TCS: Biggest & Best, Getting Bigger

 | June 05,2010 04:26 pm IST

India's largest tech company is also its best IT employer. It is not the pay alone.

What is the key to the ever-complicated HR management puzzle? Well, asking the brains at TCS could help. When an above 70,000 employee-strong organization emerges as the best employer, one cannot help but wonder what it really takes to keep such a huge workforce added both organically and inorganically-really satisfied in these trying times.

 

The company hogs the limelight when it is managing to maintain the lowest attrition rate in the industry. The figure is around 10% when the industry average hovers around 20%.

 

Currently, 7.5% of TCS' workforce belongs to other nationalities and are spread across the globe. True to the characteristics of a global organization, TCS has added a local flavor to all its existing HR policies. S. Padmanabhan, Executive VP, Global HR, further asserts that, "The DNA of the company is to create an easy work environment and this has been built over years of effort."

 

Not considered the best paymaster in the industry, TCS' compensation structure is also based on a simple philosophy - it is not sufficient to give a lot, but give it to the right people. Managing the people, revenues and the customers constitutes an ideal organization. TCS seems to be the perfect depiction, at least in the Indian IT scenario. What is there in TCS' HR practices that make it the best and biggest? Can it keep its head above water, in its efforts to grow even bigger?

 

Background

Sticking on to the tested and tried procedures does not qualify the existence of a company in the present environment, which is never the same on two consecutive days. It takes timely alterations in its HR practices to keep it abreast with the others in the race. When it comes to TCS, not just being in par is key, but leaping forward at a staggering pace ahead of its competitors holds the key.

 

The company should effectively harness its human capital by making the necessary modifications in its HR practices from time to time. The HR practices should be in alignment with the overall strategy and processes for the company to keep going in the rat and mouse game.


TCS has been thriving for this many years in a big way, and it becomes evident that HRM is in line with the strategy. In fact, TCS was the 'live case study' that capped off a six-day 'strategic leadership-training program' organized by the All-India Management Association and conducted by faculty from the Harvard Business School at the Tata Management Training Centre, Pune.

 

The strategists speak volumes about the company. Appreciating the fact that, TCS was a role model, how about the torrential times ahead? The company is getting bigger and the competition more heated up. Hats off to TCS HR strategies till date. It is not the past but the future that counts. The company is assured of a bright future if it frames the HR strategies that is really becoming, as it has done in the past. Keeping the tempo going, but modifications and interventions at the right time in the proper way will keep its position intact. Easier said than done. The big H - HOW? Thus strategic HRM comes to the forefront submerging HRM. The following discussion sheds light into the techniques of HRM adopted by TCS that enabled smooth functioning and growth in the global scenario.

 

Over View of HR in TCS 

 

Diversity in Workplace

According to Anjali Prayag, "For Indian companies, managing a diverse workforce is no longer a choice but an imperative." TCS is an equal-opportunity employer and TCSers come from many nationalities and speak many languages. TCS has the culture of celebrating everything under the sun, singing carols at Christmas and doing the dandiya dance at Navrathri with equal enthusiasm.

 

Tata Consultancy Services (TCS) will recruit 4,000 foreign nationals in the forthcoming fiscal, including 800 people in the US and 1,000 in Latin America and the rest in China and Eastern Europe, according to Mr. S. Padmanabhan, Executive Vice-President of Global HR. The company intends to build a workforce with over 7.5% representation of foreign nationals. It is noteworthy that more than 25% of the employees are females.

 

The company has adopted the diversified workforce approach in order to create a comfortable environment for clients and employees who work along with it on specific projects. The HR practioners who make a large hue and cry about bringing out the best using a diverse workforce can really quote TCS as an example.


One of the chief reasons for the diversity drive was the 9/11 disaster. The move was initiated as a risk mitigating mechanism wherein, the company does not have to take the risk of losing its entire workforce due to a single catastrophe.

 

The far sightedness of the company in this regard is further revealed by the strategy they plan to recruit the diverse workforce. In order to do this, the company is looking to implement the campus recruitment framework that it has in India in foreign countries. The company has established relationships with 180 campuses in India where it held recruitments and made 8,000 offers in the first quarter of 2006-07. Abroad, it is still in the process of building relationships with universities and colleges such as Nanyang Technological University, Singapore, and some universities in China.

 

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Comments


praveen on 06/25/10 at 12:45 pm

hi friends, i am praveen and doing M.tech final sem. I have not placed in TCS, but somehow i have selected as project trainee in TCS and doing project in TCS. Now my project leader wants to observe me..

can anybody tell what is the policy to observe me ?

Thanks and regards
praveen


amit.mhatre30 on 07/23/10 at 07:20 pm

Good stuff.


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With best regards,

Selvaraj P


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