About
Tata Consultancy Services Ltd
Tata Consultancy Services Ltd is a leading global IT services, consulting and business solutions organization. The company offers a range of IT services, outsourcing and business solutions. They also offer IT infrastructure services, business process outsourcing services, engineering and industrial services, global consulting and asset leveraged solutions. Their segments include banking, financial services and insurance; manufacturing; retail and distribution, and telecom.
The company is a part of Tata Group, one of India's most respected business conglomerates and most respected brands. They are headquartered in Mumbai. They are having 142 offices in 42 countries as well as 105 delivery centers in 20 countries. The company shares are listed on the National Stock Exchange and Bombay Stock Exchange of India.
Tata Consultancy Services Ltd was incorporated in the year 1968. Tata Sons Ltd established the company as division to service their electronic data processing (EDP) requirements and provide management consulting services. In the year 1971, they started their first international assignment. The company pioneered the global delivery model for IT services with their first offshore client in 1974.
In the year 1981, the company set up India's first IT R&D division, the Tata Research Design and Development Centre at Pune. In the year 1985, they set up their first client-dedicated offshore development center for Compaq (then Tandem). In the year 1989, they delivered an electronic depository and trading system called SECOM for SIS SegaInterSettle, Switzerland.
In the year 1997, the company opened their new corporate training facility at Trivandrum. In the year 1998, they started virtualization of business. In the year 1999, they got SEI-CMM Level 5 certification for their Qwest, HP, SEEPZ & Sholinganallur centres. Also, in the year 2000, they got SEI-CMM Level 5 certification for their Calcutta, Bangalore, Lucknow, Hyderabad, GEDC, Ambattur and Ahmedabad centres.
In the year 2001, the company completed the acquisition of public sector unit, CMC Ltd. In the year 2002, they expanded their geography into new growth markets like China/ Uruguay. In 2003, TCS became the first Indian software company to cross one billion dollars in revenue. The company saw outsourcing opportunity in E-Commerce and related solutions and set up its E-Business division with ten people. By 2004, E-Business was contributing half a billion USD to the company.
During the year 2004-05, the company acquired WTI Advanced Technology Ltd and TCS Business Transformation Solutions Ltd (Previously, Phoenix Global Solutions (India) Ltd), subsequently these two companies became the subsidiaries of the company. TCS tapped the capital markets in July 2004 in the largest private sector initial public offering (IPO) in the Indian market, raising nearly $1.2 billion. In August 9, 2004, the company became a publicly listed company.
During the year 2005-06, the company acquired three companies Comicrom S A, Chile, Financial Network Services (Holdings) Pty Ltd, Australia (FNS) and Swedish Indian IT Resources AB (SITAR). The company made strategic alliances with Diligenta Ltd for Life Insurance business. Also, they entered into a Joint Venture Agreement with the State Bank of India. The new company was formulated and named C-Edge Technologies Ltd (C-Edge) for providing advanced technology solutions and world-class domain consulting for the banking and financial services sector.
During the year, the company ventured into a new area for an Indian IT Services Company. In April 2005, Tata Infotech Ltd with their three wholly owned subsidiaries, namely Airline Financial Support Services (India) Ltd, Aviation Software Development Consultancy India Ltd and TCS Business Transformation Solutions Ltd were amalgamated with the company.
During the year 2006-07, the company in partnership with the Government of Madhya Pradesh formed a company, namely MP Online Ltd, for offering a wide range of computer enabled services in the State of Madhya Pradesh. The company through their wholly owned subsidiaries Tata Consultancy Services Asia Pacific Pte Ltd and Tata Consultancy Services Malaysia Sdn Bhd, subscribed to 100% share capital of PT Tata Consultancy Services, Indonesia, a company formed for providing consulting and IT related services in Indonesia
Tata Consultancy Services Netherlands B V, a wholly owned subsidiary acquired 75% equity interest in Switzerland based TKS - Teknosoft S A, for a consideration of Rs 368.06 crore. TCS FNS Pty Ltd, another subsidiary acquired 100% equity interest in an Australian based company, TCS Management Pty Ltd, for a total consideration of Rs. 15.75 crore. Also, TCS FNS Pty Ltd subscribed to 100% share capital of Financial Network Services Beijing Co Ltd to provide consulting and IT related services in China. The company, through their wholly owned subsidiaries Tata Consultancy Services BPO Chile S A and TCS Inversiones Chile Limitada, subscribed to 100 % share capital Tata solution Center S A, to provide BPO services in Ecuador.
During the year 2007-08, the company opened a centre in Cincinnati, USA, and a large centre in India at Hyderabad and laid the foundation for a large centre in Pune. They launched a major brand building initiative in order to articulate and propagate its new brand positioning. Also, they signed a new multi-year contract with Chrysler LLC for providing a comprehensive portfolio of IT services. TKS Services S.A., Quartz Software Technology S.A. and Tata Consultancy Services Financial Solutions Limited merged with Tata Consultancy Services Switzerland Limited with effect from April 1, 2007.
In May 25, 2007, the company through their wholly owned subsidiary, Tata Consultancy Services Do Brasil Desenvolvimento De Servicos Ltda, acquired 100% equity interest in a Brazil based Company, GT Participacoes S.A. Also, Tata Consultancy Services Do Brazil Desenvolvimento De Servicos Ltda and GT Participacoes S.A. have merged with Tata Consultancy Services Do Brazil Ltda with effect from July 1, 2007. In June 21, 2007, the company subscribed to 100% share capital of Tata Consultancy Services Morocco SARL AU, a company formed for providing a range of computer enabled services in Morocco. In July 13, 2007, the company through their wholly owned subsidiary, Tata America International Corporation, acquired 100% voting power in TCS Financial Management LLC.
In October 23, 2007, the company subscribed to 60% of the share capital of Tata Consultancy Services (Africa) (Pty) Limited, a Company formed for providing IT services and investing in companies in South Africa. In January 24, 2008, the company sold their shareholding interest in their associate Conscripti (Pty) Ltd, for Rs. 3.83 crore. In March 2008, the company opened their North America Delivery Center called TCS Seven Hills Park.
During the year 2008-09, the company acquired Citigroup Inc.'s (Citi) 96.26% interest in TCS e-Serve Ltd (formerly known as Citigroup Global Services Limited), the India-based captive BPO, for a total consideration of USD 504.54 million. In addition, Citi signed an agreement with the company to provide process outsourcing services to Citi and their affiliates for an aggregate amount of USD 2.5 billion over a period of 9.5 years.
During the year, the company through their subsidiary, Tata Consultancy Services Asia Pacific Pte Ltd, subscribed to 100% share capital of Tata Consultancy Services (Thailand) Ltd and Tata Consultancy Services (Philippines) Inc. In June 2008, the company got $11.5 million transformational deal to design, install and integrate a tax administration system for the Uganda Revenue Authority (URA). In July 29, 2008, the company won the highest incremental improvement award and moved to the Industry Leader position in the Tata Business Excellence Model ('TBEM') at the JRD QV Awards ceremony.
In October 22, 2008, the Tata Infotech Deutschland GmbH has merged with Tata Consultancy Services Deutschland GmbH. The merged entity is a wholly owned subsidiary of the company. In December 11, 2008, the company subscribed to 50% share capital of National Power Exchange Ltd, established to promote trading of electrical power in India.
