Our industry-segmented, customer-centric organization is an important enabler that has ensured high levels of accountability, superior customer service and intimacy.

Full Services Capability: TCS has been investing in building a comprehensive,  integrated portfolio of services to capture the entire value chain of IT, presenting a compelling value proposition for global enterprises making us a one-stop shop for many key clients, significantly deepening the relationship and boosting our share of the wallet.

Global Network Delivery Model™ (GNDM™): TCS' GNDM™ lets us seamlessly and uniformly deliver services to global customers from multiple locations across India, China, Europe, North America and Latin America. Teams separated by time zones collaborate on projects, leveraging all of TCS' assets while subscribing to one global service standard. It uses multiple levers of time zone, language, skills and local business knowledge to deliver high quality business solutions seamlessly across the globe, using a globally connected workforce, integrated delivery processes and multi-tiered infrastructure. This model developed by TCS is now recognized as the benchmark of excellence in software development. For large clients expanding beyond their home markets, the scale and depth of our GNDM™ capability makes us their preferred strategic partner.

Strategic Acquisitions: While primarily focusing on organic growth, TCS is also open to selective strategic acquisitions in order to penetrate select markets, strengthen verticals and enhance service offerings.

Non-linear Business Models: TCS has been building non-linear growth businesses that can enable revenue growth without commensurate headcount growth. Non-linearity in the existing businesses comes from productivity-enhancing tools, frameworks, solution accelerators and managed services engagements.

In addition, TCS is pursuing three strategic initiatives for non-linear growth:

  • Software Products (Asset Leveraged Solutions)
  • Platform-based BPO services (Process Clouds)
  • iON – an IT-as-a-service solution for small and  medium business  

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