IT behemoth, Tata Consultancy Services, is set to offer consulting services on tech strategy for certain clients soon. In an interview with businessline, Krishnan Ramanujam, President of Business & Technology Services, TCS said, “We are trying to swim upstream to get into what McKinsey and BCG are doing. For our largest clients, we are trying to explore new opportunities for business, outside IT services. Tech is ubiquitous in all aspects of business strategy, and we are trying to leverage our capabilities to consult in these areas.”
This comes at a time when consulting and advisory firms such as Deloitte and Accenture are starting to offer digital services to compete with the business of large IT giants such as TCS, Wipro, Infosys, etc. TCS’ pivot to explore non-IT services for their largest clients is part of its April 2022 reorganization of business groups.
As part of the reorganization, TCS has arranged its businesses into distinct categories. The first vertical serves the IT major’s early-stage customers. The second one — the enterprise growth group — headed by Ramanujam, looks at furthering existing IT business and becoming key technology thought leaders for their existing clients. The last group, “TCS of Tomorrow,” is set to explore further collaborations with their clients outside of the IT business, as their clients’ IT budgets are already maxed out.
‘The secret sauce’
“As we have established longstanding relationships with those largest customers, the kind of value of relationships is of the value of multiple hundreds of millions of dollars. We know a lot about them, and technology is the secret sauce behind every area of operation in every company. For any enterprise, technology capability is the leading factor. Are you doing M&A ? If so, how well you can integrate your two tech estates is going to assess how successful your M&A is going to be. Tech is in the heart of sustainability and technology helps with differentiating strategy. Even with strategy there are substructures we can deal with,” Ramanujam explained.
Ramanujam added that specific announcements around these aspects will be coming up in subsequent quarters. Right now, three quarters into the reorganisation, the company is still exploring specifics for the future collaborations outside IT that they can do with their largest clients.