In June 5, 2009, the company, through their wholly owned subsidiary, Tata Consultancy Services Canada Inc, acquired 100% interest in ERI Holdings Corp. In January 1, 2010, the company, through their wholly owned subsidiary, TCS Iberoamerica S.A., subscribed to 100% interest of TCS Uruguay S.A. In January 1, 2010, they purchased 100% interest of MGDC S.C., Mexico, through their wholly owned subsidiaries, TCS Uruguay S.A. and TCS Argentina S.A.
In June 2010, the company signed a multi-year outsourcing contract with Telenor Norway. In June 30, 2010, Syscrom S.A., Chile merged with Tata Consultancy Services BPO Chile SA, a wholly owned subsidiary of TCS Inversiones Chile Limitada. Also, Custodia De documentos Interes Limitada, Chile merged with Tata Consultancy Services BPO Chile SA, a wholly owned subsidiary of TCS Inversiones Chil Limitada.
During the year 2010-11, the company set up five subsidiaries namely, MahaOnline Limited, Diligenta 2 Limited, MS CJV Investments Corporation, Retail FullServe Limited and CMC eBiz Inc. Also, Financial Network Services (H.K.) Limited was liquidated and de-registered during the year.
The Company entered into an agreement with the Government of Maharashtra pursuant to which a new subsidiary company, MahaOnline Ltd (MahaOnline) was setup on July 28, 2010 with equity participation from TCS and Government of Maharashtra. MahaOnline provides online internet-based citizen services to the residents in Maharashtra. This citizen service portal is integrated with DigiGov, a state-of-the-art e-Governance solution developed by TCS.
In August 31, 2010, Diligenta Limited, a majority owned subsidiary, acquired the entire share capital of Unisys Insurance Services Limited (UISL), which provides life and pensions services to its clients in the UK. On this acquisition UISL was renamed as Diligenta 2 Limited.
In October 4, 2010, Tata America International Corporation - a wholly owned subsidiary, acquired 100% share capital of MS CJV Investments Corporation. Consequently, the group holding in Tata Consultancy Services (China) Co., Ltd. has increased from 65.94% to 74.63%.
In October 8, 2010, the Company acquired 100% equity share capital of SUPERVALU Services India Pvt Ltd from SUPERVALU Inc., one of the largest grocery retailers in North America.
In December 2010, the company launched their new business process outsourcing (BPO) center in the Philippines. The company won a contract for establishing and managing the State Data Centre for the state of Uttar Pradesh. In February 2011, they signed five year contract with du, the integrated telecom service provider in the United Arab Emirates. Also, they launched iON - a fully integrated information technology solution for Small and Medium Business (SMB). iON provides on-demand business solutions using scalable cloud computing technology. It has been developed to deliver IT in the third generation service model to SMBs.
In August 2011, the company and the Singapore Management University (SMU) announced the establishment of the TCS-SMU iCity Lab to be located at SMU. The collaboration agreement signed states the two organizations are partnering to create a new research facility to develop industry standards and IT frameworks for the emerging intelligent city (iCity) model of urban development.
In December 2011, Call Genie Inc. announced that it has entered into a five year reseller agreement with Tata Consultancy Services (TCS) the IT services, consulting and business solutions firm, whereby TCS will resell the full suite of Call Genie and UpSnap Mobile products worldwide.
In February 2012, the company signed a multi-year, multi-million euro contract with Europcar. After a rigorous evaluation process, Europcar Information Services (EIS), the company's IT subsidiary, selected TCS to manage strategic IT Services development for its French operations. Also, the company and Mitsubishi Corporation announced a new joint venture, Nippon TCS Solution Center Ltd, for the Japanese market. Nippon TCS Solution Center will offer a full service suite of IT, BPO and Infrastructure services to Japanese corporations. TCS Japan will have 60% stake with Mitsubishi Corporation having a 40% stake. The joint venture will also establish a nearshore delivery center in Japan.
In 2012, the company won various awards like SAP Award of excellence for best run value realization for Project Spectrum, innovation award in France. Achievers 50 Most Engaged Workplaces in US, Partner Impact Awards from SAP, 2011 Eaton Premier Supplier Award, 'People Choice' award from the US National Science Foundation etc. The company also signed deal with South Africa Nedgroup Insurance. During the year the company launched passport seva Kendra in Delhi and also launched new rapid implementation offering for Oracle Fusion HCM. The company signed agreement with Scandinavian Airlines for F&A platform and entered into agreement with UK-based hospitality business chain. The company bags prestigious contract from UK Home Office Department during the year under review.
In 2013, the company was placed as a Leader in Oracle Application Management Services by Leading Research Firm. The company completed the acquisition of French IT Services firm ALTI. The company Launched Mobile Telematics Solution for Auto Insurers. During the year, the company was Designated a Leader and 2012 Star Performer in Capital Markets Application Outsourcing by Everest Group Research. The company was also selected by Nokia as a global IT Partner. The company expands UK operations in Liverpool. During the year the company was Placed as a Leader in Oracle Application Management Services by Gartner. The company also received Partner Excellence Award From Pegasystems, Inc. The company also won multiple Corporate Engagement Awards in Europe.
On 9 April 2013, TCS signed definitive agreements for the acquisition of 100 percent equity shares in Alti SA, an IT services company in France, for a value of 75 million Euro in an all-cash transaction.
In 2014, the company Launched New Digital Software & Solutions Group to Transform Digital Commerce and Customer Centricity.The company was selected by Diageo as a strategic partner during the year under review. The company introduced New Software Assurance Solution Co-Developed with Nissan during the year. During the year, the company was also Recognized as a Leader' in Retail Banking BPO by NelsonHall. The company received numerous awards during the year such as the companies TCS UK wins Gold Award for Innovation in Learning', op Workforce Award at the 2014 Diversity and Inclusion (DANDI) Awards Ceremony, Prestigious Association of Management Consulting Firms Award, wins Leading Vendor Award for Quality Assurance Services. During the year, the company was named Exclusive Certification Services Provider for CDMI Conformance Testing by SNIA. The company was also Positioned as a Leader in Capital Markets BPO by Everest Group.
On 21 April 2014, TCS announced the merger of TCS Japan, IT Frontier Corporation (ITF), Mitsubishi Corporation's (MC) 100 percent IT subsidiary, and Nippon TCS Solution Center (NTSC) to create a strong IT services unit in Japan.
On 16 October 2014, the Board of Directors of TCS and CMC approved merger of CMC with TCS. The swap ratio for the merger was fixed at 79 equity share of Re. 1 each of TCS for 100 equity shares of Rs. 10 each of CMC.
In 2015, the company signed a multi-year partnership deal with UK-based leading airline, Virgin Atlantic Airways (VAA), as Virgin Atlantic Airways selects TCS to support Digital Transformation programme. The companies Research Scholarship Programme expands to reach 200 more Computer Science PhD's in India. During the year, the company consolidates its long term partnership with the City of Amsterdam. During the year the company has been recognised by Ovum as a leader in the Ovum Decision Matrix. The company was also recognized as a Leader and Star Performer in Capital Markets Application Outsourcing Services by Everest Group. Europe's largest ever survey of business leaders ranks TCS 1 on both performance and customer satisfaction. During the year, the company also has won three different awards at the Brandon Hall Group Awards. Singapore Airlines and the company Introduce Mobile Solution for Cabin Crew. During the year under review, the company was recognized as the industry's fastest growing brand over last five years. The company also enters into strategic partnership with iRise. The company Launches Business Process Innovation, Simulation & Visualization as a Service (VaaS). The company Expands operations by opening a new Banking and Financial Services(BFS) center in Singapore. The company Wins 2015 SAP Pinnacle Award - Euroclear Finland launches Infinity, powered by TCS BaNCS for Market Infrastructure. The company was ranked as the 57th leading brand in the US by Brand Finance. During the year, the company Announces Premier Partnership with Adobe for Digital Marketing Solutions and Services. The company also announces Global Strategic Partnership with FICO during the year under review.
