Tata Consultancy Services

Working with TCS

Beyond the obvious. For TCS, this is more than a mere signature line-It is a
philosophy. It dictates their approach to all our business functions, be it
consultancy or human resources.
What TCS Offers
TCS looks for talent and ambition to grow in its prospective employees. Their
streams of competence embrace everything from technology and strategy to
research and teaching. TCS also looks for versatility in its candidates, and it offers
you a choice of three distinct career paths.
In the technology domain, it offers a choice of working in the following areas:
 Industry/Service practice Strategy/consultancy
 Technology specialization
 System architecture/analyses
 Product specialization
 Business/technical analysis
 Technology support
 Designing/Developing

TCS Culture
TCS has an energetic and open work place environment, and a collaborative
culture that is based on teamwork. Pulling together is a central tenet of their work
ethic.
Energetic and full of enthusiasm, TCS employees enjoy their day (and night)
at work. Life at TCS is a stimulating and exciting experience. Not only do their
offences have a knack of working hard and partying harder.
Diversity at work
TCS is an equal opportunity employer and its employees come from many
nationalities and speak many languages. Further, since they believe in celebrating
everything under the sun, they sing carols at Christmas and do the dandiya dance at
Navratri with equal enthusiasm. Employees at TCS also go on regular outing, be it
with the project teams, with Maitree, or with just a bunch of other like-minded
colleagues. They go on treks, Nature camps. Picnics, or just bus rides whenever
they get the chance.
Doors are always open at TCS
The senior colleagues follow an open-door policy in which any associate can
approach the chief executive officer (CEO) and senior management with work-
related problems.
Communication is a big word at TCS and employees regularly
take part in webcasts and chat sessions, through which important corporate issues
or decisions are shared on real-time basis with associates worldwide.
They also have institutionalized open house sessions and engagement
programmes in which associates at all levels meet and discuss various work issues,
In addition, TCS employees can also take part in one-on-one sessions where they
can interact privately with the senior management. These sessions are helpful in
providing mentorship as well as understanding real-life issues that colleagues face
at work. The queries and discussions and formally recorded and followed up.
The Better half of TCS
Maitree, a fraternity comprising spouses of TCS employees, was formed with
objective of bringing employees. Was formed with the objective of bringing the
large and geographically widespread TCS community under a common umbrella.
Maitree has two distinct objectives. Primarily, it serves as an information-
Sharing body where useful titbits about living in a foreign country such as which
are the good schools in Minneapolis and where does one get Indian Spices in
Stockholm, are shared by TCS employees and their families.
 Maithree also functions as a forum where a wide range of socially relevant
activities are conducted, be it improving the environment or taking care of the less
privileged.
Challenges of being with TCS
The professional challenge that come with working for TCS are many and varied.
TCS has the Organizational strength, infrastructure, reach, and most importantly,
people to master these challenges and deliver out-standing quality to its clients.
Here is a primer on what Enables TCS to do that.

Clients TCS has developed IT solutions for over 800 clients across the world. Its
end-to-end solutions help its clients organizations gain efficiency in their business
processes. TCS has 95 branches all over the world, including 43 offices in the US.
They believe their global presence enables them to close to their clients. At any
given time, about 60% of their software professionals working at client locations in
different countries.
That their clients have high regard for their relationship with us is borne out by
an impressive statistic: over 75% of their business comes from repeat clients.

Quality levels when it comes to quality levels, systems and processes have been
placed at the top of the scale by various evaluating agencies:
 TCS has an organization-wide ISO 9001 certification.
 It has 14 ‘delivery centers’ spread across India operating at ‘level 5’, the
highest point of SEI CMM certification.
 TCS has over 1,100 ‘certified quality assessors’ (CQAs) among its people.
This is the single largest number of CQA employees for any organization,
and it constitutes over a third of CQA fraternity in the world.
 TCS was the first organization in the world to be assessed at PCMM level 4.
It indicates that they have developed measurable people practices by
empowering their workgroups, and by managing the capacity and
performance of their workforce. TCS currently has four centers functioning
at PCMM level 4.
 TCS has adopted ‘Six sigma’ practice at two of its centers, and has Six
sigma black belts in its fold.
This is the reason PCMM pioneer Dr. Bill Curtis, of Tera Quest, said about TCS’s
people systems and processes: ‘Absolutely impressive.’

