TATA

CONSULTANCY
SERVICES LIMITED

Company Background 71,000 employees. It registered a CAGR of 34

per cent from 2001-06.
Tata Consultancy Services Limited (TCS)
is a leading IT services provider. It started its TCS in the EU
operations in 1968 and is a part of Asia's largest
business conglomerates – the Tata Group.The TCS entered the EU in 1975 by opening an
company offers a comprehensive range of services, office in the UK. Since then, it has opened several
including consulting, IT, business process offices across the EU. It opened its first European
outsourcing, banking and financial services, IT software research and development centre in
infrastructure, engineering and industrial services, Budapest, Hungary, in 2001. The company has
and product-based solutions. alliances with several leading technology
companies in the EU that have helped it in having
Currently,TCS has a presence in 35 countries a better understanding of the region and building
across six continents. Its sales offices are grouped a strong presence in the EU. It has strategic
under seven geographical headquarters – North partnerships with several EU companies such as
America, Ibero America, the UK, Continental TKS Teknosoft SA in Switzerland and France,
Europe, Middle East and Africa, India, and Asia GANYMED Computer and Budke System
Pacific. At the end of the financial year 2005-06, Beratung in Germany, Artech A/S in Denmark
it was a EUR 2.48-billion-revenue company with and Azul Ltd. in Finland. Currently, it is running
its offshore development centres for Ericsson,
Geographic Percentage Revenue Distribution
of TCS for 2005-06 MAN B&W Diesel A/S and SIS SegaInterSettle
AG in the EU.
6%

13% TCS is also collaborating with local universities

in the EU for joint research programmes aimed
at facilitating the company’s recruitment process.
Some of TCS’ major subsidiaries of in the EU are
22%
59% as follows:

TCS in Hungary
TCS established its first European development
Americas
centre in Hungary in 2001 to bring its software
Europe
solutions development and delivery close to its
India European clients.The company selected Hungary
Others Source: Company Website
for setting up its development centre because the
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 TCS’ Major Subsidiaries in the EU

Subsidiary Name Country Revenue (EUR

million): 2005-06

Tata Consultancy Services Netherlands BV. The Netherlands 35.94

Tata Consultancy Services Deutschland GmbH Germany 35.68
Tata Consultancy Services Sverige AB. Sweden 21.91
TCS Italia SRL Italy 9.62
Tata Consultancy Services Belgium SA. Belgium 9.53
Diligenta Limited United Kingdom 9.09
Tata Consultancy Services de Espana S.A. Spain 4.05
Tata Consultancy Services Luxembourg S.A Luxembourg 2.31
Financial Network Services (Europe) Plc UK 0.49
Tata Consultancy Services Portugal Unipesoal Limitada Portugal 0.17

Source: Company Website

country offered a well-educated workforce. alliances with major companies such as Microsoft,
This development centre is equipped with world IBM, Oracle and SAP.
class infrastructure facilities and has a workforce of
over 160 consultants from various countries.The It provides services across sectors such as
centre is also ISO 9001:2000 certified and is IT and business consulting, IT infrastructure, BPO,
helping TCS to serve not only its European clients engineering and industrial services, and asset-based
but also its other global clients. In addition, the solutions.TCS has two subsidiaries in the UK,
centre was ranked among the top 20 in the Diligenta Limited and Financial Network Services
’Large Company Category’ in the Hewitt Best (Europe) PLC. In 2002, it also opened a
Employers Survey, 2005, in Hungary. development centre in Guildford, Surrey.

