The Tata Consultancy Services (TCS)
Tata Consulting Services (TCS) is a company that makes use of effective and qualified personnel and skill development activities to gain a competitive market base. The company uses IT personnel with low costs to increase the company’s productivity in delivering services to its clients. Engineers which were hired were first trained extensively, and the equipped the trained personnel to work in different positions in management and technical fields. TCS also has an extensive recruitment program that was partnered with leading colleges and universities (Wee and Bauche 4). The best students that these institutions produced were captured by the TCS, they gave them job offers and recruited them as junior consultants. By having the best students as their employees, they were expected to move into project management positions in a shorter period. This was followed by TCS's recruitment of mathematics and science graduates in a bid to cater to the rising demands for engineering talent. These were trained to become software professionals thus enabling the company competed in all fronts.
As a continuum of their personnel training, TCS developed a remarkable training program for developing IT and keeping pace with technology developments and changing demands of the increasing number of clients. They did this by investing five billion rupees for a training and development campus that had two major streams. The induction program focused on the development of software professionals with project management competencies, and the continuous learning program whose primary aim was to upgrade the essential skills for the career development of consultants (Wee and Buche 5). The vigorous training and qualities acquired by the trainees in these two major streams were paramount to the market competitiveness realized by TCS.
TCS used a systems approach in their training program. They considered both internal and external factors to drive their company forward and maintain the high standards. The compensation structure catered for experience in all domains and was at par with the industry (Wee and Buche 7). 30% of the salary was paid at the beginning of every quarter and was variable in nature. Employee benefits was another mode of system approach. The employees were provided with subsidized canteen facilities and health insurance that incorporated their families. The ‘Adopt Leave Policy' also served as an incentive. In addition to the above, TCS's bond period was restricted to two years with the majority of those who left before the time was over being forced to pay up. Career development at TCS offered a great career growth path for employees. They could work abroad and gain new technological knowledge in various fields. All these were done while ensuring customer satisfaction by delivering quality services to their clients and thus maintaining their place in the IT market.
Their leadership approach to multicultural interactions seems well placed since they were aiming at conquering various countries. It was, therefore, wise to have different cultures well represented in their managerial positions as these people could be sent back to their native regions with better skills. Multidimensional leadership still has a place in TCS. This may be used in any level of management, especially in the induction process.
The pros of using low-cost labor include a large number of potential employees from whom they can choose. It is also easy to get an excellent workforce especially in a foreign country that offers it. The wage bill is manageable. The cons include employees complaining about how hard they have to work, the need to be careful with labor in central managerial positions and the risk of losing customers via poor services.
TCS’s mix of services is exemplary. They had different physical places in Mumbai and China before growing to become a global entity. Their products in IT were well marketed and had a good promotion strategy from the recruitment of graduates to the managing of the firm. They also delivered quality services. These were paralleled by significant growth in infrastructure and workforce. In the current setting, I would recommend for more ventures in the less encroached continents like Africa and Australia so as to make their presence felt there.
If I were to use design-based thinking at TCS, I would use it to come up with more technologically advanced programs that would make work easier for the users. I would collect data on the most desired technology forms and IT services and use it to come up with an even better entity that would draw more customers to the firm and its products.
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Work Cited
Wee, Beng Geok, and Ivy Buche. Tata Consultancy Services: A Systems Approach to Human Resource Development. Harvard Business Publishing, 2008.
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