Vendor Analysis
published on Aug 10, 2017
Report Overview:
This NelsonHall vendor assessment analyzes TCS' offerings and capabilities in SAP HANA and S/4HANA services.
Who is this Report for:
NelsonHall’s Digital Transformation Services Vendor Assessment for TCS is a comprehensive assessment of TCS’ SAP HANA and S/4HANA services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for digital transformation services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the digital transformation sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of TCS’ SAP HANA and S/4HANA service offerings, capabilities and market and financial strength, including:
- Analysis of the company’s offerings and key service components
- Revenue estimates
- Identification of the company’s strategy, emphasis and new developments
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Tata Consultancy Services Ltd. (TCS) was formed in 1968 and is headquartered in Mumbai, India. Originally a captive provider to other Tata Group entities, today it is an IT, consulting, services and BPS organization that forms part of The Tata Group, India’s largest private business conglomerate. TCS has grown rapidly throughout its 48-year history and is now the largest India based IT service provider.
TCS is positioning its offerings along a theme of “Reimagining the Enterprise”, focusing on customer-centric digital transformation offerings delivered through distributed agile services, cloud-first strategy, and deploying automation.
TCS has a global SAP client base of ~400 clients and total annual revenues of $1.2bn. Its ~16.7k SAP resources are distributed globally with key presences in all major geographic regions including North America, Europe, South America and Asia-Pacific.
In 2013, it acquired Alti, a France based IT services company with 1.2k employees for €75m; this enabled it to expand its SAP capabilities, targeting clients in France, Belgium, and Switzerland.
As clients are trying to gauge the impact of HANA, and the value and risk of migrating, TCS is positioning its SAP HANA and S/4HANA offerings across the lifecycle of SAP adoption, including simplification and advisory, EPR on HANA, S/4HANA migration, and S/4HANA enterprise management.
TCS' headcount at the end of June 2016 was 362,079, up 11.4% y/y. TCS has ~16.7k SAP skilled employees. Of these, ~1.5k are skilled on SAP HANA and S/4HANA.
TCS' delivery network includes multiple types of delivery centers delivering SAP HANA and S/4HANA services. These include six specialist centers and ~21 SAP delivery centers across North and South America, Europe and Asia.
While newer technology solutions including HANA, S/4HANA, Fiori and Hybris make up ~22% of TCS' current SAP footprint, TCS is investing heavily in building its capabilities and positioning itself to grow. It is up-skilling its workforce, targeting to have trained all ~16.7k SAP resources by the end of 2017 in these newer technologies, and building out extensions and tools to increase adoption. These investments are primarily targeted at the industries with which it is currently seeing adoption (manufacturing, logistics, ports, retail) so as it seeks to expand its footprint and grow other industry verticals it will need to continue to expand these offerings (such as the utilities and media offerings on which it is currently working).