This Case is about COMPETITIVE STRATEGY, GLOBALIZATION, IT
PUBLICATION DATE: April 24, 2009 PRODUCT #: IB79-HCB-ENG
In February 2008, as S. Mahalingam (Maha), CFO of Tata Consultancy Services considered the tactical challenges dealing with TCS, challenges faced exclusively by the elite section of IT services businesses: IBM Global Services, Computer Sciences Corporation, Accenture, KPMG, and others. The crucial problem was how to keep a breathless yearly growth rate of 35 to 40 percent without losing 25 to 30 percent gross profits. Maha: “By 2010 we need to become a $10 billion-a-year business making 25 percent gross profits”.Tata Consultancy Services Globalization of IT Services case solution
Placement and the business’s strategy, combined with a good variety of macro variables and superb performance breaking its manner, had put it front and centre in the direction contest for world-wide IT services. Since the early 1990s, TCS had grown quicker, made more cash, created a better brand and standing, and invested more heavily (as a percent of sales) in its future than its Indian or international competitions.
The question on the mind of Maha was whether TCS had the correct strategy to continue as it planned to become the first Indian technology firm to join the $10B sales club to outmaneuver its rivals.