Tata Consultancy Services (TCS)

Tata Consultancy Services is an Indian company founded in 1968 that specializes in providing IT services and consulting activities. Headquartered in Mumbai, the company has 147 offices in 46 countries.

History

2025: Lay off 12,000 employees

In late July 2025, India's largest IT service provider, Tata Consultancy Services (TCS), announced its intention to reduce headcount by about 2%. This measure is aimed at optimizing operations in conditions of lack of money.

As The Economic Times notes, TCS is facing demand-related challenges. Macroeconomic uncertainty has a negative impact on business. In addition, there is a rapid transformation of the IT sector due to the introduction of artificial intelligence. AI fundamentally changes the way IT services are delivered, enabling IT to automate routine operations and reduce the burden on employees. As a result, companies are able to do the previous amount of work with fewer people in the state, resulting in layoffs. In addition, due to the ubiquity of AI, TCS is forced to redistribute its labor resources in order to maintain profit margins and improve competitiveness.

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Фото: Reuters

The staff of TCS as of mid-2025 exceeds 613 thousand people. Thus, as part of the reorganization, approximately 12,200 jobs will be abolished. Layoffs will primarily affect middle and senior professionals.

TCS'decision to cut 2% of its workforce could lead to disruption in the short term and higher personnel turnover in the long term, while also reflecting weak market demand, Jefferies analysts said.

The $283 billion Indian IT sector has faced a number of difficulties. Market participants are cutting IT spending due to falling sales, persistent inflation and continued uncertainty about US trade policy. In such a situation, TCS is forced to optimize the structure and costs.^[1]

2021: Recruitment of 40,000 employees

In mid-July 2021, Tata Consultancy Services (TCS) announced the recruitment of more than 40,000 staff from Indian campuses. India's largest IT service provider will substantially increase headcount in the 2021-22 financial year.

The company's chief operating officer Ganapathy Subramaniam noted that there is no shortage of talent in the country. Meanwhile, the number of TCS employees has exceeded the 500,000 mark. The net increase in the TCS staff for 2021 was 20,409.

Indian IT giant Tata Consultancy Services recruits 40,000 employees

Our staff is still very diverse and includes people of 155 nationalities. Women make up 36.2% of the workforce, company executives noted.

They also said that in the first quarter of 2021, new and old employees underwent more than 10 million hours of training. Overall, more than 478,000 employees were trained in Agile techniques and more than 407,000 employees took courses on a range of new technologies.

On university campuses in India, we have hired 40,000 people in 2020. We will continue this path and intend to hire over 40,000 people in India in 2021, "says Milind Lakkad, head of human resources departments.

Hiring staff from campuses takes a long time, so it takes more than three months before new personnel begin full-fledged work on projects, he said.

The executive and managing director of the company, Rajesh Gopinathan, is often asked if the TCS organization is too large for adequate management. He replied that the company's carefully designed structure allows it to operate effectively while maintaining flexibility and control over the situation. In particular, the TCS leadership has broken down the organization into small autonomous entities with support from above, which helps solve complex problems.^[2]

2020: Purchase of Deutsche Bank subsidiary - Postbank Systems

On November 9, 2020, India's largest IT company, Tata Consultancy Services (TCS), announced the purchase of Deutsche Bank's subsidiary, Postbank Systems. The financial component of the transaction, which is planned to be closed by the end of the year, has not been disclosed. First, the deal must be approved by regulators. Read more here.

2019: Revenue - $29.9 billion

At the end of financial 2019, which ended for the company on March 31, revenue amounted to $29.9 billion, showing an annual growth of 9.6%. Net profit amounted to $4.5 billion with an increase of 12.2%.

2017: Rajesh Gopinathan - New CEO

On January 12, 2017, it became known about the change of CEO of Tata Consultancy Services (TCS). The largest Indian IT company and Asia's largest software exporter was led by Rajesh Gopinathan. Read more here.

2016: $960 million fine awarded for stealing secrets of American Epic Systems

In mid-April 2016, Tata Consultancy Services was found guilty of stealing trade secrets belonging to the American medical software manufacturer Epic Systems. The largest Indian IT outsourcer has been fined almost $1 billion, but he intends to appeal the court verdict.

Epic Systems filed a lawsuit against Tata Consultancy Services in 2014, accusing the Indian company of "cheeky" downloading technical documentation from the plaintiff's software as part of a project to install this software on Kaiser Permanente hospitals' computers. Uploaded confidential information and other trade secrets that fell into Tata Consultancy Services were subsequently used in the work of Med Mantra's own service, competing with Epic Systems solutions.

Tata Consultancy Services was found guilty of stealing trade secrets belonging to US medical software maker Epic Systems

On April 15, 2016, a jury in Wisconsin (USA) found Tata Consultancy Services guilty in an Epic Systems lawsuit and ordered to recover $940 million from the Indian company, of which $240 million should go as compensation for the damage caused by Epic Systems. Tata Consultancy Services announced its intention to appeal.

The jury's decision on the measure of responsibility and punishment came as a surprise to the company, which believes they are not supported by evidence presented during the trial, Tata Consultancy Services said in a statement. - The company did not allow any abuse or benefit from documents downloaded from the Epic Systems user portal.

Tata Consultancy Services also noted that the presiding judge questioned the methodology for calculating Epic Systems losses, so the amount of the fine is likely to be reduced.^[3]

2011: Agreement with the Russian Universal KUBE and implementation in Binbank

In 2011, Tata Consultancy Services entered into a partnership agreement with the Russian integrator Universal KUBE. The first client of the partners was Binbank, which has already implemented an automated system owned by Tata.

As it became known to RBC daily, Tata Consultancy Services entered the Russian market with a platform developed specifically for Russian banks. Tata management found it more effective to enter into a partnership agreement with the Russian company Universal KUBE, and not open an office in Russia. According to a market source, the development of a full-fledged solution for the Russian market took two years, and the license cost the first Tata client in Russia - Binbank - $10 million.

According to the representative of the Russian side, General Director of Universal KUBE Sergei Vikhrov, "within the framework of the agreement, Universal KUBE will be responsible for marketing in the local market, have the right to introduce technologies and generally act as an intermediary for negotiations between Tata and Russian banks. As a profit, the Russian side will receive commissions from transactions from the purchase of software licenses. "

"In the near future, we expect increased demand for TCS products from financial institutions of Russia, Ukraine and the Republic of Belarus, - says Ganapati Subramaniam, President of TCS Financial Solutions, - Tata has chosen Universal KUBE as a partner in Russia, which has unique expertise in the implementation and maintenance of various banking platforms and at the same time excellent knowledge of our products, which will represent our interests in the CIS countries. "

banking systems segment is one of the rare cases of domestic manufacturers holding firm against Western competitors. The Central Bank helps them in this with its unique reporting system, which has no analogues in the world, which also changes regularly. Thanks to this feature, Western ABS are being introduced in Russia with difficulty, even in foreign banks. Although bankers really want them right from the first days of the formation of the Russian banking system, "says Vladimir Nekrasov, CEO of Contour Components

Western systems were often designed decades ago, have an outdated architecture, technical solutions that are not ideal compared to Russian developments. But they have something that is sorely lacking in Russian business as a whole, and in banking in particular, business processes calculated to the smallest detail, carefully thought out and materialized in the methodology software.

"In recent years, an epic battle for customers between Russian and foreign vendors has been unfolding in this market," sums up Vladimir Nekrasov.

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