in a Dynamic Environment - Domain-b

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Annual Report 2008-09 Consistent project managementprocesses and tools.Multi-Tiered Infrastructure Multi-continent and interconnecteddevelopment center network State-of-the-art telecommunicationsnetwork with redundancies Global collaboration tools.2.3 Integrated Full Services Offering: TheCompany continues to build on its ‘Full ServicesOffering’ that offer global customers anintegrated portfolio of services including acomprehensive range of IT and Applicationrelated services, Remote InfrastructureManagement, BPO and Engineering services,front-ended by a strong, domain- led GlobalConsulting Practice. This suite of integratedservices continues to present an exciting valueproposition for global corporations and isgaining traction in the market place. Theoperational strategy captures the entire valuechain of IT - from consulting to products andsolutions and from implementation to support.2.4 Strategic Acquisitions: In addition tosustaining strong organic growth, the Companycontinues to closely look at acquisitions that arestrategic in nature. Through inorganic meansthe Company may look to fill gaps in its servicesportfolio, enter new geographies or marketsegments as well as insource domain andtechnology expertise. The strategic acquisitionsdone over the years which have created newcapabilities within the Company have startedyielding synergistic growth.With the acquisition of the captive BPO unit ofCitigroup the Company supplemented itsportfolio of offerings for the global bankingand financial services industry by addingbanking operations capabilities. The acquisitionbrought over 12,000 consultants with strongdomain expertise into the TCS fold. Along withTCS’ strong Banking and Financial Services (BFS)expertise, end-to-end offerings, comprehensiveproduct suite and scalable processes theCompany believes it is well positioned to servicethe integrated IT-BPO needs of its customers inthe fast changing BFS landscape. The significantstrategic value creation which was the driverof this strategic acquisition by TCS was creationof a sizable business with market leadershipposition. Post the acquisition, TCS has becomethe second largest integrated BPO player fromIndia with over 25,000 professionals. The BPOoperations now encompass seven verticals,executing over one billion plus transactions,with full services capability, 24x7 operations andmulti-domain, multi delivery locations acrossthe globe.2.5 Non Linear Growth Strategies: As a longtermstrategy, the Company continues to investin Non-Linear Growth initiatives that will allowthe Company to drive revenue growth withoutcommensurate growth in the number of peopleemployed. The Company is focused on threegrowth initiatives.2.5.1 Asset Leveraged Solutions: The Companycontinues to invest in building products andsolutions for select verticals and markets. Onepillar of this initiative is the strategic businessunit, TCS Financial Solutions, that is focused onbuilding and selling software products to theglobal financial services industry from capitalmarkets and securities trading and settlementto core banking products and other risk,compliance and private banking products. Otherverticals where the Company is building inframeworks and solutions include thegovernment and life sciences verticals.2.5.2 Platform-based BPO: Platform-based BPO,which involves combining IT with operations tocreate a standardized technology-led platformfor process execution, is an important longtermnon-linear growth initiative for theCompany. We have already launched a fewplatforms in areas like life and pensionsprocessing, human resource outsourcing andlook forward to launching new platforms infinance and accounting as well as procurement.2.5.3 Small and Medium Business Initiative: TCShas recently launched a new ‘IT as a service’ forSmall and Medium Business (SMB) sector,initially in India. Given the complexities involvedin the SMB sector adopting IT, the Companysoffering that allows SMB firms to use IT on apay-as-you-use model greatly simplifies ITadoption and allows SMB firms to leveragetechnology to grow their business and becomemore competitive. Once matured, this modelwill be leveraged in other markets which havea significant presence of SMBs.52
2.6 Organisation: From April 2008, TCS effecteda organizational restructuring aimed ataligning the organization closely to theCompany’s business strategy and operatingimperatives. The new organization consists ofindividual business units structured as industrysolution units for the major markets in the USAand Europe; independent business units in newgrowth markets like India, Asia Pacific, LatinAmerica, Middle-east and Africa; and strategicbusiness units to drive new non-linear growthinitiatives.The integrated customer-centric units helpenhance customer focus, drive operationalagility and address new growth opportunitiesin the market. The new ‘global operating model’has provided customers with a single view ofthe Company, encompassing project deliveryand relationship management and enabled asharper focus on the customer. This newoperating model has stabilized during the yearand is delivering value to the customers.The flat structure, enables closer collaborationamong the leadership teams in each operatingunit which helps the Company remain agile andadapt to rapidly changing market conditionsacross industries and markets. It enables theCompany to retain talent as it provides greaterleadership opportunities across theorganization and enables each business unit tohave the space and headroom to grow withoutlosing the benefits derived from TCS’ scale, sizeand geographical reach.The new organizational framework ultimatelyhelps to ensure that customers can ‘ExperienceCertainty’ in their relationship with TCS as itprovides a clear customer focus and enables usto be close to the customer as a virtual extensionof their organization.2.7 TCS’ Global Footprint: The Company isinvesting in developing and optimizing its globalpresence, in order to pursue opportunities inglobal markets on an ongoing basis and has140 offices in 42 countries as well as 101 solutioncenters in 18 countries. The Company has 8near-shore solution centers in 7 countries and93 global solution centers in 27 locations in 10countries. (See Chart 13)The TCS sales organisation has been aligned tomeet the needs of the customers. As at March31, 2009, TCS had 23 offices in USA and Canada,11 offices in 7 countries in Iberoamerica, 9offices in UK and Ireland, 22 offices in 12countries in Europe, 18 offices in 12 countriesin the Asia Pacific region and 7 offices in 6countries in the Middle East and Africa. In India,TCS had 56 offices in 13 locations.Chart 13: TCS’ Global FootprintAs on 31 st March 20092.8 Market Presence: In terms of geographies