In 2017, TCS China was set up as a joint venture with the Chinese government and other partners.
Tata Consultancy Services Ltd
Company History
Tata Consultancy Services Ltd is a leading global IT services, consulting and business solutions organization. The company offers a range of IT services, outsourcing and business solutions. They also offer IT infrastructure services, business process outsourcing services, engineering and industrial services, global consulting and asset leveraged solutions. Their segments include banking, financial services and insurance; manufacturing; retail and distribution, and telecom.
The company is a part of Tata Group, one of India's most respected business conglomerates and most respected brands. They are headquartered in Mumbai. They are having 142 offices in 42 countries as well as 105 delivery centers in 20 countries. The company shares are listed on the National Stock Exchange and Bombay Stock Exchange of India.
Tata Consultancy Services Ltd was incorporated in the year 1968. Tata Sons Ltd established the company as division to service their electronic data processing (EDP) requirements and provide management consulting services. In the year 1971, they started their first international assignment. The company pioneered the global delivery model for IT services with their first offshore client in 1974.
In the year 1981, the company set up India's first IT R&D division, the Tata Research Design and Development Centre at Pune. In the year 1985, they set up their first client-dedicated offshore development center for Compaq (then Tandem). In the year 1989, they delivered an electronic depository and trading system called SECOM for SIS SegaInterSettle, Switzerland.
In the year 1997, the company opened their new corporate training facility at Trivandrum. In the year 1998, they started virtualization of business. In the year 1999, they got SEI-CMM Level 5 certification for their Qwest, HP, SEEPZ & Sholinganallur centres. Also, in the year 2000, they got SEI-CMM Level 5 certification for their Calcutta, Bangalore, Lucknow, Hyderabad, GEDC, Ambattur and Ahmedabad centres.
In the year 2001, the company completed the acquisition of public sector unit, CMC Ltd. In the year 2002, they expanded their geography into new growth markets like China/ Uruguay. In 2003, TCS became the first Indian software company to cross one billion dollars in revenue. The company saw outsourcing opportunity in E-Commerce and related solutions and set up its E-Business division with ten people. By 2004, E-Business was contributing half a billion USD to the company.
During the year 2004-05, the company acquired WTI Advanced Technology Ltd and TCS Business Transformation Solutions Ltd (Previously, Phoenix Global Solutions (India) Ltd), subsequently these two companies became the subsidiaries of the company. TCS tapped the capital markets in July 2004 in the largest private sector initial public offering (IPO) in the Indian market, raising nearly $1.2 billion. In August 9, 2004, the company became a publicly listed company.
During the year 2005-06, the company acquired three companies Comicrom S A, Chile, Financial Network Services (Holdings) Pty Ltd, Australia (FNS) and Swedish Indian IT Resources AB (SITAR). The company made strategic alliances with Diligenta Ltd for Life Insurance business. Also, they entered into a Joint Venture Agreement with the State Bank of India. The new company was formulated and named C-Edge Technologies Ltd (C-Edge) for providing advanced technology solutions and world-class domain consulting for the banking and financial services sector.
During the year, the company ventured into a new area for an Indian IT Services Company. In April 2005, Tata Infotech Ltd with their three wholly owned subsidiaries, namely Airline Financial Support Services (India) Ltd, Aviation Software Development Consultancy India Ltd and TCS Business Transformation Solutions Ltd were amalgamated with the company.
During the year 2006-07, the company in partnership with the Government of Madhya Pradesh formed a company, namely MP Online Ltd, for offering a wide range of computer enabled services in the State of Madhya Pradesh. The company through their wholly owned subsidiaries Tata Consultancy Services Asia Pacific Pte Ltd and Tata Consultancy Services Malaysia Sdn Bhd, subscribed to 100% share capital of PT Tata Consultancy Services, Indonesia, a company formed for providing consulting and IT related services in Indonesia
Tata Consultancy Services Netherlands B V, a wholly owned subsidiary acquired 75% equity interest in Switzerland based TKS - Teknosoft S A, for a consideration of Rs 368.06 crore. TCS FNS Pty Ltd, another subsidiary acquired 100% equity interest in an Australian based company, TCS Management Pty Ltd, for a total consideration of Rs. 15.75 crore. Also, TCS FNS Pty Ltd subscribed to 100% share capital of Financial Network Services Beijing Co Ltd to provide consulting and IT related services in China. The company, through their wholly owned subsidiaries Tata Consultancy Services BPO Chile S A and TCS Inversiones Chile Limitada, subscribed to 100 % share capital Tata solution Center S A, to provide BPO services in Ecuador.
During the year 2007-08, the company opened a centre in Cincinnati, USA, and a large centre in India at Hyderabad and laid the foundation for a large centre in Pune. They launched a major brand building initiative in order to articulate and propagate its new brand positioning. Also, they signed a new multi-year contract with Chrysler LLC for providing a comprehensive portfolio of IT services. TKS Services S.A., Quartz Software Technology S.A. and Tata Consultancy Services Financial Solutions Limited merged with Tata Consultancy Services Switzerland Limited with effect from April 1, 2007.
In May 25, 2007, the company through their wholly owned subsidiary, Tata Consultancy Services Do Brasil Desenvolvimento De Servicos Ltda, acquired 100% equity interest in a Brazil based Company, GT Participacoes S.A. Also, Tata Consultancy Services Do Brazil Desenvolvimento De Servicos Ltda and GT Participacoes S.A. have merged with Tata Consultancy Services Do Brazil Ltda with effect from July 1, 2007. In June 21, 2007, the company subscribed to 100% share capital of Tata Consultancy Services Morocco SARL AU, a company formed for providing a range of computer enabled services in Morocco. In July 13, 2007, the company through their wholly owned subsidiary, Tata America International Corporation, acquired 100% voting power in TCS Financial Management LLC.
In October 23, 2007, the company subscribed to 60% of the share capital of Tata Consultancy Services (Africa) (Pty) Limited, a Company formed for providing IT services and investing in companies in South Africa. In January 24, 2008, the company sold their shareholding interest in their associate Conscripti (Pty) Ltd, for Rs. 3.83 crore. In March 2008, the company opened their North America Delivery Center called TCS Seven Hills Park.
During the year 2008-09, the company acquired Citigroup Inc.'s (Citi) 96.26% interest in TCS e-Serve Ltd (formerly known as Citigroup Global Services Limited), the India-based captive BPO, for a total consideration of USD 504.54 million. In addition, Citi signed an agreement with the company to provide process outsourcing services to Citi and their affiliates for an aggregate amount of USD 2.5 billion over a period of 9.5 years.
During the year, the company through their subsidiary, Tata Consultancy Services Asia Pacific Pte Ltd, subscribed to 100% share capital of Tata Consultancy Services (Thailand) Ltd and Tata Consultancy Services (Philippines) Inc. In June 2008, the company got $11.5 million transformational deal to design, install and integrate a tax administration system for the Uganda Revenue Authority (URA). In July 29, 2008, the company won the highest incremental improvement award and moved to the Industry Leader position in the Tata Business Excellence Model ('TBEM') at the JRD QV Awards ceremony.