Innovation TCS pioneered the offshore development methodology of software

delivery in India by setting up its first client-dedicated ‘offshore development
center’ (ODC) for Compaq back in 1984.
The ODC model enables clients to get calculate business benefits such as
reduced time to market and having a virtual extension of their IT department. TCS
currently has over 20-client-dedicated ODCs across India. This model has been
replicated by various companies and has led to the development of the India Inc.
brand in software development.
TCS developed the world’s first software factory in Pune in 1997. The Tata
Research Development and design Center (TRDDC) today produces industry-
specific software products, application, and products such as Mastercraft, which
uses models to generate solutions for all layers of software architecture, and Adex,
a modelling tool that offers a meta-modelling framework and is a repository for
storing application models.
Global outlook: From 1971, when TCS bagged its first international assignments to
now, with 140 offices across 26 countries, TCS is truly global in its scope of
operations.
The geographical proximity to its customers through its branches and 26
clients-dedicated offsite centers helps it serves their needs faster and better. Add to
this it’s rich experience in providing end-to-end InfoTech consultancy and services
to over 800 customers spread across the world and you have a company that is a
global powerhouse in its domain.

Training and Education

TCS sees the training and education of its people as a continuous value-adding
process. This approach hones, improves, and enhance its skills, and makes the
organization stronger.
 TCS invests about 4% of its annual revenue in training, a shining example of
which can be seen at the state-of-art training center in Thiruvananthapuram in the
south Indian state of Kerala.
Its Training modules (figure 7.5) have been developed to serve the specific
needs at various stages of development in the organization.
The ‘induction training programme’ (ITP), designed for all its recruits from
engineering colleges, is a specially designed 77 day training course at the
Thiruvananthapuram facility. The ITP is conducted with the objective of
transforming engineers from diverse disciplines into software professionals.
Then there are the ‘continuing education programs’ (CEPs), which cover over
300 topics and can be delivered over a variety of channels: classrooms, computers,
audio/video, contract sessions, seminars, conferences, and workshops.

Figure 7.5 Training and education at TCS.

ITP Project-Specific CEP’s IP/SP-Specific MDP’s

Fundamental concepts Application of Domain skills Role Based Focus on specaliased programmes Personal department
Of computing

Systems Engineering Platform specific skills 20 days learning per year Domain specific Business Management

Software Engineering Project specific products COTs on courses on technology Technology Management Development

Quality Systems & model New Technologies Technical Seminars/workshops Leadership

New Technologies Client-specific quality models OJT (specific projects) Financial Management

Case study/mini project JIT External Programme

Life skills
It’s dedicated training centers in Thiruvananthapuram, established in 1998, sprawls
over 58000 square feet. The center has 18 classrooms, a library, an auditorium, a
conference hall, discussion rooms, and faculty and administrative areas. The
facility has about 300 personal computers connected to serves.
TCS has 10 other centers in India fully equipped to conduct any type of training
programme.
Other benefits
TCS offers its employees a slew of benefits that go beyond the obvious. Important
as it is, the end-of-the month pay cheques is far from being the only measure of
how valuable it thinks its employees are.
The employees are provided with loans for housing, personal computers, high-
investment household goods, automobiles, etc.., and advance for housing
accommodation rental loans.
As a part of counselling, employees are counselled on mentoring, career
development, and stress reduction.
Culture
 Holiday homes across the country
 Picnics/get-togethers
 In-house gymnasiums and recreation facilities
Medical Medical insurance for employees and family (including50% for
dependent parents).Overseas
 Air fares for spouse and two children
 Competitive overseas allowances
 Medical Insurance coverage
 Special Language Training for non-English speaking country
assignments(Japanese/German)
 Assistance in accommodation and schooling Others
  Bank extension counters at offices
 Assistance in school admissions(for transferred employees and those
returning from overseas stints)
 Welfare trust facilitation for higher education
 Retirement benefits(provident fund, gratuity superannuation)
 Membership in Tata Sons Welfare Trust, Consultancy Employees Welfare
Trust, etc.

