Tata Consultancy Services (TCS) has a hybrid organizational structure that is both product-driven and matrix-based. It is divided into 12 Industry Solution Units aligned with key industry verticals. While focused on major markets, TCS is also expanding into new growth regions. It offers a wide range of IT solutions and services through horizontal business units. Though bureaucratic, TCS relies on relationships and flexible work culture over rigid processes and rules.
2. Contents
Organizational Design of TATA Consultancy Services Limited: .................................................. 3
Industry Solution Units: .................................................................................................................. 3
Major Markets:................................................................................................................................ 4
New Growth Markets:..................................................................................................................... 4
Strategic Initiatives: ........................................................................................................................ 4
Corporate Functions: ....................................................................................................................... 4
Product Structure: ........................................................................................................................... 5
IT Solutions and Services: .............................................................................................................. 6
Assurance Service Practice: ............................................................................................................ 6
Business Intelligence & Performance Management (BIPM) Practice: ........................................... 6
Global Consulting Services: ........................................................................................................... 7
The Reuse Program: ........................................................................................................................ 7
IT Infrastructure Services: .............................................................................................................. 7
Engineering and Industrial Services (EIS):..................................................................................... 7
Conclusion: ..................................................................................................................................... 7
Page 2
3. Organizational Design of TATA Consultancy Services Limited:
Tata Consultancy Services Limited is an IT and IT enabled Services Outsourcing organization
encompassing IT Business Consulting and Software Application Development and Services delivered
worldwide through its benchmark Global Network Delivery Model (GNDM) that ensures a level of
certainty to its client network. It is a part of India’s largest business agglomerate, the TATA Group, and
has over 2.5 lakh employees and operations spread across more than 40 countries around the globe.
The organizational model of TCS is a hybrid between Global Product Structure and the Matrix Structure.
Operationally it is predominantly a Product Driven Model divided into Industry Solutions Units which
also has reporting structure based upon Geographies. The design is modular to enhance client
experience. The structure is illustrated in the below diagram.
Source: TCS Knowledge Repository
Industry Solution Units:
TCS is aligned into 12 key Industry Solutions Unit which are agile structures modeled on industry verticals and
headed by autonomous ISU heads to ensure customer focus based upon the philosophy of specialization and
nearness to customer. The ISUs are listed below.
Page 3
4. Energy Resources and Utilities
Insurance
Banking and Financial Services
Retail and Consumer goods
High Technology
Telecom
Media and Information Services
Government
Life Sciences and Health Care
Manufacturing
Travel, Transportation and Hospitality
GE
Major Markets:
The Major Markets represent bulk of TCS’s revenue stream and is part of its geographical alignment concentrated
on North America, Western Europe, the UK and Ireland. These areas are a source of large Accounts for TCS where
its leverages its diverse product offerings and multiyear relationships.
New Growth Markets:
TCS is also according greater focus to the Asia Pacific region and the emerging new growth markets of India, Latin
America, Eastern Europe, Middle-East and Africa as part of its diversification strategy due global economic
uncertainties plaguing its traditional source of revenues from the more established markets.
Strategic Initiatives:
TCS has several Strategic initiatives targeted at development of future growth areas which also serves its current
portfolio.
•
•
•
TCS Financial Solutions: B@NCS is a banking product which covers a wide range of financial products and
services and is marketed actively across large and medium financial institutions.
Platform based BPO: Platform BPO is a voice and non-voice business process outsourcing technology
platform targeted at streamlining backend processing of large multinationals.
Small and Medium Business: ION is a software platform targeted towards transformation of Small and
Medium Businesses.
Corporate Functions:
Shared Services groups provide organization wide services to streamline product offerings to leverage
synergies both in terms of technology and corporate functions.
Page 4
5. •
•
•
•
•
Process Excellence Group (PEG):Responsible for streamlining processes and best practices and
disseminating them across various units for a unique and consistent customer experience. This
includes Knowledge Management, Integrated Quality Management System, Business Excellence
and Security.
Technology Excellence Group (TEG):Responsible for streamlining complex technology products and
tools and defining applicability across the organizations. These include technology architecture
excellence, technology application design and delivery and technology performance excellence.
The group is also responsible for technology tracking, internalization, competency building, and
asset creation.
Administration Group: Responsible for planning and provisioning technology and operational
infrastructure for TCS and technology infrastructure support.
Resource Management Group: Responsible for the availability and deployment of resources for all
operating units.
Delivery Excellence Group (DEG):The Delivery Excellence Group assures TCS clients certainty of
experience in product delivery and standardization across operating units. The core functions
include as below.
•
•
•
•
•
Adoption of best-in-class processes, tools and competencies
Driving collaboration and synergy
Promoting reuse
Effective governance
Continuous improvement
Product Structure:
TCS provides a wide range of products and services across the IT value chain and each such function is
leveraged at ISU level. These are horizontal structures which cater to ISU requirements on need basis.
•
•
•
•
•
•
•
•
•
•
•
•
Application Development and Maintenance
Engineering and Industrial Services
Enterprise Solutions
Technology Solutions
Business Intelligence
Global Consulting Services
Package Implementation
IT Infrastructure Services
Systems Integration
Assurance Services
Asset Based Services
Business Process Outsourcing
The broad level diagram is illustrated below with brief descriptions on a few strategic units.
