Vendor Analysis
published on Sep 16, 2013
Report Overview:
This NelsonHall vendor assessment analyzes TCS's FAO offerings and capabilities in the TTL sector. TCS is one of a number of F&A Outsourcing services companies analyzed as part of NelsonHall's FAO industry analysis focused on the TTL sector.
Tata Consultancy Services Ltd. (TCS) was formed in 1968 and is headquartered in Mumbai, India. Originally a captive provider to The Tata Group, India's largest private business conglomerate, TCS is a publically listed IT services, consulting and BPO organization employing ~276,000 FTEs and generating revenues for the period ended March 31, 2013 of $11.6bn.
Who is this Report for:
NelsonHall's Vendor Assessment for TCS is a comprehensive assessment of TCS's FAO offerings and capabilities in the Travel, Transport & Logistics (TTL) sector. The report is designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of F&A outsourcing services and identifying vendor suitability for F&A RFPs
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector
Scope of this Report:
The profile provides a comprehensive and objective analysis of TCS's FAO offerings, capabilities, and market and financial strength with regard to the TTL sector, including:
- Identification of the company's strategy, emphases and new developments
- Analysis of the company's strengths, weaknesses and outlook
- Revenue estimates
- 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 offerings and key service components
- Analysis of the company's delivery organization including the location of delivery centers.
Key Findings & Highlights:
TCS' association with the TTL sector and specifically the airline sector dates back over 21 years. In 1992, Tata acquired an initial 24.9% share in Swissair's captive revenue accounting center, creating a joint venture, Airline Financial Support Services Pvt. Ltd. (AFS).
In May 2003 TCS acquired the remaining shares in AFS, following the collapse of Swissair, with AFS becoming TCS' center of excellence for the airline and hospitality industry. Since 2003 AFS has provided passenger and cargo revenue accounting services, including interline billing and frequent flyer program administration. AFS customers have included Tyrolean Airlines, Sabena, Austrian Airlines, Lauda Air, Malmoe Aviation and Loyalty Gate (which managed the TravelClub frequent flyer program for SWISS and was later sold to ICLP). AFS is now fully integrated within TCS and has ceased to exist as a separate entity.
At present 25% of TCS' TTL client base outsource F&A processes to TCS.