Tata Consultancy Services, a giant at home, finds itself dwarfed overseas by the likes of IBM, HP and Accenture. We explore the strategy it's adopting to fulfil its dream of figuring among the top global IT services providers. . .
S Ramadorai should be full of uncontrollable glee. But he isn't. Mumbai-based Tata Consultancy Services, of which he is the chief executive officer, netted over $1 billion in profits last financial year and is on course to surpass the $7-billion revenue mark in 2008-09. Not surprisingly, it is India's largest information technology services provider, accounting for almost 15 per cent of Nasscom's software export target.
Yet, the emotion Ramadorai exudes is one of guarded optimism. For, he is looking beyond this financial year, beyond India's geographical boundaries, and beyond Nasscom's targets. He is aware that the frontline Indian IT services companies, even though they are legitimate success stories, continue to be small specks on the global outsourcing horizon dominated by IBM (annual revenue $100 billion), Accenture (over $25 billion) and Hewlett-Packard (over $100 billion), which recently acquired EDS.
Those that hold on to the tier-I position globally, say analysts, will have to have multiple lines of services and a global delivery model that also covers low-cost delivery centres such as the Philippines, China and Vietnam.
Image: Chief Executive Officer of Tata Consultancy Services (TCS) S Ramadorai. | Photograph: Dibyangshu Sarkar/AFP/Getty Images
Text: Leslie D'Monte, Business Standard.
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