When you think of India’s top IT companies, one name stands out, not just for its size but for its leadership in the IT sector. Tata Consultancy Services Ltd holds the top position in the Nifty IT Index, a spot that few can beat. For investors, TCS stands for hope and great returns.
Today, we will explore the great TCS history along with insights into Tata Consultancy Services products, TCS share price, etc.
The TCS History: A Journey of Innovation and Global Leadership
The story of Tata Consultancy Services History (TCS) is an inspiration for millions, not just because of its success but because of its values. Founded by the Tata Group under the leadership of the visionary Ratan Tata, TCS has always been making a difference.
Let’s take a look at how this iconic company has grown, step by step, into the global powerhouse it is today.
1968 – The Beginning of TCS History
It all started in 1968 when TCS was founded. However, it was different from what Tata Consultancy Services is today. India was just beginning to dream big in the world of technology. A visionary named Fakir Chand Kohli, lovingly known as the Father of Indian IT, saw a future where India would lead in IT.
He gathered a small, eager team of talented IT professionals, many of them fresh from their studies in the US, and began laying the foundation for TCS Ltd.
They were driven by a simple idea: create demand for computer services in a country where technology was still in its infancy.
1971 – First Leap Abroad
Just three years later, in 1971, TCS took its first step beyond India. The company won a project from an electric company in Iran. This was just the beginning of TCS’s global ambitions.
Power companies in Iran needed help with inventory and stock control systems, and TCS was the one to step up.
TCS also formed a partnership with Burroughs Computer to sell and service its systems in India and globally.
In 1973, TCS was handed a project to convert hospital accounting software for a client in the US. But there was an advantage: they didn’t even have the right computer to do the job!
Not one to back down from a challenge, the Tata Consultancy Services’ team created their own in-house tool to complete the project and sent it overseas.
1974 – A Milestone Project in the UK
The very next year, Tata Consultancy Services delivered its first full software development lifecycle project in the UK.
1979 – Going Global with New York Office
In 1979, the company opened their very first sales office in New York, headed by S Ramadorai. They bagged one of their first major clients, and the world started noticing this small Indian company that was making waves across borders.
1981 – A Focus on Research and Development
By 1981, TCS had a big reason to celebrate. With the vision of JRD Tata, India’s first software research centre, the Tata Research Development and Design Centre (TRDDC), was born in Pune. It was here that TCS began to build some of its most innovative solutions that would soon transform industries.
1983 – Strengthening Ties with Swiss Bank
Another leap in the TCS history was a major step in building international relationships. They partnered with the Swiss National Bank for an offshore project in Delhi. This expanded TCS’s global portfolio.
In 1982, TCS ventured into software development, creating a data dictionary for Burroughs, which would eventually lead to the creation of a major accounting software package. This was just one of many firsts to come.
1987 – Embracing Mainframe Technology
By 1987, TCS had set up the IBM Centre of Excellence in Chennai, opening the door to numerous mainframe opportunities.
But the story didn’t stop there.
In 1989, TCS signed a landmark deal with Swiss Securities Clearing Corporation worth US$ 10 million. This was a big deal, both in terms of the money and the complexity of the work. It firmly established Tata Consultancy Services Limited as a global player.
1992 – A National Vision: Core Banking for NSE
In 1992, Tata Consultancy Services products developed the core banking platform for India’s newly established National Stock Exchange (NSE).
In 1996, the company saw its first major leadership change when Faqir Chand Kohli retired, and S Ramadorai took over as CEO. That same year, TCS built the core platform for the National Securities Depository Limited (NSDL), India’s first electronic depository.
By 1997, the world was preparing for the Y2K crisis, and TCS saw an opportunity. The company introduced the concept of a “software factory” to automate the conversion of millions of lines of code. With over 700 million lines of code converted, TCS became a leader in the global Y2K remediation effort.
The year 2000 saw TCS take on the Y2K rectification project. By now, TCS was a force to reckon with in the global IT industry.
Then came 2002. TCS secured a $100 million deal with GE Medical Systems, the largest deal by an Indian IT company at the time.
It was a turning point, proving that Indian companies could handle some of the biggest and most complex IT projects in the world.
In 2004, TCS issued its IPO, listing on Indian stock exchanges and becoming the third-most valuable company in India. This was the turning point that further propelled TCS into the spotlight.
The company launched an IPO worth US$ 1 billion—the largest IPO by a private sector company in India at that time.
The stock market took notice, and TCS became one of the most respected names in the global tech industry.
2005 – A Groundbreaking Deal with UK’s Pearl Group
TCS struck another major deal in 2005, winning a $847 million contract to provide back-office transaction processing services for UK’s Pearl Group (now the Phoenix Group).
With its growing influence, TCS took innovation to the next level in 2006 by launching the Co-Innovation Network (COIN). This platform connected over 2,500 startups and more than 50 academic partners, creating new technologies to solve customer problems in groundbreaking ways.
In 2007, TCS signed its first US$1 billion deal, a huge milestone in its journey. The world was now fully aware of the power of Indian IT.
By 2009, TCS had extended its expertise to the UK life insurance market, providing cloud-based services that would soon make them the #1 provider in the industry.
As the years went by, TCS kept raising the bar. In 2011, they launched iON, a cloud-based service aimed at small and medium businesses, giving them access to powerful technology that was previously out of reach.
2014 was a proud year for TCS, as it became the first Indian company to sponsor the New York Marathon.
In 2016, Tata Consultancy Services Products set a goal to achieve net-zero emissions by 2030, making sustainability a core part of its mission.
In 2017, TCS announced the largest buyback in the history of Indian capital markets—worth INR 1.6 billion. The company had not only earned trust but had also proven its dedication to long-term growth.
