TCS
TATA CONSULTANCY SERVICES a.k.a.
TCS – another brand TATA has established over a period of time is one of the 1st
movers in the IT industry – to be more specific, services industry.
We saw many good things happened
over a period of time, lot of employability, including an IPO, share split,
bonuses etc. which provided opportunity for many people to mint money. Some
even constructed houses with the profits earned on TCS shares. Needless to
mention the improvement in standard of living out of those 3 lakh employees.
To confess at the beginning of the
write-up, I am neither a TCS employee nor an IT industry expert. But what I can
do is read the numbers and think on a qualitative approach to improve the
numbers. My credentials stand way back identified Satyam fiasco a year before
it actually happened.
Now, what is the daunting situation
for TCS is dwindling numbers. Much of TCS’s revenue is earned from the U.S.
which is gradually making a shift in selecting a service provider. The industry
which asks TCS to provide services is a product based platform. So, the
products like, banking solutions, mobile solutions – (TMT, manufacturing) formed
a major part of TCS’s revenue.
When there was a huge discussion
around the U.S. visa policy, no jobs off shore kind of mantra with which Obama
made a point in his election campaign which he succeeded so far, all projects
are gradually moved to the US based software service providers like Accenture
and CTS or captive setups. They are hiring big time.
What hit, as an Indian company, TCS
take is, we don’t get projects but what we can do is, join Accenture / CTS /
captive units who are, currently doing well. Third party service providers like
– Indian IT companies, KPOs who have higher exposure to the US market are worse
hit or will be worse hit soon.
Coming back to the management side
of it, there is a concept called “deadwood”. Technically, deadwood is having
some really good experienced people who can neither be promoted nor thrown out
( pink slips ) as they are good at what they do (Can’t be more diplomatic).
Usually, globally renowned employers have rotation policy in place which
constantly channelizes their employees to explore new avenues and interests to
keep the balance between learning curve as well as innovation.
Contrary, I met a lot of people who
are really good at what they do and wanted to be associated technically so
forgoing promotions just to fulfil their desire towards technical side.
In every organization, there are
designated managers and people who take the role of a manager. It is inclusive
that in a service industry, going up the ladder means narrowing technical
skillset and increasing people management – billing. What do these so called
managers miss while going up the ladder is growing. They, at a point of time,
have either completely forgotten technical skills or outdated w.r.t. the technological
advancement. They are in a comfort zone. This will put them on a back seat
while mingling with team in technical discussions. End result is, belittled by
subordinates. It is like, “I became Indian cricket captain and so, I won’t bat or
bowl or field …. just captain the team”. This enforces idiotic managers to use
their authority and trouble the sub-ordinates and pressurise to leave the
company or surrender to whatever they say, while good leaders will get back to
basics and improve on technical aspects and decision making with the experience
they gained.
Insecurity is for those who fear
due to some incapability. It can be technical. If my job demands me to be good
at coding, I have to be good at coding. Period. If top management’s job demands
right person to be hired and retained, they should do it.
Where do TCS stand? I heard TCS is
firing middle level management. So, who are they? Are they deadwood? Are they
the so called managers? Or leaders? Did TCS achieved the current situation from
the date it got listed without this middle management? Average working years
with TCS per employee is high. I heard many people who are in the middle
management started their career in TCS.
On what basis they are eliminating
the group of 25,000 employees? Is it on their qualification or performance or
both? My point is, if he / she is a certified hacker, will he be given priority
or the one who spent 9 years in the Company, handling multiple projects and
gained expertise is. Remember – Satyam fiasco is done by a Chartered
Accountant.
Why did TCS, a company which is
called as a proxy of government job in India, firing people? Is it because of
industry pressure? Is it too big to fail? If in that case, why did management
take such wrong measures of hiring people? Why didn’t they concentrate on
developing technical capabilities within the employees? Is it management’s
wrong decision to allow creating that deadwood? This is harsh. Management’s
concentration on growing top line and bottom line (for naïve finance guys, it
is revenue and profit) and missing on operational front is their mistake. Look
at other best performing companies. They take necessary balancing measures.
We all understand, as business
analysts, that bad apple would eat away profitability of good apples. So, it is
a common practice to shut down bad apples phase wise. In an organization which
has got 3,00,000 employees, 25,000 at middle management is like 8.33% ? Which
almost translates to 250cr INR a month considering 1, 00,000 per month as
salary.
TCS can make good profits out of
it. But the reputation damage? No one can value it.
There are multiple scenarios – when
Microsoft acquired Nokia, they lay off employees on either sides. It is a part
of operational efficiency. What is it that situation which made TCS lay off
8.5% employees? In a services industry, this is the worse. It is like breaking
8.5% of house as it is occupying too much space for lawn.
What surprised me is the unity of
all TCS employees joining hands to support each other. When Satyam fiasco
happened, the same people didn’t leave the organization. They stayed back to
support the firm to come back to its normal course. They even took nominal hike
of 5% average. Yet, they are those who made the difference. Companies should
realise the fact that the people are most important.
Narayana Murthy made a difference
to Infosys when it is at stagnant situation; he shuffled, restructured but
didn’t fire people. He knows the importance.
It is important to take corrective
measures at some point or the other to fulfil dreams. It is the time for TCS.
They want to revive their business strategy. Management sitting on top is the
safest as they have the power to throw it in others court. From definitions of
TCS – Tea Coffee Snacks or Tamil / Telugu Consultancy Services or any other
sought, bring it back to where it all started, with you, the people. Make a
difference in taking this an opportunity to improve on areas you need to,
rather than just sitting on a call with onsite manager or looking into billing.
In our industry, it is said that
“if one cannot be replaced, he cannot be promoted”. One should learn from top
and train below guys to be promoted and promote. That’s a win - win situation.
Talk to yourself. It’s time.