Thursday, July 17, 2008

Tasting Critical Success

2008 happens to be the pay-off year for TCS and Ramadorai

Though the year 2007 started with great pomp & show for Tata Consultancy Services (TCS), as it topped the list of 10 best performing IT services providers worldwide (rated by Global Services), it didn’t turn out to be quite a year for them. With the rupee appreciating, the IT giant (otherwise constantly on a high), was somewhat sitting low. But, with S. Ramadorai, the company’s dynamic CEO, at the helm, TCS is all set to once again start taking the global IT bull by the horns.

Ramadorai, with his sharp business acumen, plans to start the year by launching an embedded systems facility in Tokyo in February and later on a Microsoft centre of excellence in Beijing (in the second quarter of 2008). This move will serve to propel the company’s growth chart in these high potential markets. Apart from this, a $140 million deal with Ecuador’s largest private bank Banco Pichincha and a $140 million deal with BSNL (already in TCS’s kitty) will turn out to be big revenue generators for the IT major in 2008. Says an IT analyst, on conditions of anonymity, “TCS is focusing more on global delivery model & as a part of this strategy they will be concentrating on Latin American markets this year.”

An offshoot of the multi-billion dollar Tata Group, TCS has even consolidated its operations in Uruguay & Argentina into a single unit and plans to double its workforce to 2,400 over the next 2-3 years. These units will provide near- shore services to clients in Latin America, the US & Europe. Moreover, the Indian IT giant has set itself a target of achieving a revenue mark of $10 billion by 2010 as a part of its 10X10 vision and has successfully managed to already achieve something close to $5-6 billion till date. However, in order to achieve the rest of it, the company plans to focus more on inorganic growth avenues in 2008. On being asked as to how TCS can realise their 10X10 vision, an IT analyst suggests, “Market trends reveals that they are increasing their success rate and are focusing on non-linearity in revenue. The two most important areas of focus are large deals and revenue generation.”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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