Tata Consultancy Services (B): Building an Offshore IT Software Outsourcing Hub in China By Wee Beng Geok & Ivy Buche

Publisher Ref No:	ABCC-2008-004B	Pub/Rev Date:	2008
Industry:	Computer Software & Services	Case Length:	9 pages
Teaching Note Ref:	ABCC-2008-004B(TN)	Teaching Note:	4 pages
Organisation:	Tata Consultancy Services	Period Covered:	2007 - 2008
Country:	China	Level:	Undergraduate/ Postgraduate

Publisher:

The Asian Business Case Centre, Nanyang Technological University

Abstract

In 2006, TCS articulated its 'near market' strategy and announced a new service delivery model - Global Network Delivery Model (GNDMTM), underlining the global scale of its business operations. According to CEO and Managing Director, S. Ramadorai, TCS' goal for its 55 delivery centres around the world was to collaborate on projects for the delivery of IT services, working on a 'follow-the-sun model', giving customers the same experience of certainty and consistency, whether the service was delivered in Chennai, China or Chile.

When fully implemented, GNDMTM implied the setting up of large scale operations in China, and medium-sized operations in South America (Brazil) and Eastern Europe (Hungary). In 2002, TCS established operations in China, following multinational clients who were setting up large scale operations there. By February 2007, TCS China employed nearly 800 IT consultants and served more than 25 clients in the Asia Pacific region. TCS' goal was to build the China operations into the company's second global delivery centre after India. To give the initiative a kick start, it had to increase its workforce strength in China to 6,000 by 2010/11. In April 2008, given the tight supply of IT talent in China, TCS faced major challenges in talent acquisition and development. What should TCS do to meet its manpower target in China for 2010/11?

Instructors may wish to follow this case with "Tata Consultancy Services of India (A): Human Capital Management as Competitive Strategy". Case (A) discusses whether TCS' India-based talent development model could continue to be a source of competitive advantage as it expanded its global footprint.

Issues: Service delivery framework, Near market strategy, Talent acquisition and development in China

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