Page 5
6. Source: TCS Knowledge Repository
IT Solutions and Services:
This offering includes Application Development and Maintenance, Technology Solutions, Migration and
Re-engineering, Performance Management, Package Implementation, Systems Integration, Enterprise
Solutions, Business Intelligence and Assurance (Testing) Services.TCS’ SOLAR framework is a Service
Oriented Architecture framework which enables the convergence of Enterprise Integration, Business
Intelligence and Content Management Initiatives for its clients.
Assurance Service Practice:
This is the Software Testing Services which is independent from delivery and has separate reporting
structure to ensure quality deliverables.
Business Intelligence & Performance Management (BIPM) Practice:
The Business Intelligence & Performance Management (BIPM) practice in TCS is focused on providing
industry-specific solutions across applications, processes and analytics. Key offerings from the BIPM
Practice include:
•
•
•
•
Page 6
SOLAR
BIDS
SIGMARG
Knowledge Management Methodology
7. Global Consulting Services:
Global Consulting is the Business and IT consulting services which are targeted at business
transformation of client businesses and adoption of IT frameworks for optimal efficiency. Business
consulting services help clients envision innovative solutions for complex client organizations. IT
consulting services ensure that the client's IT strategy is closely aligned with their business
transformation imperative.
The Reuse Program:
The Reuse Platform is based on the TCS Knowledge Repository with advocates reuse ensuring scalability,
saving of man hours and at the same time ensures organization wide consistency. Following are the key
focus areas for the Reuse program.
•
•
•
•
•
•
•
•
Improved quality control and ownership of assets in the platform
Connect with multiple repositories
New Demand capture mechanism
Benefit measurement
Branding, positioning and promoting success stories
Driving Platform administration and adoption
Ensuring community engagement and quality assurance
Developing TCS wide competency in all aspects of Reuse
IT Infrastructure Services:
IT Infrastructure Services (IT IS) offering has enabled TCS to establish itself as an end-to-end IT service
provider. It is a strategic horizontal business unit of TCS and was formed with the view to provide a focal
point for supporting and providing Infrastructure Services to customers.
Engineering and Industrial Services (EIS):
The Engineering Services Practice is targeted at the Manufacturing and allied verticals and offers
solutions in Geo Spatial Technologies,Plant Design Engineering,Plant Automation Services and Product
Engineering.
Conclusion:
Though TCS has set up a nimble organizational design that caters to the dynamic external environment
with adequate boundary spanning, as part of the organization for the last seven years I feel that it is
overtly bureaucratic in its structure without much scope of creative pursuits at the lower levels. For an
organization which is now unmanageable at more than 2.5 lakh employees the policies and procedures
laid down are often flouted by mid-level managers at their convenience. Redressal is often lost in the
quagmire of several levels of hierarchy. Mechanisms that are in place for employee concern, though well
designed are generally silent spectators and follow a top-down approach based on relationships
Page 7
8. remaining dependent at the choice of the implementer who is often the trespasser and not on natural
justice. But the juggernaut rolls on as the work is often low end technical work and the company focuses
on volumes and not quality.
Indian Management essence in the TCS context(Question 2):
I had been a part of TCS for over seven years and have worked across different locations and units to
have a reasonable understanding of the Management Values and Practices followed at least at the
project unit level.
The Management style is completely human centric and relation based. Though clearly defined rules and
processes are laid for each and every activity, seldom are they followed during actual work and only
cosmetically applied during periods of audit and compliance surveys. In that sense the work culture is
mostly flexible but remains contingent on mid-level managers’ way of functioning. Generally Project
Managers and Group Leaders are personnel who have risen up the ranks without formal management
training by virtue of time spent in the organization. Relationships play an important role in such
promotions and competence of the person is not a necessary criterion. These people are basically
assigned man management roles and are very rarely able to provide guidance on functional of technical
aspects. However, separate horizontal, technical and functional, units provide the necessary inputs for
projects teams.
Work culture is generally on ad-hoc basis with work pressure increasing exponentially during times of
deadlines due to lack of planning. Every large delivery is marred by crisis at the end where the situations
are retrieved based on the performance of a few high performing individuals who burn their mid-night
oil when all laid down rules and procedures are ensconced to the trash. Crisis is an interesting period
during each project delivery. Managers who let high performing individuals take control, even with
those whom they don’t share a particularly good relationship, are able to sail through but for managers
who exercises political power in such situations fail miserably often resulting in loss of huge revenues.
Curtains however never come down on failed managers who are accommodated in some other divisions
as a face saver.
The question of rewards and recognition is also at the sole discretion of the Managers who often
overlook competence in favor of flattery. Nevertheless, there are competent managers, but such
aberrations are few and far apart.Since the focus of the organization has gradually shifted from high end
technical work to routine low end technical; work creative leverage has been replaced by an assembly
line of people, whose time spent on the cubicle is all that matters.
(Views expressed are personal and based on experience)
References:
TCS Knowmax Knowledge Repository
Page 8