In the month of February 2008, as S. Mahalingam (Maha), CFO of Tata Consultancy Services considered the tactical challenges confronting TCS, challenges faced exclusively by the elite section of IT services businesses: IBM Global Services, Computer Sciences Corporation, Accenture, KPMG, and others. The key issue was how to maintain a breathtaking yearly growth rate of 35 to 40 percent without forfeiting 25 to 30 percent gross profits. Maha: "By the year 2010 we want to turn into a $10 billion-a-year firm producing 25 percent gross profits".
The business's strategy and positioning, combined with a good variety of macro variables and superb performance breaking its manner, had put it front and centre in the leadership competition for world-wide IT services. Since the early 1990s, TCS had grown faster, made more money, created a better brand and reputation, and invested more heavily (as a percentage of revenues) in its future than its Indian or international competitors. The question on the mind of Maha was whether TCS had the appropriate strategy to continue as it aimed to become the first Indian technology firm to join the $10B sales club to outmaneuver its competitors.
Tata Consultancy Services Globalization of IT Services case study solution
PUBLICATION DATE: April 24, 2009 PRODUCT #: IB79-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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