theCompany continues to grow in multiplegeographies, particularly in mature marketslike North America and Europe including theUnited Kingdom, The Company has increasedits focus on the Western European markets likeGermany, France, Benelux and the Nordic regionas well as emerging markets like Latin Americaand Asia Pacific regions. The Company has alsobeen investing in emerging markets such as theMiddle East, Africa and Eastern Europe,identified as future high growth markets. TCS’geographical growth strategy has a twopronged approach focused on major marketsand new growth markets.2.9 Major Markets: The Company continues tofocus on serving large global clients andgrowing its business in the major markets,namely North America, Western Europe, theUK and Ireland. The key focus in these maturemarkets is on growing our wallet share in keycustomer accounts and penetration of new keyaccounts using our integrated full services andthe GNDM TM offerings through a verticalapproach. This focus allows the Company topush for aggressive growth using a client centricstrategy. The Company has numerous multiyearrelationships established with globalmultinationals in these markets and has beenproviding them a multiple range of services.2.10 New Growth Markets: The Company has beeninvesting in emerging or new growth marketssince 2003 and has achieved significant size andscale in Latin American markets like Brazil,Chile, Mexico, Argentina, Colombia and Ecuador,where over 6,000 professionals are workingwith global, regional and national corporations.We have increased our presence in the AsiaPacific region including China and the otherAsean countries, as well as Eastern Europe,Middle-East and Africa. The Company continuesto remain committed to investing in the fastdeveloping market in India. New growth53
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Annual Report 2008 - 09agilityina D
Page 3 and 4: ContentsBoard of Directors 2Our Lea
Page 5 and 6: Laura M ChaIndependentDirectorDr. R
Page 7 and 8: N ChandrasekaranChief Operating Off
Page 9 and 10: Your Company remained focused on he
Page 11 and 12: "TCS is a valued customer, supplier
Page 13 and 14: “Nielsen is moving quickly to tra
Page 19 and 20: Board of DirectorsR N Tata (Chairma
Page 21 and 22: Management TeamFunctionNameIndustry
Page 23 and 24: 3. DividendBased on the Company's p
Page 25 and 26: The Company has also been rated by
Page 27 and 28: 11. Corporate SustainabilityIn keep
Page 29 and 30: 13. Corporate Governance Report and
Page 31 and 32: Annexure to the Directors’ Report
Page 33 and 34: Expenditure on R&D(Rs. in crore)Yea
Page 35 and 36: Sr. Name Age Designation Gross Net
Page 49 and 50: DECLARATION REGARDING COMPLIANCE BY
Page 51 and 52: Chart 3: IT Services spends by indu
Page 53: B. FOCUS AREAS OF THE COMPANY1. Vis
Page 57 and 58: Company also offers PerformanceMana
Page 59 and 60: 4. R&D and Innovation Labs: TCS est
Page 61 and 62: Chart 24: Diversity: Global work fo
Page 63 and 64: The Company’s ability to bid for
Page 65 and 66: Corporate Governance practices and
Page 67 and 68: TCS LIMITED (UNCONSOLIDATED)RESULTS
Page 69 and 70: eduction in cost of software licens
Page 71 and 72: FINANCIAL POSITION - TCS LIMITED(UN
Page 73 and 74: Deferred tax assets (net)Details of
Page 75 and 76: Cash flow from investing activities
Page 77 and 78: RevenuesRevenues from operationsThe
Page 79 and 80: The primary reasons for the decreas
Page 81 and 82: obligations under finance lease was
Page 83 and 84: Rs.137.03 crore as at March 31, 200
Page 85 and 86: COMPANY'S CONSOLIDATED PERFORMANCE
Page 87 and 88: INTERNAL CONTROL SYSTEMS AND THEIR
Page 89 and 90: Name of Category Number of Board Wh
Page 91 and 92: (v)The composition of the Audit Com
Page 93 and 94: (ix)Group Health Insurance as separ
Page 95 and 96: Capital and revenue budgets and cap
Page 97 and 98: (vi)Market Price Data:High, Low (ba
Page 99 and 100: (xi) Shareholding as on March 31, 2
Page 101 and 102: COMPLIANCE CERTIFICATETO THE MEMBER
Page 103 and 104: ANNEXURE TO THE AUDITORS' REPORT(Re
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trading in shares, securities, debe
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INCOMEProfit and Loss Account for t
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Schedules forming part of the Balan
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Schedules forming part of the Profi
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SCHEDULE ‘Q’ - NOTES TO ACCOUNT
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services are rendered. Revenue from
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3) The Company has given undertakin
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The estimate of future salary incre
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Particulars Geographic Segment (Rs.
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ii) TCS Financial Solutions Austral
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(Rs. in crores)Particulars Holding
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(Rs. in crores)2009 2008Remuneratio
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19) Micro and Small Enterprises(Rs.
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Number of Number of Gross AmountNon
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No. of Shares* Tata Consultancy Ser
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AUDITORS’ REPORT ON CONSOLIDATED
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Consolidated Profit and Loss Accoun
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Schedules forming part of the Conso
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SCHEDULE ‘D’UNSECURED LOANSSche
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e) DepreciationDepreciation other t
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Dividends are recorded when the rig
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Name of the Company Country of Perc
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3) Acquisitions / Divestmenta) On M
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Funded retirement benefits Indian F
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7) Unbilled revenue as at March 31,
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Particulars Geographic Segment (Rs.
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B) Transactions with related partie
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2009 2008(Rs. in crores)(Rs. in cro
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Net loss on derivative instruments
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Rs. in croresSr. Name of the Subsid
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Awards and RecognitionsWall Street
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