India's largest IT services, business solutions and outsourcing company, Tata Consultancy Services (TCS) has launched its second Global Delivery Center (GDC) near Hyderabad even as it announced reorganization of its global operations for better efficiency.

The TCS Synergy Park in Gachibowli near Hyderabad was inaugurated by Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy, Monday, Feb. 11.

Built over an area of 50 acres with a capacity to seat 8,000, the campus is the largest TCS facility in Hyderabad.

According to TCS CEO and Managing Director S. Ramadorai, the campus will be built in two phases and, while the first phase became operational on Monday, the construction of the second phase will begin in April.

It (the campus) is a significant milestone for our operations in Hyderabad and underlines the importance of the city as a key center in our global network delivery model, Ramadorai said.

With a strong education ecosystem, plentiful talent and good infrastructure, Hyderabad has emerged as a leading IT destination and the city will continue to play a significant role in our growth plans, he added.

Synergy Park is an approved special economic zone and will serve global TCS customers in industry segments like telecommunications, media and entertainment, government, healthcare and life sciences, hi-tech, manufacturing, retail as well as banking and financial services with a focus on technology areas like enterprise solutions, assurance services and infrastructure services as well as IT services.

The campus is being built on an approximate budget of Rs.750 crore, a TCS official said.

TCS, which has been operational in Hyderabad since 1979 and has helped the city establish itself as a leading center for the IT industry in India, has an employee base of over 6,000 people in the city currently.

Meanwhile, wary of the slowdown in the US economy, TCS is beginning to concentrate on its core competencies and has announced a reorganization of its global operations for better efficiency.

We are aware of the problems and we are cautious about the implications of slowdown in the US market. We are adopting a wait and watch approach. But presently, we see no impact of the slowdown, and we will continue to bid for new projects and not reduce the deal sizes, Ramadorai said.

We are not saying that there will not be any implications from the US slowdown. But we are optimistic about the long-term sustainability of the company, he added.

According to TCS, starting April 1, its global operations will be reorganized into five groups aimed at driving operational agility, addressing new growth opportunities, and enhancing its customer focus.

The five groups are [1] the industry solutions group, which will look after post-sales service; [2] the major markets group, focusing on the UK, US & Europe; [3] the new growth markets group, focusing on India, Asia-Pacific and emerging markets; [4] the strategic initiative group, for small and medium businesses and BPO firms; and [5] the organization infrastructure group for driving company excellence.

TCS also plans to reorganize its 100,000-strong employee base into more manageable and accountable clusters of 500-5,000 people that would make the organization more accessible to its clients.

The Banking, Financial Services and Insurance sector accounts for 41 percent of revenues of TCS and about 25,000 employees are focused on it.

As we scale up over 100,000 employees, TCS needs a structure that allows us to build a nimble organization to capture new growth opportunities, Ramadorai said. This will create a framework that is scalable for growth across markets and provide focus on strategic initiatives like asset leveraged solutions, platform-based BPO as well other new initiatives.

The new framework would also help the company in providing customers a clear and better understanding of TCS's project delivery, he added.

According to COO N. Chandrasekaran, the modular structure will simplify our interface with customers and drive agility in all areas of operations. The reorganization would not result in job cuts, he said.

TCS, which recently announced that it would increase the salary of its employees by close to 15 percent this year in spite of the reported cost cutting measures, including a cut in variable pay, by the company, faced harsh media glare which reported that 500 employees were shown the pink slip.

However, speaking to the media, Ramadorai said the figure was not even worth talking about considering the attrition rate or recruitment that had happened in the same period. The performance management is an ongoing process. These 500 people left the company on performance grounds over a period of 10 months. But the media interpreted the move as if it had happened overnight or in a week, Ramadorai said, noting that the company during the present fiscal year, the company has selected 22,000 people through campus recruitment.

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