TCS in the Netherlands Diligenta Limited

TCS has a centre in Amsterdam, Netherlands, In October 2005,TCS announced plans to enter
which is equipped with state-of-the-art the life insurance and pensions BPO market in the
infrastructure.The centre serves the entire EU UK with the UK-based Pearl Assurance Group.
market and enhances the company’s capability This initiative led to the formation of Diligenta
in providing end-to-end IT services. It also has Limited, which provides BPO services to the UK
research partnerships with the Rotterdam School Life Assurance industry and currently employs
of Management, Aalborg University, Denmark, and 950 personnel.
Erasmus University, Netherlands.
Financial Network Services (Europe) PLC
TCS in the UK It was acquired by TCS in 2005 to provide solutions
TCS began its operations in the UK in 1975. to the banking and financial services industry.
After the USA, the UK is the second-largest
market for TCS. It has over 5000 consultants Awards and Achievements of TCS in the UK
working for more than 130 UK clients. Currently, it • TCS was recognised for its ‘Outstanding
has nearly 200 permanent employees and 8 offices Contribution to the UK Knowledge Economy’
in the UK. Its head office is in London, and it has by UK Trade & Investment.
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• It received the ‘Investor in People’ recognition, Intellectual Power
which sets national standards of good work TCS has a team of over 70,000 professionals,
practices in the UK.TCS is the first global representing one of the strongest human resource
IT solutions company to achieve this recognition. pools in the world.The company has skills and
• The company was ranked among the ‘Top Ten expertise across the entire spectrum of
ICT Employers in the UK’ for 2005 by The technologies and industries. Its locally-recruited
Corporate Research Foundation, Computing employees in the EU provide an understanding
Magazine. of the business environment in the region.The
company’s continuous and rigorous training
TCS in Sweden programmes enable it to deliver best-in-class
TCS has a fully owned subsidiary in Sweden,TCS services to the customers in the EU.This is
Sverige AB, which acquired Swedish Indian IT reflected by the fact that 95 per cent of its business
Resources AB (SITAR) in May 2005. SITAR was comes from satisfied customers who reward it with
TCS’ exclusive partner in Sweden and a non- repeat business.
exclusive partner in Norway. SITAR’s client list
includes Ericsson, IKEA,Vattenfall and Hutchison. Best Human Resource Practices
This acquisition has enabled TCS to deal directly TCS is known for its human resource practices
with end-customers and increase its market share in India as well as globally. In the EU, it continues
in the region. to be the employer of choice and has the lowest
attrition rate of 9.9 per cent.The company lays
TCS in Other EU Countries emphasis on the overall development of its
TCS is also present in the following EU countries employees and also offers multi-lingual capability
through its sales and marketing offices: training modules.TCS enables its employees to
• Belgium meet their career objectives through rotation
• Denmark across projects, functions and locations globally.
• Finland It also helps employees in building new skills and
• France competencies, and promotes knowledge sharing
• Germany and team building.
• Italy
• Luxembourg Network Delivery Model
• Spain TCS has pioneered a network delivery model that
enables it to provide services to customers
Factors for Success through a combination of near-shore, regional and
global delivery centres.This helps it in adding value
The Global-Local Edge to its clients by effectively addressing regulatory,
With over 5,000 consultants working on its UK language and time-zone requirements. Moreover, it
and Ireland projects, TCS possesses an excellent combines its system integration expertise, flexible
understanding of the business environment and global delivery model and deep industry insights
technological issues faced by companies in the with the technological expertise and capabilities of
EU. Because of this, TCS is able to leverage its its partners to offer a competitive advantage to its
global business and technology expertise to customers.
provide faster and superior-quality solutions to
its EU clients.
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 One-stop Shop
In the EU,TCS provides overall business solutions
such as consulting, IT services, BPO services,
product-based solutions, etc. As a result, a
customer does not have to go to various vendors
for different services. Further,TCS provides
services to several industries such as banking,
telecom, etc., which enhances its market potential.

Future Plans

Life and Pension Industry

TCS’ UK subsidiary, Diligenta, is focusing on the
life assurance market in the BPO domain. In April
2006, Diligenta secured a EUR 752-million deal
with Pearl, a Peterborough-based closed fund
group. It is focussing on providing BPO services
in processing and administration to the life
assurance and pension industries.

Focus on Europe
Due to the economic slowdown in the US, the
company is focussing on revenue growth fromthe
EU. It hopes to win some major contracts, such the
EUR 203.66-million one with ABN AMRO for
offshoring 200 jobs.

TCS plans to hire a large number of employees

from Eastern Europe. It is also planning to expand
its operations in East European countries such as
Hungary and Romania.

www.tata.co.uk

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