In October 22, 2008, the Tata Infotech Deutschland GmbH has merged with Tata Consultancy Services Deutschland GmbH. The merged entity is a wholly owned subsidiary of the company. In December 11, 2008, the company subscribed to 50% share capital of National Power Exchange Ltd, established to promote trading of electrical power in India.
In June 5, 2009, the company, through their wholly owned subsidiary, Tata Consultancy Services Canada Inc, acquired 100% interest in ERI Holdings Corp. In January 1, 2010, the company, through their wholly owned subsidiary, TCS Iberoamerica S.A., subscribed to 100% interest of TCS Uruguay S.A. In January 1, 2010, they purchased 100% interest of MGDC S.C., Mexico, through their wholly owned subsidiaries, TCS Uruguay S.A. and TCS Argentina S.A.
In June 2010, the company signed a multi-year outsourcing contract with Telenor Norway. In June 30, 2010, Syscrom S.A., Chile merged with Tata Consultancy Services BPO Chile SA, a wholly owned subsidiary of TCS Inversiones Chile Limitada. Also, Custodia De documentos Interes Limitada, Chile merged with Tata Consultancy Services BPO Chile SA, a wholly owned subsidiary of TCS Inversiones Chil Limitada.
During the year 2010-11, the company set up five subsidiaries namely, MahaOnline Limited, Diligenta 2 Limited, MS CJV Investments Corporation, Retail FullServe Limited and CMC eBiz Inc. Also, Financial Network Services (H.K.) Limited was liquidated and de-registered during the year.
The Company entered into an agreement with the Government of Maharashtra pursuant to which a new subsidiary company, MahaOnline Ltd (MahaOnline) was setup on July 28, 2010 with equity participation from TCS and Government of Maharashtra. MahaOnline provides online internet-based citizen services to the residents in Maharashtra. This citizen service portal is integrated with DigiGov, a state-of-the-art e-Governance solution developed by TCS.
In August 31, 2010, Diligenta Limited, a majority owned subsidiary, acquired the entire share capital of Unisys Insurance Services Limited (UISL), which provides life and pensions services to its clients in the UK. On this acquisition UISL was renamed as Diligenta 2 Limited.
In October 4, 2010, Tata America International Corporation - a wholly owned subsidiary, acquired 100% share capital of MS CJV Investments Corporation. Consequently, the group holding in Tata Consultancy Services (China) Co., Ltd. has increased from 65.94% to 74.63%.
In October 8, 2010, the Company acquired 100% equity share capital of SUPERVALU Services India Pvt Ltd from SUPERVALU Inc., one of the largest grocery retailers in North America.
In December 2010, the company launched their new business process outsourcing (BPO) center in the Philippines. The company won a contract for establishing and managing the State Data Centre for the state of Uttar Pradesh. In February 2011, they signed five year contract with du, the integrated telecom service provider in the United Arab Emirates. Also, they launched iON - a fully integrated information technology solution for Small and Medium Business (SMB). iON provides on-demand business solutions using scalable cloud computing technology. It has been developed to deliver IT in the third generation service model to SMBs.
In August 2011, the company and the Singapore Management University (SMU) announced the establishment of the TCS-SMU iCity Lab to be located at SMU. The collaboration agreement signed states the two organizations are partnering to create a new research facility to develop industry standards and IT frameworks for the emerging intelligent city (iCity) model of urban development.
In December 2011, Call Genie Inc. announced that it has entered into a five year reseller agreement with Tata Consultancy Services (TCS) the IT services, consulting and business solutions firm, whereby TCS will resell the full suite of Call Genie and UpSnap Mobile products worldwide.
In February 2012, the company signed a multi-year, multi-million euro contract with Europcar. After a rigorous evaluation process, Europcar Information Services (EIS), the company's IT subsidiary, selected TCS to manage strategic IT Services development for its French operations. Also, the company and Mitsubishi Corporation announced a new joint venture, Nippon TCS Solution Center Ltd, for the Japanese market. Nippon TCS Solution Center will offer a full service suite of IT, BPO and Infrastructure services to Japanese corporations. TCS Japan will have 60% stake with Mitsubishi Corporation having a 40% stake. The joint venture will also establish a nearshore delivery center in Japan.
In 2012, the company won various awards like SAP Award of excellence for best run value realization for Project Spectrum, innovation award in France. Achievers 50 Most Engaged Workplaces in US, Partner Impact Awards from SAP, 2011 Eaton Premier Supplier Award, 'People Choice' award from the US National Science Foundation etc. The company also signed deal with South Africa Nedgroup Insurance. During the year the company launched passport seva Kendra in Delhi and also launched new rapid implementation offering for Oracle Fusion HCM. The company signed agreement with Scandinavian Airlines for F&A platform and entered into agreement with UK-based hospitality business chain. The company bags prestigious contract from UK Home Office Department during the year under review.
In 2013, the company was placed as a Leader in Oracle Application Management Services by Leading Research Firm. The company completed the acquisition of French IT Services firm ALTI. The company Launched Mobile Telematics Solution for Auto Insurers. During the year, the company was Designated a Leader and 2012 Star Performer in Capital Markets Application Outsourcing by Everest Group Research. The company was also selected by Nokia as a global IT Partner. The company expands UK operations in Liverpool. During the year the company was Placed as a Leader in Oracle Application Management Services by Gartner. The company also received Partner Excellence Award From Pegasystems, Inc. The company also won multiple Corporate Engagement Awards in Europe.
On 9 April 2013, TCS signed definitive agreements for the acquisition of 100 percent equity shares in Alti SA, an IT services company in France, for a value of 75 million Euro in an all-cash transaction.
In 2014, the company Launched New Digital Software & Solutions Group to Transform Digital Commerce and Customer Centricity.The company was selected by Diageo as a strategic partner during the year under review. The company introduced New Software Assurance Solution Co-Developed with Nissan during the year. During the year, the company was also Recognized as a Leader' in Retail Banking BPO by NelsonHall. The company received numerous awards during the year such as the companies TCS UK wins Gold Award for Innovation in Learning', op Workforce Award at the 2014 Diversity and Inclusion (DANDI) Awards Ceremony, Prestigious Association of Management Consulting Firms Award, wins Leading Vendor Award for Quality Assurance Services. During the year, the company was named Exclusive Certification Services Provider for CDMI Conformance Testing by SNIA. The company was also Positioned as a Leader in Capital Markets BPO by Everest Group.
On 21 April 2014, TCS announced the merger of TCS Japan, IT Frontier Corporation (ITF), Mitsubishi Corporation's (MC) 100 percent IT subsidiary, and Nippon TCS Solution Center (NTSC) to create a strong IT services unit in Japan.
On 16 October 2014, the Board of Directors of TCS and CMC approved merger of CMC with TCS. The swap ratio for the merger was fixed at 79 equity share of Re. 1 each of TCS for 100 equity shares of Rs. 10 each of CMC.
