Rank 12: TCS: Buyout and Expansion

VoicenData Bureau
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TCS registered a turnover of Rs 640 crore from its telecom business,

exhibiting a growth of 7.2 percent as compared to Rs 597 crore in the fiscal

2000-01. This forms around 15 percent of its total turnover which was to the

tune of Rs 4,187 crore.


In the fiscal 2001-02, the company took over the government-owned networking

leader CMC Ltd. Tata Sons, of which TCS is a division, now holds 51 percent

stake in CMC. The year also saw TCS expanding its horizons, both geographically

and technologically. It made its presence in Asia-Pacific and consolidated in

traditional markets like the US and Europe. TCS also entered into a couple of

technology alliances–with Tivenet to market value-added solutions in

m-commerce to wireless carriers and ISPs, and with Portal Software is to jointly

address the telecommunications needs of the Asia-Pacific market.

TCS also operates an offshore development center at Hyderabad for Ericsson,

which will outsource TCS’ expertise in the telecom domain for high-end

solutions in areas like digital-switching, wireless networks and mobile







S Ramdorai

Address : Air India Building,

11th Floor Nariman Point, Mumbai 400021
Tel : 022-2024827
Fax : 022-2040711
Web site : 

Strength  : Renowned player globally
Weakness : Little focus on the domestic market
Opportunity : Outsourcing from telcos
Threat  : Tech start-ups gaining foothold in software services

 In January 2002, TCS made Chennai its telecom services hub. This fiscal, it

plans to invest Rs 5 crore on the OSS lab at Tidel Park there and hire around

600 consultants for telecom services. On the services front, about 60 percent of

the revenue came from service providers such as Qwest and British Telecom. The

rest came from equipment vendors such as Ericsson.