Wednesday, February 13

TCS to divide into 5 units to boost productivity

The units will address new growth opportunities, provide sharper accountability and groom new leadership, its COO and executive director N Chandrasekaran told reporters. “The new structure has been well planned and provides tremendous amount of customer ownership and accountability. The structure is aligned to the long term strategy and allows sales team to drive new business in a dedicated fashion,’’ he said. The units have been organised as industry solution unit, major markets group, new growth market group, strategic initiative group and organisation infrastructure group.

All these units will be run by empowered group heads with access to all resources of TCS and with growth and profit responsibility. “TCS has 105,000 plus employees and given the market momentum we need manageable and nimble organisation,’’ TCS CEO S Ramadorai said. The industry solution group will have multiple industry verticals of manageable size. Every industry vertical will have a head who will be accountable to the overall unit head. The second unit—strategic initiative group—will have three subunits including the TCS Financial Solution and two new units dedicated to small and medium business solutions and BPO solutions. These three strategic growth businesses will operate as independent units.

“The SMB is a very important opportunity for us,’’ Ramadorai said. The BPO solutions will integrate all BPO verticals under a single unit. The fourth unit—new growth market—will have three sub-units for India, Asia-Pacific and emerging markets. The fifth unit of organisation infrastructure will support process excellence, technology excellence shared services and resource management in four different sub-units. The new structure becomes operational from April 1 and every unit is likely to have a strength varying between 2,500-5,000 people, Ramadorai said.

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