In 2015, the company signed a multi-year partnership deal with UK-based leading airline, Virgin Atlantic Airways (VAA), as Virgin Atlantic Airways selects TCS to support Digital Transformation programme. The companies Research Scholarship Programme expands to reach 200 more Computer Science PhD's in India. During the year, the company consolidates its long term partnership with the City of Amsterdam. During the year the company has been recognised by Ovum as a leader in the Ovum Decision Matrix. The company was also recognized as a Leader and Star Performer in Capital Markets Application Outsourcing Services by Everest Group. Europe's largest ever survey of business leaders ranks TCS 1 on both performance and customer satisfaction. During the year, the company also has won three different awards at the Brandon Hall Group Awards. Singapore Airlines and the company Introduce Mobile Solution for Cabin Crew. During the year under review, the company was recognized as the industry's fastest growing brand over last five years. The company also enters into strategic partnership with iRise. The company Launches Business Process Innovation, Simulation & Visualization as a Service (VaaS). The company Expands operations by opening a new Banking and Financial Services(BFS) center in Singapore. The company Wins 2015 SAP Pinnacle Award - Euroclear Finland launches Infinity, powered by TCS BaNCS for Market Infrastructure. The company was ranked as the 57th leading brand in the US by Brand Finance. During the year, the company Announces Premier Partnership with Adobe for Digital Marketing Solutions and Services. The company also announces Global Strategic Partnership with FICO during the year under review.
In 2017, TCS China was set up as a joint venture with the Chinese government and other partners.
Tata Consultancy Services Ltd
Directors Reports
To the Members,
The Directors present the Annual Report of Tata Consultancy Services Limited (the
Company or TCS) along with the audited financial statements for the financial year ended
March 31, 2020. The consolidated performance of the Company and its subsidiaries has been
referred to wherever required.
1. Financial results
(Rs. crore)
|
Unconsolidated |
Consolidated |
|
Financial Year |
Financial Year |
Financial Year |
Financial Year |
|
2019-20 |
2018-19 |
2019-20 |
2018-19 |
|
(FY 2020) |
(FY 2019) |
(FY 2020) |
(FY 2019) |
Revenue |
131,306 |
123,170 |
156,949 |
146,463 |
Other income |
8,082 |
7,627 |
4,592 |
4,311 |
Total income |
139,388 |
130,797 |
161,541 |
150,774 |
Expenses |
|
|
|
|
Operating expenditure |
93,953 |
88,206 |
114,840 |
106,957 |
Depreciation and amortisation expense |
2,701 |
1,716 |
3,529 |
2,056 |
Total expenses |
96,654 |
89,922 |
118,369 |
109,013 |
Profit before finance costs and tax |
42,734 |
40,875 |
43,172 |
41,761 |
Finance costs |
743 |
170 |
924 |
198 |
Profit before tax (PBT) |
41,991 |
40,705 |
42,248 |
41,563 |
Tax expense |
8,731 |
10,640 |
9,801 |
10,001 |
Profit for the year |
33,260 |
30,065 |
32,447 |
31,562 |
Attributable to: |
|
|
|
|
Shareholders of the Company |
33,260 |
30,065 |
32,340 |
31,472 |
Non-controlling interests |
NA |
NA |
107 |
90 |
Opening balance of retained earnings |
77,159 |
74,080 |
85,520 |
79,755 |
Closing balance of retained earnings |
71,532 |
77,159 |
78,810 |
85,520 |
2. COVID-19
In the last month of FY 2020, the COVID-19 pandemic developed rapidly into a global
crisis, forcing governments to enforce lock-downs of all economic activity. For the
Company, the focus immediately shifted to ensuring the health and well-being of all
employees, and on minimizing disruption to services for all our customers globally. From a
highly centralized model consisting of work spaces set in large delivery campuses capable
of accommodating thousands of employees, the switch to work from home for employees all
over extending all the elements of the Company's Open Agile Delivery model concept into a
next-generation Secure Borderless Workspaces (SBWS) model was carried out
seamlessly. As of March 31, 2020, work from home was enabled to close to 90 percent of the
employees to work remotely and securely. This response has reinforced customer confidence
in TCS and many of them have expressed their appreciation and gratitude for keeping their
businesses running under most challenging conditions. The SBWS model ensures high quality
and delivery certainty that the customers expect while addressing the issues around cyber
security, project management practices and systems. Going forward, this location
independent SBWS model could be a game changer due to its many advantages.
Although there are uncertainties due to the pandemic and reversal of the positive
momentum gained in the last quarter of FY2020, the strong balance sheet position,
best-in-class profitability and inherent resilience of the business model position the
Company well to navigate the challenges ahead and gain market share.
3. Dividend
For FY 2020, based on the Company's performance, the Directors have declared interim
dividends of Rs.27 per equity share and a special dividend of Rs.40 per equity share. The
Directors have also recommended a final dividend of Rs.6 per equity share, taking the
total dividend to Rs.73 per equity share.
The final dividend on equity shares, if approved by the Members, would involve a cash
outflow of Rs.2,251 crore. The total dividend on equity shares including dividend tax for
FY 2020 would aggregate Rs.31,895 crore, resulting in a dividend payout of 95.9 percent of
the unconsolidated profits of the Company.
For FY 2019, the Company paid a total dividend of Rs.30 per equity share. Further, the
Company bought back 76,190,476 equity shares at a price of Rs.2,100 per equity share for
an aggregate consideration of Rs.16,000 crore and also allotted 1,914,287,591 equity
shares as fully paid-up bonus shares in the ratio of 1:1. The total cash outflow for FY
2019 including dividend, dividend tax and buy-back consideration amounted to Rs.29,148
crore.
The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 ("SEBI Listing Regulations") is disclosed in the Corporate Governance
Report and is uploaded on the Company's website https://on.tcs.com/Dividend
4. Transfer to reserves
The closing balance of the retained earnings of the Company for FY 2020, after all
appropriation and adjustments was Rs.71,532 crore.
5. Company's performance
On a consolidated basis, the revenue for FY 2020 was Rs.156,949 crore, higher by 7.2
percent over the previous year's revenue of Rs.146,463 crore. The profit after tax (PAT)
attributable to shareholders and non-controlling interests for FY 2020 and FY 2019 was
Rs.32,447 crore and Rs.31,562 crore respectively. The PAT attributable to shareholders for
FY 2020 was Rs.32,340 crore registering a growth of 2.8 percent over the PAT of Rs.31,472
crore for FY 2019. On an unconsolidated basis, the revenue for FY 2020 was Rs.131,306
crore, higher by 6.6 percent over the previous year's revenue of Rs.123,170 crore in FY
2019. The PAT attributable to shareholders for FY 2020 was Rs.33,260 crore registering a
growth of 10.6 percent over the PAT of Rs.30,065 crore for FY 2019.
6. Human resource development
Attracting, enabling and retaining talent have been the cornerstone of the Human
Resource function and the results underscore the important role that human capital plays
in critical strategic activities such as growth.
A robust Talent Acquisition system enables the Company to balance unpredictable
business demands with a predictable resource supply through organic and inorganic growth.
The Company had a net addition of 24,179 employees globally, taking its total employee
count to 448,464. Fueled by inclusive hiring and heavy investment made to mentor and coach
women at all levels, women currently account for 36.2 percent of the workforce, making the
Company one of the largest employers of women in the world.
An evolved onboarding model helped the Company to effectively integrate associates
acquired through a strong localization focus. The diverse workforce represents 144
nationalities across 46 countries.
The reimagined approach to learning and development has helped the Company train over
335,000 employees on digital technologies and over 417,000 employees on Agile
methodologies.
The re-imagined focus on competency building of fresh recruits prior to joining through
unique digital Initial Learning Program approach has enabled faster release of freshers to
projects. Post-offer engagement activities have also witnessed increased focus.
