Tata Consultancy Services i.e TCS has become the first company in India to have a market cap of $100 billion. TCS’ journey so far has been very exciting. Former CEO and MD of TCS S. Ramadurai wrote a book ‘The TCS Story and Beyond’. Let’s Have a look at the interesting things written in the book about TCS.
TCS was established in the year 1960. Then a verbal offer was made to JRD Tata that the Tata group should move towards data processing. Then different companies around the world started work on it. JRD immediately considered and passed the resolution. The group’s holding company Tata Sons has also announced an investment of Rs 50 lakh. Now the biggest challenge was to implement the plan. By 1968 the name was finalized – Tata Consultancy Services. Fakir Chand Kohli aka Father of IT Industry (F.C. Kohli) was made in charge of it. Coming out of MIT, Kohli was still employed at Tata Electric (now Tata Motors). This big responsibility of setting up TCS at the ground level was entrusted to Kohli. The special thing is that Kohli has been described in the book as a ‘liberal dictator’.
Ramadurai then completed his studies at the University of California and briefly worked as the US National Cash Registrar. Ramadurai had left his job of $12,000 from there and was assigned the responsibility of a programmer in TCS at a salary of one thousand rupees a month. Ramadurai has written in the book that he had decided to leave America and come to India due to the bad health conditions of his future wife Mahalakshmi. Along with this, a young Tamil Brahmin, under Ramadurai Kohli’s guidance, embarked on the path of bringing the computer revolution to the country. TCS got its initial work from other Tata group companies. When orders fell short, the company moved to Iran, where the Tata group began its new project for power stations. After this, an opportunity came, when the way of working at the company changed completely. The Foreign Exchange Regulation Act (FERA) was enacted in 1973 by the Indira Gandhi government. It set limits on the import of foreign equipment into the country. Also, no multinational company in the country will be able to hold more than a 40 percent stake in the joint venture.
After this decision, IBM had to retreat a bit in India and TCS got an opportunity to fly at a higher speed. This was big news for TCS because till now Indian programmers were working on IBM mainframes. Now the Tatas began to build their own software rapidly. It was signed with Burroughs, who was at the forefront of micro-programming and software architecture at the time. This is where the Great Indian Outsourcing Story of India started. TCS sent its men to the US to learn how to transfer IBM’s customers to TCS in India. By the 90s, TCS had become a well-known name in the world. The company had become a specialist in financial services. In September 1996, Ramadurai was made the chief executive officer of the company.
In 2002, TCS became the country’s first $1 billion software company. In 2010, TCS became a 2500 crore company. After that in the year 2013, it crossed the 50,000 crore mark and in 2014 it crossed the 7500 crore mark.
TCS Official Website https://www.tcs.com/
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