TCS - The MCA 21 ProjectSubmitted to: Dr. Pankaj Madan (Director coer –sm)

In 1968, Mr. F. C. Kohli ,an MIT trained electrical engineer and an executive in Tata Power Engineering , was tasked with setting up a software and service business-TCS.

He thought that an engineering approach to software would be more effective than a computer science based one.

This approach to software services eventually became a foundation for the Indian software services industry.

Company Overview

Much of the early work consisted of developing cross compilers for mainframe systems.

Then it started with development of applications in India.

In 1979,TCS made the decision to leverage its technical knowledge to get into products.

Tasks performed by TCS overtime

In the new millennium, TCS continued to expand its execution capability worldwide focusing on a three pillar strategy based on :

BPO Infrastructure

Transformation In 2002, they launched a centre in Uruguay.

In 2004, they established a centre in Hungary.

In 2007, they launched a joint venture in China with local firms and Microsoft.

Development of TCS in 2000

Prior to 2003, information technology spending and e-governance programs within India were typically addressed by individuals . This led to significant variation in technologies deployed ,unnecessary variation in standards and poor access to services and information for companies and individuals.

To address this, the national government instituted a National e-Governance Plan (NeGP)which included 26 projects that cut across multiple levels of government and multiple departments within each level.The first project was the MCA 21 project.

MCA 21 Project

This will help in decreasing the set up time of a new company.

They want to reduce the heavy paper costs because offices were always swimming in files or paper.

MCA staff suffered both high stress and lack of motivation and government believed that MCA 21 Project would be a boon for all stakeholders.

Bidding proposal specified 90% of the historical must be accessible via the internet.

Objectives of MCA 21 Project

SWOT ANALYSIS

Highly educated, skilled, young, capable and dynamic resources.

The employees exhibited a very high level of commitment.

International demand for services is sky rocketing.

STRENGTHS

Lack of leadership skills Lack of effective and execution framework Lack of maintainance of existing documents. The system as a whole led to waste,

inefficiency and potential corruption. Telecommunication problem faced by the

TCS in the 1970’s. TCS was not able to find and inculcate well

trained people which was the primary restraint in its development.

WEAKNESSES

After liberalization :- import and export restrictions were curtailed Special tax incentives were created to encourage growth in the software sector.

This, combined with the worldwide increase in information technology spending as well as the Internet bubble could lead to rapid growth of the entire industry.

In the new millennium, three strategies BPO , infrastructure services and transformation led to a high growth rate of the company.

OPPORTUNITIES

Over time TCS came to realize that the customers needed both -- Direction and Execution capabilitiesFor accomplishing this task it was not only necessary to understand the technological capabilities, but also help guide customers to where they needed to go.

THREATS

PEST ANALYSIS

India’s political domestic policies had affected TCS throughout its history.

The socialist governments in India during the 1970s had made business difficult.

Tariff to import hardware for development were high. As employees had to travel to customer locations,

obtaining foreign currency from RBI was a very tiring job.

In 1986, government introduced a new software policy and this allowed firms exporting software services to import hardware without duties.

POLITICAL ISSUES

As MCA 21 project was not only complex but also risky , government was showing lack of thought or judgment to fund the project.

TCS had to pay tax on projects for Indian customers.

Margin is 40% less than their non – Indian counterparts.

ECONOMIC ISSUES

Revenue was distributed globally with the united sates, Europe, India and others of the world according for 59%, 22%, 13% and 6% of 2006 revenue respectively.

By Y2K project they generated 10-15% of the company’s revenue.

State Bank of India deal size is exceeded $100 million.

European & UK companies were first to pursue larger projects with TCS.

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If a potential investor wished to view filed documents then the investor had to visit the office personally.

For example , prior to loaning money investors needed to search whether a company had prior charge registrations , a statutory filing that noted what collateral security was pledged in the company for other loans.

By the mid- 1980s there were almost, 1000 people working on its initiative.

SOCIALOGICAL ASPECTS

They are developing cross complier for Mainframe system.

TCS develop the radio system. In 1974, they hired all 40 students who had

completed their graduation studies in computer science department.

For transferring the bulk data they used reels of tape.

TECHNOLOGICAL ASPECTS

Company also developed its first electronic management system.

In 2004 TCS completed its initial public offering and listed in both National Stock exchange in Chicago and Bombay stock exchange in India.

In 2005 TCS acquired Pearl in the UK, a life insurance and pension technology administration.

By the help of TCS NSE first year executed 100,000 trade per day and in 2006, NSE executed between three and four million transaction per day.

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The National Stock Exchange The State Bank of India SEGA

Three projects handled by TCS

In India there had been over 20 stock exchanges.these were lacking in technology.

To combat this problem the government decided to set up a National market-The National Stock Exchange(NSE).

In 1993,the Ministry of FINANCE charged the Industrial Development Bank of India (IDBI) with the task of setting up the new exchange.

IDBI immediately asked TCS for its technological support.

NATIONAL STOCK EXCHANGE

TCS was given 10 months time to get the first part of the market and was expected to complete the capital market in 5 more months.

The initial team consisted of six people from NSE and two from TCS.

After two months the people from TCS were sent back.

After the completion of the project ,Dr. R.H. Patil , Managing Director and CEO of NSE credited the success of NSE to the healthy relationship between NSE and TCS.

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First project occurred in 1990 with SEGAWork of SEGA Responsible for settlement and custody of

Swiss security and execution of task. Main emphasis on new technologies

development that would replace existing system.

Searching technological partners to hand over the keys for designing, developing & testing the new system.

Experience of TCS with SEGA

TCS took up the control & completed its contract in more than 3 years and hand over 350 persons.

In 1993, SEGA worked within the country. In 1994, SEGA enabled cross border transactions.

Thus, SEGA become more dependent on TCS company and produced world wide security market. In the end, it had good relationship with introduction of new product and services.

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The directors discussed two projects that were undertaken between SBI and TCS:-

A cautionary tale A commercial and learning success

In 1999,TCS found out about a core banking opportunity with a large Indian bank.

The bank was looking for a partner who would replace the existing software and hardware across its hundreds of branches .

The total deal size exceeded $100 million.

• TCS built its solution around the core banking product of Financial Network Services (FNS),an Australian Software Company.

• After over a year of significant work, TCS was recommended as the solution provider.

• The final solution was one of the largest core banking solution in the world.

• After successfully deploying its solution at SBI , TCS had become a total business supplier.

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The government believe that MCA21 would be a boon for all stake holders.

This project was about the redesigning existing offices and also encourage online interaction.

The bidding proposal specifies that by year three 90% of historical forms must be accessible through internet.

The MCA21 would lower the cost and reduce potential corruption and improve the quality.

After MCA21-

After whole discussion TCS company should select the MCA 21 Project and they can do this project within time because they have lot of experience in other sides and they have best technological support.

The project if completed successfully, would mark another step in TCS progress from a provider of low-cost technical resources to their goal of becoming an end-to-end technology enabled service provider.

Conclusion