Continual pursuit to connect with associates on a regular basis, communicate in an open
and transparent manner, progressive HR policies and distinctive HR Business Partner model,
guided by OneTCS culture, are yielding desired results. This is evident from the high
retention rates and improved engagement levels of the associates. Attrition in FY 2020 was
12.1 percent for IT Services. The Company's internal employee satisfaction survey PULSE
showed the highest employee satisfaction and engagement scores in the last 12 years.
7. Quality initiatives
The Company continues to sustain its commitment to the highest levels of quality,
superior service management, robust information security practices and mature business
continuity management. In FY 2020, the Company successfully completed the surveillance
audits for industry specific quality certifications viz., AS 9100 (Aerospace Industry),
ISO 13485 (Medical Devices) and TL 9000 (Telecom Industry). The Company has also
successfully completed the annual ISO surveillance audit. The Company is now amongst the
world's first organizations to be recommended for certification to ISO 22301:2019
standard. The Company also successfully completed SSAE 18 and ISAE 3402 - SOC 1 & SOC
2 annual assessment for Banking, Financial Services and Insurance, Cognitive Business
Operations, Life Sciences and Retail units covering 69 locations. The Company has been
appraised at Maturity Level 5 of the Capability Maturity Model Integration for Development
(CMMI V2.0 DEV).
The Company was recognized as a Benchmark Leader', a first of its kind
achievement in the Tata Group as part of the Tata Business Excellence Model assessment.
Three Industry Solutions Unit achieved the Industry Leader' status while one of the
units crossed over to the Benchmark Leader' band.
TCS' integrated Quality Management System (iQMSTM) continues to enable
outstanding value and experience to its customers. iQMSTM is continually
enhanced for emerging service offerings, new delivery methodologies, industry best
practices and latest technologies. iQMSTM has been updated with handbooks and
guidelines for Agile methodology.
The Company has committed to become Enterprise Agile by 2020. To achieve this vision,
the Company has created 417,000 Agile ready workforce and 1000+ futuristic Agile Delivery
Centres. TCS Location Independent AgileTM is a Company proprietary methodology
consisting of processes, management structure and the technology that enables enterprise
wide agile transformations without the location constraint. The Company has also driven
agility in TCS internal processes that enhance competitiveness. The Company has also been
identified as a leader in Agile adoption, offerings and services by several industry
analysts.
To reduce the delivery risks, the company has rolled out Guidelines for "Service
Delivery under SBWS" and has been monitoring the 25,000 projects across the globe on
a daily basis through the digitized dashboards. The customer-centricity, rigor in
operations and focus on delivery excellence have resulted in consistent improvements in
customer satisfaction levels in the periodic surveys conducted by the Company. This is
validated by top rankings in third-party surveys as well.
8. Subsidiary companies
The Company has 50 subsidiaries as on March 31, 2020. There are no associate or joint
venture companies within the meaning of Section 2(6) of the Companies Act, 2013
("Act"). There has been no material change in the nature of the business of the
subsidiaries.
On June 26, 2019, pursuant to exercise of put option by Mitsubishi Corporation, Tata
Consultancy Services Asia Pacific Pte. Ltd. acquired additional 15 percent stake in its
joint venture with Mitsubishi Corporation in Tata Consultancy Services Japan, Ltd.
TCS Financial Solutions Australia Holdings Pty Limited was deregistered with effect
from January 29, 2020. Its holdings in TCS Financial Solutions Australia Pty Limited along
with its other assets and liabilities were transferred to its holding company, TCS FNS Pty
Limited which is a wholly owned subsidiary of the Company. On March 9, 2020, Tata
Consultancy Services Netherlands BV, a direct subsidiary of the Company acquired TCS
Business Services GmbH in Dusseldorf, Germany to execute a certain special project.
Pursuant to the provisions of Section 129(3) of the Act, a statement containing the
salient features of financial statements of the Company's subsidiaries in Form No. AOC-1
is attached to the financial statements of the Company. Further, pursuant to the
provisions of Section 136 of the Act, the financial statements of the Company,
consolidated financial statements along with relevant documents and separate audited
financial statements in respect of subsidiaries, are available on the website of the
Company https://www.tcs.com/investor-relations.
9. Directors' responsibility statement
Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its
knowledge and ability, confirm that: i. in the preparation of the annual accounts, the
applicable accounting standards have been followed and there are no material departures;
ii. they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the financial year and of the profit
of the Company for that period;
iii. they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
iv. they have prepared the annual accounts on a going concern basis;
v. they have laid down internal financial controls to be followed by the Company and
such internal financial controls are adequate and operating effectively;
vi. they have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
Based on the framework of internal financial controls and compliance systems
established and maintained by the Company, the work performed by the internal, statutory
and secretarial auditors and external consultants, including the audit of internal
financial controls over financial reporting by the statutory auditors and the reviews
performed by management and the relevant board committees, including the audit committee,
the Board is of the opinion that the Company's internal financial controls were adequate
and effective during FY 2020.
10. Directors and key managerial personnel
O P Bhatt was re-appointed as an Independent Director at the twenty-fourth Annual
General Meeting (AGM) held on June 13, 2019 for a period of five years w.e.f. June 27,
2019 up to June 26, 2024. During the year, Aman Mehta and Dr. Ron Sommer ceased to be the
Directors with effect from June 26, 2019 upon completion of their term as Independent
Directors. The Board places on record its appreciation for their invaluable contribution
and guidance. Aarthi Subramanian retires by rotation and being eligible, offers herself
for re-appointment. A resolution seeking shareholders' approval for her re-appointment
forms part of the Notice. Pursuant to the provisions of Section 149 of the Act, the
independent directors have submitted declarations that each of them meet the criteria of
independence as provided in Section 149(6) of the Act along with Rules framed thereunder
and Regulation 16(1)(b) of the SEBI Listing Regulations. There has been no change in the
circumstances affecting their status as independent directors of the Company.
During the year under review, the non-executive directors of the Company had no
pecuniary relationship or transactions with the Company, other than sitting fees,
commission, if any and reimbursement of expenses incurred by them for the purpose of
attending meetings of the Board / Committee of the Company.
Pursuant to the provisions of Section 203 of the Act, the Key Managerial Personnel of
the Company as on March 31, 2020 are: Rajesh Gopinathan, Chief Executive Officer and
Managing Director, N Ganapathy Subramaniam, Chief Operating Officer and Executive
Director, Ramakrishnan V, Chief Financial Officer and Rajendra Moholkar, Company
Secretary. The term of Ramakrishnan V as the Chief Financial Officer was extended up to
April 30, 2021.
11. Number of meetings of the Board
Seven meetings of the Board were held during the year under review. For details of
meetings of the Board, please refer to the Corporate Governance Report, which is a part of
this report.
12. Board evaluation
The Board of Directors has carried out an annual evaluation of its own performance,
board committees and individual directors pursuant to the provisions of the Act and SEBI
Listing Regulations.
The performance of the Board was evaluated by the Board after seeking inputs from all
the directors on the basis of criteria such as the board composition and structure,
effectiveness of board processes, information and functioning, etc.
The performance of the committees was evaluated by the board after seeking inputs from
the committee members on the basis of criteria such as the composition of committees,
effectiveness of committee meetings, etc.
The above criteria are broadly based on the Guidance Note on Board Evaluation issued by
the Securities and Exchange Board of India on January 5, 2017.
In a separate meeting of independent directors, performance of non-independent
directors, the Board as a whole and the Chairman of the Company was evaluated, taking into
account the views of executive directors and non-executive directors.