By 2020, TCS had become the largest agile workforce in the world, with over 545,000 associates ready to tackle any challenge. With revenue soaring to US$ 25.7 billion and an all-time high revenue addition of US$ 3.5 billion by 2022, TCS gained spotlight.
It is now an institution, a global leader in the IT industry, admired for its innovation, commitment, and unmatched talent.
In 2024, Jaguar TCS Racing won the ABB FIA Formula Teams’ World Championship for the first time, marking another feather in TCS’s cap.
As of the latest advancement, Tata Consultancy Services (TCS) has partnered with Landis+Gyr. It is a Switzerland-based leader in energy management solutions. This collaboration aims to empower utilities around the world to reduce their carbon emissions and meet sustainability targets.
TCS plans to reduce greenhouse gas emissions by 70% by 2025.
However, as part of the deal, the TCS share price on Dec 17th, 2024, dipped by 1.3% to ₹4,416, but the company remains a top performer with a 17% return in 2024.
About Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) is a leading global IT services, consulting, and business solutions provider. You would be amazed to know that TCS has been in existence for over 56 years. As the flagship company of the Tata Group, TCS is renowned for its expertise. This spreads to delivering consulting-led, cognitive-powered services across business, technology, and engineering.
Tata Consultancy Services Ltd operates in 55 countries and employs over 601,000 skilled professionals. As of March 31, 2024, TCS revenue was $29 billion.
TCS Services
| Artificial Intelligence, Cloud, Cognitive, Business Operations Consulting, Cybersecurity, Data and Analytics, Enterprise Solutions, IoT and Digital Engineering, Network Solutions and Services, TCS Interactive, Sustainability Services |
TCS Industries
| Banking, Capital Markets, Consumer Goods and Distribution, Communications, Media, and Information Services, Education, Energy, Resources, and Utilities, Healthcare, High Tech, Insurance, Life Sciences, Manufacturing, Public Services, Retail, Travel and Logistics |
TCS Products and Platforms
| TCS ADD™, TCS BANCS™, TCS BFSI Platforms, TCS CHROMA™, TCS Customer Intelligence & Insights™, TCS ERP on Cloud, ignio™, TCS iON™, TCS HOBS™, TCS Intelligent Urban Exchange™, TCS OmniStore™, TCS Optumera™, TCS Tap™, Quartz™ – The Smart Ledgers™, TCS TwinX™, TCS MasterCraft™, Jile™ |
TCS Revenue Q2 FY25: A Strong Quarter of Growth and Momentum
Tata Consultancy Services (TCS) just shared its performance for the second quarter of FY25. And the numbers are solid!
TCS has been busy solving tech problems across the globe. This effort paid off, with total revenue reaching ₹64,259 crore—a 7.6% growth compared to last year. If you look at it in US dollars, revenue touched $7.67 billion, up 6.4%.
Profits That Impress
TCS ran its operations smoothly, maintaining an Operating Margin of 24.1%—basically, that’s the profit after covering core expenses. The company’s Net Margin (final profit) stood at 18.5%, showing its strong ability to turn revenue into gains.
What’s even better?
The cash flow from operations was 100.2% of their net profit.
- TCS added 5 new clients who bring in over $100 million each year.
- Another 8 clients joined the $10M+ club.
- 35 more clients are now contributing at least $1 million annually.
As of Q2, their headcount reached 6,12,724 employees—that’s like the population of a small city!
It’s clear—TCS history is incredible!
Innovation Through the TCS Way
Innovation has been at the heart of TCS since its inception in 1968. From its early groundbreaking offshore services to the launch of cloud-based offerings for small and medium-sized enterprises (SMEs) in 2011, the company continues to innovate.
Tata Consultancy Services Ltd has implemented a regenerative business model to reduce its environmental impact. TCS’s sustainability initiatives extend beyond environmental responsibility to include efforts in education, skill development, and entrepreneurship, positively affecting millions of people around the world.
Environment & Sustainability
TCS is committed to reducing its environmental impact. Their green initiatives include energy management, water conservation, waste reduction, and protecting biodiversity.
- 67.3% of TCS office space in India follows Green Building standards.
- 74% of energy used is renewable.
- 10.2 megawatts of solar power generation capacity across TCS campuses.
- Reduced energy consumption by 20%, with a 19x increase in renewable energy use.
Other Sustainability Initiatives:
- Water Conservation: Targeting a 3% yearly reduction in fresh water use across campuses.
- Waste Reduction: Maximizing recycling of materials like e-waste, paper, and plastics. 95% of food waste is treated in bio-digesters.
- Biodiversity: Supporting over 600 species of plants and 200 species of animals across 18 campuses in India.
Conclusion
The story of TCS is not just about technology—it’s about vision, leadership, and constantly pushing the envelope. From a small startup in 1968 to a global IT giant, TCS has shown that with the right strategy, innovation, and perseverance, anything is possible. The journey continues, and there’s no telling how high TCS will go next.
FAQs: History of Tata Consultancy Services Ltd
The current CEO of TCS is Krithi Krithivasan.
TCS provides IT services, consulting, and business solutions. It operates in over 55 nations.
Tata Consultancy Services Limited in 1968 as part of the Tata Group. From small beginnings, it has now become a global IT leader with operations in 55+ countries.
Fakir Chand Kohli, known as the “Father of Indian IT,” was the first CEO of TCS. He laid the foundation for its success.
TCS is owned by the Tata Group, one of India’s biggest and most respected business houses.
TCS helps businesses with advanced tech solutions, develops software and manages IT services globally.
TCS is ranked as the top company in India’s Nifty IT Index, leading the IT sector by market cap.
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