EVA Advantage
The ‘economic value added’ model that TCS follows ensures that the
compensation packages of its employees are determined by the value they bring to
the organization. The more they deliver, the more are their rewards.
Besides an extremely competitive compensation scale, TCS has adopted the
highly effective ‘economic value added’ (EVA) model. They are the first
organization in India to implement this competitive salary structure, which
determines compensation based on value delivered to the employer.
EVA allows one’s compensation to grow as fast as the results on produces. It is a
basis for measuring performance and bonus, and is measured at the enterprise and
department levels. The EVA system calculates profits after considering all costs,
including that of capital.
Recognition
TCS guarantees high motivation levels of its employees through competitive
compensation packages, stimulating job content, outstanding development
opportunities, and, not the least, an innovative recognition mechanism.
The various ways in which TCS recognizes its people are as follows:
 Project milestone parties-to encourage efficient execution of projects
 Recognition of Star performers/high fliers-to recognize outstanding talent
 Nominating to coverted training programme-to encourage self-development
 Best project award-to promote a spirit of internal competition across work
groups and to foster teamwork
 Best process improvement proposal(PIP) award-to encourage innovation and
continuous improvement
  Best auditor award-to acknowledge participation in critical support roles
 Recommendations for new technology assignments/Key position-to ensure
career progression and development of employees ‘full potential
 Spot awars-to ensure real-time recognition of employees
 Performance-based annual increments-to recognize high performers
 Early confirmations for new employees-to reward high-performing new
employees
 Long-service awards to-build organization loyalty
 EVA-based increments-to ensure performance based salaries
 On-the spot recognition-to guarantee immediate recognition of good
performance
Frequently asked Questions
How does TCS select its consultants? TCS carefully selects its consultants from
top universities and from various professional backgrounds. Consultant selection is
a planned operation involving aptitude tests, auditions, an interview process, and
the recommendations of the institute concerned.
What is the need for service agreements? On joining TCS, entrants are required to
sign service and confidentially agreements. In which they accept to stay with TCS
for the two years following their initial year of training, TCS invests a large portion
of its resources in training and therefore requires such an agreement to be signed
by permanent employees. The confidentiality agreement is aimed at providing
protection to the intellectual property rights of TCS and its clients.
Why are entrants required to sign overseas agreements?
The experience and skills acquired by consultants abroad are fruitfully used in
enriching the knowledge of their counterparts in India, and are also applied in
projects for Indian clients. TCS feels it is crucial to utilize this knowledge and
experience. It is, therefore, in the interest of the country and of TCS that overseas
deputation agreements are drawn up with its people.

How is location of work determined? The location of work is determined by the

following consideration:
 Location of the clients and the skills required by the client organization
  Redeployment of resources across branches to meet workload and skills
requirements
 Location rotation of people to widen their horizons and professional outlook,
and to provide opportunities to work as module leaders, project leaders, etc.

What are the features of the ‘health insurance scheme’?

All TCS employees and their families are covered under the New India Assurance
health are covered under the new India assurance Health insurance scheme. The
scheme provided by New India. TCS has, from time to time, got New India. TCS
has, from time to time, got New India to enlarge its scheme and enhance its
benefits.

What are the allowances provided for membership of professional Bodies? TCS
provides an allowance of $70(RS 3,705) to its consultants to become members of
reputed institutes and societies such as the Institute of Electrical and Electronics
Engineering and ACM. This enables consultants to receive the literature of their
use and interest and keep abreast of the Latest technology and science. And has
substantial facilities for providing materials for consultants to meet their work and
consulting needs.

Why does TCS make its recruits sign a bond?