The Board and the Nomination and Remuneration Committee reviewed the performance of
individual directors on the basis of criteria such as the contribution of the individual
director to the board and committee meetings like preparedness on the issues to be
discussed, meaningful and constructive contribution and inputs in meetings, etc. At the
board meeting that followed the meeting of the independent directors and meeting of
Nomination and Remuneration Committee, the performance of the Board, its Committees, and
individual directors was also discussed. Performance evaluation of Independent Directors
was done by the entire Board, excluding the independent director being evaluated.
13. Policy on directors' appointment and remuneration and other details
The Company's policy on appointment of directors is available on
https://on.tcs.com/ApptDirectors. The policy on remuneration and other matters provided in
Section 178(3) of the Act has been disclosed in the Corporate Governance Report, which is
a part of this report and is also available on https://on.tcs.com/remuneration-policy.
14. Internal financial control systems and their adequacy
The details in respect of internal financial control and their adequacy are included in
the Management Discussion and Analysis, which is a part of this report.
15. Audit committee
The details pertaining to the composition of the Audit Committee are included in the
Corporate Governance Report, which is a part of this report.
16. Auditors
At the twenty-second AGM held on June 16, 2017 the Members approved appointment of B S
R & Co. LLP, Chartered Accountants (Firm Registration No. 101248W/W-100022) as
Statutory Auditors of the Company to hold office for a period of five years from the
conclusion of that AGM till the conclusion of the twenty-seventh AGM, subject to
ratification of their appointment by Members at every AGM, if so required under the Act.
The requirement to place the matter relating to appointment of auditors for ratification
by Members at every AGM has been done away by the Companies (Amendment) Act, 2017 with
effect from May 7, 2018. Accordingly, no resolution is being proposed for ratification of
appointment of statutory auditors at the ensuing AGM and a note in respect of same has
been included in the Notice for this AGM.
17. Auditor's report and Secretarial audit report
The statutory auditor's report and the secretarial audit report do not contain any
qualifications, reservations, or adverse remarks or disclaimer. Secretarial audit report
is attached to this report.
18. Risk management
The Board of Directors of the Company has formed a Risk Management Committee to frame,
implement and monitor the risk management plan for the Company. The Committee is
responsible for monitoring and reviewing the risk management plan and ensuring its
effectiveness. The Audit Committee has additional oversight in the area of financial risks
and controls. The major risks identified by the businesses and functions are
systematically addressed through mitigating actions on a continuing basis. The development
and implementation of risk management policy has been covered in the Management Discussion
and Analysis, which forms part of this report.
19. Vigil Mechanism
The Company has a Whistle Blower Policy and has established the necessary vigil
mechanism for directors and employees in confirmation with Section 177(9) of the Act and
Regulation 22 of Listing Regulations, to report concerns about unethical behavior. The
details of the policy have been disclosed in the Corporate Governance Report, which is a
part of this report and is also available on https://on.tcs.com/WhistleBP.
20. Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments as per Section 186 of the Act by
the Company, have been disclosed in the financial statements.
21. Transactions with related parties
None of the transactions with related parties fall under the scope of Section 188(1) of
the Act. The information on transactions with related parties pursuant to Section
134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014 are given
in Annexure I in Form No. AOC-2 and the same forms part of this report.
22. Corporate Social Responsibility
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company as
adopted by the Board and the initiatives undertaken by the Company on CSR activities
during the year under review are set out in Annexure II of this report in the
format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.
For other details regarding the CSR Committee, please refer to the Corporate Governance
Report, which is a part of this report. The CSR policy is available on
https://on.tcs.com/Global-CSR-Policy.
23. Extract of annual return
As per the requirements of Section 92(3) of the Act and Rules framed thereunder, the
extract of the annual return for FY 2020 is given in Annexure III in the prescribed
Form No. MGT-9, which is a part of this report. The same is available on
https://on.tcs.com/annual-return-19-20.
24. Particulars of employees
The information required under Section 197 of the Act read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given below:
a. The ratio of the remuneration of each director to the median remuneration of the
employees of the Company and percentage increase in remuneration of each Director, Chief
Executive Officer, Chief Financial Officer and Company Secretary in the financial year:
Name |
Ratio to median remuneration |
% increase in remuneration in the financial year |
Non-executive directors |
|
|
N Chandrasekaran@ |
- |
- |
Aman Mehta* |
^ |
^ |
Dr Ron Sommer* |
^ |
^ |
O P Bhatt** |
32.09 |
(6.98)# |
Aarthi Subramanian@@ |
- |
- |
Dr Pradeep Kumar Khosla |
22.46 |
(6.67)# |
Hanne Sorensen |
22.46 |
^^ |
Keki Mistry |
22.46 |
^^ |
Don Callahan |
22.46 |
^^ |
Executive directors |
|
|
Rajesh Gopinathan |
214.65 |
(16.53)# |
N Ganapathy Subramaniam |
162.31 |
(12.87)# |
Chief Financial Officer |
|
|
Ramakrishnan V |
- |
(3.54)# |
Company Secretary |
|
|
Rajendra Moholkar |
- |
(0.12)# |
@ As a policy, N Chandrasekaran, Chairman, has abstained from receiving commission from
the Company and hence not stated.
@@ In line with the internal guidelines of the Company, no payment is made towards
commission to the Non-Executive Directors of the Company, who are in full time employment
with any other Tata company and hence not stated.
* Ceased to be Directors w.e.f. June 26, 2019 upon completion of their term as
Independent Directors.
** Re-appointed as a Independent Director for a second term w.e.f. June 27, 2019.
^ Since the remuneration is only for part of the year, the ratio of their remuneration
to median remuneration and percentage increase in remuneration is not comparable and
hence, not stated.
^^ Remuneration in FY 2020 is not comparable with remuneration received in FY 2019 and
hence, not stated.
# The remuneration for FY 2020 is lower than FY 2019 in view of the economic conditions
impacted by the COVID-19 pandemic. The Directors have decided to moderate the remuneration
for this year to express solidarity and conserve resources.
b. The percentage increase in the median remuneration of employees in the financial
year: 2 percent
c. The number of permanent employees on the rolls of Company: 448,464
d. Average percentile increase already made in the salaries of employees other than
the managerial personnel in the last financial year and its comparison with the percentile
increase in the managerial remuneration and justification thereof and point out if there
are any exceptional circumstances for increase in the managerial remuneration:
The average annual increase was 6 percent in India. However, during the course of the
year, the total increase is approximately 7.7 percent, after accounting for promotions and
other event based compensation revisions. Employees outside India received a wage increase
varying from 2 percent to 6 percent. The increase in remuneration is in line with the
market trends in the respective countries.
The managerial remuneration for the year decreased by 15 percent. The executive
remuneration for FY 2020 is lower than FY 2019 in view of the economic conditions impacted
by the COVID-19 pandemic. The Directors have decided to moderate the executive
remuneration for this year to express solidarity and conserve resources.
e. Afirmation that the remuneration is as per the remuneration policy of the
Company:
The Company afirms that the remuneration is as per the remuneration policy of the
Company. f. The statement containing names of top ten employees in terms of remuneration
drawn and the particulars of employees as required under Section 197(12) of the Act read
with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, is provided in a separate annexure forming part of this report.
Further, the report and the accounts are being sent to the Members excluding the aforesaid
annexure. In terms of Section 136 of the Act, the said annexure is open for inspection and
Any Member interested in obtaining a copy of the same may write to the Company Secretary.
