The Hindu Business Line : TCS rejigs global operations

Mumbai, Feb.12 With a view to improving productivity and enhancing customer focus, Tata Consultancy Services has re-organized its global operations into five different units.

Three of them are industry solutions group, which will be responsible for existing clients; major markets group, which will focus on the UK, US and Europe; and emerging markets unit, which will focus on new growth geographies.

The other two groups are the strategic initiatives group and the organizational infrastructure group.

All of these units will be run by directors who will be responsible for the profit or loss generated by the unit, said Mr. N Chandrasekaran, Chief Operating Officer, TCS, said at a news conference today.

However, he did not quantify the exact impact the move will have on profitability or productivity improvement.

A company spokesperson said that previously the company was streamlined in terms of geography and industry practice. The new management structure will be effective from April 1.

The restructuring exercise within TCS had begun in May last year, with the spinning of TCS BaNCS as a dedicated product company within the TCS fold.

“We have been working at implementing the new structure in the organization in the last nine months,” said Mr Chandrasekaran.

The new structure will provide customers with a single window view of TCS and also provide leadership opportunities for employees at all levels in the organization, added Mr Chandrasekaran.

TCS is comfortable with its existing projections of maintaining utilisation rates at 77-79 per cent. “If necessary, the new structure will give us the flexibility to attain utilisation rates above 80 per cent,” he said.

Currently TCS employs about 1.08 lakh employees; for the quarter ended December 2007 its utilisation rate stood at 77.75

The TCS scrip was down by 4.25 per cent to close at Rs 864.8 on the BSE today.

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