TCS does not make any recruits sign a bond per se. However, there is a standard
service agreement that is more like a memorandum of understanding between the
individual and the organization. As you are probably aware, TCS invests
approximately 6% of its annual revenues in the training and development of its
employees. In value terms, that works out to upward of Rs200crore in year. In
addition to this formal training, there are host of professional development and
continuing education courses provided to groom them into world-class
professionals.
It is only fair that a service agreement is entered into to ensure that both TCS and
the recruits optimally benefit from these inputs for at least two to three years. TCS
would like its employees to be its partners in growth. TCS follows the ‘4E’
approach for individual development-explosure, expertise, and excellence. The
agreement acts as a potent instrument in aligning the recruit’s career with 4E
model.

What are the employee’s chances of going abroad?

For the first 18 months, TCS acclimatizes the new employees to the organization
and to consulting as a profession through its domestic projects. After this,
depending on project requirements, one gets a chance to prove one’s mettle in
overseas projects. It has generally been observed that TCS employee gets to go
abroad within 36 months of joining the organization.
Is there a practice of job rotation within projects?
Yes, because TCS believes in sharping the employees’ career, while ensuring that
their skills are maximized. Consequently, they get exposed to different industry
and service practices and software platforms. TCS follows a systematic job
rotation process.
TCS salaries are considered to be low, why?
Salary levels on offer may appear to be low. If View strictly in terms of the take-
home figure. However, compensation packages at TCS are designed scientifically.
After taking into account current market trends. They are, in fact, enriched because
they have short and long-term components. The following elements are considered
while designing a salary package:
 Long-term benefits such as provident fund and superannuation fund. These
are given due importance and factored into the overall package.
 Being a good corporate citizen, TCS honors the tax liabilities of its
employees. It does not disguise remuneration with clever tax evasion tactics.
 TCS follows the economic value added structure for remuneration. EVA is a
performance-based incentive model that links remuneration directly with the
value created by a TCS employee for the organization. So, EVA helps place
an employee’s remuneration literally in his or her own hands.
 Additionally, each compensation package has a number of welfare schemes
that are not obvious in the initial offer.
Bearing the above factors in mind, it becomes clear that a TCS employee’s salary,
contingent to performance, is on par with the best in the industry.

Is it true that TCS offers only maintenance projects?

It is not true. The TCS portfolio has a healthy distribution, from high-end
consulting to maintenance projects. Employees get opportunities to work on a wide
range of jobs. Furthermore, the job rotation system ensures that employees do not
get typecast or slotted into any kind of job permanently.
Does TCS allow its employees to take sabbaticals?
Yes. Deserving employees are granted sabbaticals, with the undertaking that their
newly acquired knowledge will add value to the company.

Has the global slowdown affected TCS?

In this day and age, when technology and networking have crunched distances and
melted boundaries, no business entity can remain totally insulated from the global
environment. However, due to its global presence, dynamic business strategies,
wide assignment portfolio, longstanding client relationships. And credibility, TCS
is confident of achieving significant business growth.
Issues of late, HR professionals at TCS have faced some major challenges, which
are hindering the organization’s performance. These challenges include the
following
 The levels of attrition in the company are high, especially during the boom
period.
 The high level of attrition at the middle and top management levels is
leading to disruption of schedules of project execution and also complaints
from the customers regarding transfer of knowledge.
 Some customers have been complaining that quite often TCS recruits
Youngsters from campus interviews and posts them on assignments with the
 client without proper training, leading to inefficient and low quality delivery
of services to the clients.
 Typically, the TCS strategy has been to recruit three times the man power
requirement, taking into consideration the employee attrition, in spite of this,
the high level of attrition is leading to problems in quality service, customer
Satisfaction, etc.

Questions
1. Critically analyze the quality levels at TCS.
2. Analyze the support for innovation in the organization.
3. Explain the emphasis on training and education and its facilitation in
building TCS as brand that attracts the best talents in the market.
4. Analyze the perks/fringe benefits available to TCS employees and the
contribution of these benefits to building TCS as an attractive brand.
5. Explain the reward mechanism in TCS that helps in retention of employees.
6. Critically analyze the recruitment/selection process at TCS.