25. Integrated Report
The Company being one of the top companies in the country in terms of market
capitalization, has voluntarily provided Integrated Report, which encompasses both
financial and non-financial information to enable the Members to take well informed
decisions and have a better understanding of the Company's long term perspective. The
Report also touches upon aspects such as organisation's strategy, governance framework,
performance and prospects of value creation based on the six forms of capital viz.
financial capital, manufactured capital, intellectual capital, human capital, social and
relationship capital and natural capital.
26. Disclosure requirements
As per SEBI Listing Regulations, the Corporate Governance Report with the Auditors'
Certificate thereon, and the integrated Management Discussion and Analysis including the
Business Responsibility Report are attached, which forms part of this report.
The Company has devised proper systems to ensure compliance with the provisions of all
applicable Secretarial Standards issued by the Institute of Company Secretaries of India
and that such systems are adequate and operating effectively.
27. Deposits from public
The Company has not accepted any deposits from public and as such, no amount on account
of principal or interest on deposits from public was outstanding as on the date of the
balance sheet.
28. Conservation of energy, technology absorption, foreign exchange earnings and outgo
Conservation of energy:
The eco-e_ciency journey at TCS revolves around infrastructure and operations. TCS
strategy to build green and operate optimally has led to year-on-year reduction in
specific energy footprint by 11.9 percent and specific carbon footprint by ~11.8 percent,
on per FTE basis.
In FY20, the Company added 2 MWp of rooftop solar across TCS campuses, taking the total
to 7.6 MWp. Total renewable energy units generated from rooftop solar projects and sourced
through power purchase agreements is cumulatively 59.5 million units in FY19-20 which is
10.9 percent of the total electricity consumption.
The shift to low carbon operations by switching over to energy efficient Light Emitting
Diode (LED) technology has resulted in saving of 11 million units of electricity across
TCS India operations.
The continued focus on Green IT and data center power management, has helped to reduce
the Power Utilization Efficiency (PUE) of the 23 data centers to 1.66 from 1.67 in the
last year. 22 of the 23 Data Centers have achieved the target PUE of 1.65. Data center /
server room consolidation, higher rack utilization, UPS rationalization have been the key
levers. The Company has also reduced the distributed IT power use by reducing the watts
per seat from 200 to 85 over the last 3 years.
Technology absorption, adaption and innovation:
Research & Development (R&D): Specific areas in which R&D was carried out
by the Company
TCS Research and Innovation is strongly aligned with the Company's vision of Growth and
Transformation underpinned by Enterprise-wide Agile and the AI-powered Machine First
Delivery Model.
TCS continues to expand its foundational research, in core computing areas and the
intersections with other sciences. New areas such as media and advertising, meta
materials, quantum computing and sensing have been added. TCS Research engages with its
ecosystem in many areas including AI and 5G. TCS Researchers presented 200+ papers in
premier conferences and produced books and book chapters through the year. The Company
released its second book of essays entitled Reimagining Research' describing several
of its key research projects.
Research and innovation teams worked with customers on several new ideas aligned with
their business. Examples include: value addition through AI for a retailer's supply chain;
robots to spot blast holes for a mining company; forklift damage detection using augmented
reality for a forklift rental business; collusion and spoofing prevention methods for
clearinghouses; foreign particle detection in steel manufacture; customer lifecycle value
optimization with a digital twin for a communication service provider; multiscale
modelling of digital skin for a pharma company.
The contribution to TCS' 3P vision of patents, products and platforms continues.
Ignio, a cognitive automation solution, was significantly enhanced this year. TCS
MasterCraft products have 110+ active customers. New features added this year
include TransformPlus for application translation and cloud migration, and DataPlus for
personal data protection in India. Jile 4.0, a new version of the flexible, agile
planning and delivery offering was launched. A healthy pipeline of assets moved through
the New Products and Services Development governance framework.
TCS Pace Port delivers speedy, collaborative innovation to customers by providing
access to COIN accelerators and academic research, in agile workspaces with innovation
showcases. TCS Pace Port New York, located in the Tata Innovation Center at Cornell
Tech campus, was launched. It focuses on retail, travel, transportation, hospitality and
life sciences industries. TCS Pace Port Tokyo completed a year in November 2019 and
continues to grow in terms of customer visits and downstream innovation led engagements.
The Company leveraged both the academic research ecosystem and the emerging technology
ecosystem for collaborative research as part of its Co-Innovation (TCS COINTM)
Program. It has 50+ projects in emerging technologies with global academic institutes. The
emerging tech COIN program is embedding itself in customer projects.
The Company continued to foster the culture of innovation, with one crowdsourced
innovation event a week. The TCS Innovista competition attracted 6,500+ entries across
business units.
TCS R&I remained closely connected to customers through events in different
geographies. The TCS Innovation Forum was held in Tokyo, New York City, Sao Paulo and
London attracted 700+ customers, partners and technology experts. Innovation Days for a
number of customers were held through the year.
TCS won several awards related to intellectual property creation. TCS Advanced Drug
Development (ADD), TCS Optumera and the SMU-TCS iCity Lab's SHINESeniors project have won
prestigious awards.
As of March 31, 2020, the Company has applied for 5,216 patents cumulatively. The
Company has been granted 1,341 patents.
Future Plan of Action
TCS Research and Innovation will enable scaling of the Patents, Products and Platforms
strategy across the organization and align with the Company's focus on growth and
transformation. Engagement with all business units with its Co-Innovation Network, and
with society at large will continue.
Expenditure on R&D
TCS innovation Labs are located in India and other parts of the world. These R&D
centers, as certified by Department of Scientific & Industrial Research (DSIR)
function from Pune, Chennai, Bengaluru, Delhi- NCR, Hyderabad, Kolkata and Mumbai.
Expenditure incurred in the R&D centers and innovation centers of TCS during FY
2020 and FY 2019 are given below:
(Rs. crore)
Expenditure on R&D and innovation |
Unconsolidated |
Consolidated |
|
FY 2020 |
FY 2019 |
FY 2020 |
FY 2019 |
a. Capital |
2 |
2 |
2 |
2 |
b. Recurring |
300 |
303 |
304 |
306 |
c. Total R&D expenditure (a+b) |
302 |
305 |
306 |
308 |
d. Innovation center expenditure |
1,458 |
1,285 |
1,561 |
1,352 |
e. Total R&D and innovation expenditure (c+d) |
1,760 |
1,590 |
1,867 |
1,660 |
f. R&D and innovation expenditure as a percentage of total turnover |
1.3% |
1.3% |
1.2% |
1.1% |
Foreign exchange earnings and outgo
Export revenue constituted 93.4 percent of the total unconsolidated revenue in FY 2020
(93.3 percent in FY 2019).
(Rs. crore)
Foreign exchange earnings and outgo |
FY 2020 |
FY 2019 |
a. Foreign exchange earnings |
128,501 |
119,499 |
b. CIF Value of imports |
569 |
447 |
c. Expenditure in foreign currency |
51,748 |
49,336 |
29. Acknowledgments
The Directors thank the Company's employees, customers, vendors, investors and academic
partners for their continuous support.
The Directors also thank the Government of India, Governments of various states in
India, Governments of various countries and concerned Government departments and agencies
for their co-operation.
The Directors regret the loss of life due to COVID-19 pandemic and are deeply grateful
and have immense respect for every person who risked their life and safety to fight this
pandemic.
The Directors appreciate and value the contribution made by every member of the TCS
family.
|
On behalf of the Board of Directors |
|
N Chandrasekaran |
Mumbai, April 16, 2020 |
Chairman |