Tata Consultancy Services (A): Human Capital Management as Competitive Strategy By Wee Beng Geok & Ivy Buche

Publisher Ref No:	ABCC-2008-004A	Pub/Rev Date:	2008
Industry:	Computer Software & Services	Case Length:	16 pages
Teaching Note Ref:	ABCC-2008-004A(TN)	Teaching Note:	4 pages
Organisation:	Tata Consultancy Services	Period Covered:	2007 - 2008
Country:	India	Level:	Undergraduate/ Postgraduate

Publisher:

The Asian Business Case Centre, Nanyang Technological University

Abstract

Tata Consultancy Services Ltd (TCS), India's largest IT service provider reached a major milestone when manpower strength crossed the 100,000 employees mark in October 2007. Based on a business model heavily reliant on low-wage software engineering talent, TCS tapped with great success, India's large pool of engineering graduates, mainly from top universities, for its human capital needs. These software project consultants formed the backbone of the company's service delivery system and the lynchpin of TCS' growth as a global IT company.

By the end of March 2008, TCS' global employee strength was more than 111,000. Ninety percent of its IT consultants were Indian nationals, as were majority of the TCS consultants in the USA. However, as TCS followed its multinational clients and set up operations in developing countries, it was likely that their governments would require TCS to tap on local engineering talent as much as possible. The challenge for TCS was whether its essentially India-based talent development and management model could continue to be a major source of competitive advantage in these developing countries.

Instructors may wish to follow this case with "Tata Consultancy Services of India (B): Building an Offshore IT Software Outsourcing Hub in China". Case (B) highlights TCS' challenges in talent acquisition in China.

Issues: Building competitive advantage through people, Human capital management, TCS' training model

About the Authors