Tata Consultancy Services (TCS) is India’s third largest IT services company and one of the leading players in the global market. The company has been delivering strong performance and growth in the past few years, despite the challenges posed by the COVID-19 pandemic and the changing industry dynamics. In this article, we will take a closer look at some of the key aspects of TCS’s business, such as its AI initiatives, its fresher salary structure, and its outlook for the future.
Gen AI: TCS’s vision for artificial intelligence
TCS has been investing heavily in artificial intelligence (AI) and related technologies, such as machine learning, natural language processing, computer vision, and robotics. The company has developed its own AI platform called TCS Ignio, which is designed to automate and optimize IT operations and business processes. TCS Ignio has been deployed by over 400 customers across various industries and geographies, generating over $1 billion in revenue for TCS.
TCS has also launched a new initiative called Gen AI, which aims to democratize AI and make it accessible to everyone. Gen AI is based on the concept of “AI for humans”, which means that AI should be human-centric, ethical, explainable, and trustworthy. Gen AI also focuses on creating AI solutions that are tailored to specific domains and contexts, rather than generic ones. TCS has identified five key domains for Gen AI: health and wellness, education and learning, sustainability and environment, social good and inclusion, and culture and heritage.
TCS is working with various partners, such as academic institutions, research organizations, startups, NGOs, and government agencies, to co-create and co-innovate AI solutions for these domains. Some of the examples of Gen AI projects are:
- An AI-powered chatbot that provides personalized guidance to students on their career choices and learning paths
- An AI-based system that detects diabetic retinopathy from eye images and recommends appropriate treatment
- An AI-enabled platform that monitors air quality and provides actionable insights to reduce pollution
- An AI-driven solution that helps preserve and promote India’s cultural heritage through digital storytelling
- An AI-assisted tool that helps farmers optimize their crop yield and reduce water consumption
TCS believes that Gen AI will not only create value for its customers and stakeholders, but also contribute to the social good and well-being of humanity.
Fresher compensation: How much does TCS pay its new recruits?
TCS is one of the largest employers of fresh graduates in India, hiring over 40,000 freshers every year. The company offers two categories of fresher salaries: Rs 3.36 lakh per annum (LPA) in the Ninja pay category and Rs 7 LPA in the Digital category. The Ninja category is for candidates who clear the National Qualifier Test (NQT), which is a standardized online test that assesses their cognitive skills, programming skills, and domain knowledge. The Digital category is for candidates who clear the NQT as well as a Digital Aptitude Test (DAT), which is an advanced test that evaluates their skills in emerging technologies, such as cloud computing, data analytics, IoT, etc.
TCS also provides various incentives and benefits to its freshers, such as performance-based bonuses, medical insurance, provident fund, gratuity, etc. The company also offers a range of learning and development opportunities to its freshers, such as online courses, certification programs, mentorship programs, etc. TCS also encourages its freshers to upskill themselves and become specialists in their chosen domains. The company claims that it can double the salaries of its employees by upskilling them through its internal programs.
Outlook for the future: Will things get back to the ‘good old days’?
TCS has been witnessing strong demand for its services across all its business segments and geographies. The company reported a revenue of Rs 47,008 crore in the third quarter of FY24 (October-December), which was a 17.8% year-on-year growth and a 4.1% sequential growth. The company also reported an operating margin of 27%, which was an improvement of 40 basis points from the previous quarter. The company also won several large deals in the quarter, totaling $9.4 billion.
TCS is optimistic about the next financial year (FY25) being better than the current one (FY24), but cautions that it may be premature to predict that things will be back to the ‘good old days’. The company expects some headwinds in the near term due to the uncertainty caused by the Omicron variant of COVID-19 and the inflationary pressures in the global economy. However, the company is confident that it has the resilience and agility to overcome these challenges and continue to deliver value to its customers and stakeholders.
TCS is also focused on strengthening its core capabilities and expanding its digital offerings, while also exploring new opportunities in emerging areas, such as AI, cloud, cybersecurity, etc. The company is also investing in its talent pool and enhancing its employee engagement and retention. TCS is also committed to its social responsibility and sustainability goals, such as reducing its carbon footprint, supporting education and health initiatives, and promoting diversity and inclusion.
TCS is a company that has a proven track record of excellence and innovation, and a vision for the future that is aligned with the needs and aspirations of its customers and society. The company is well-positioned to leverage its strengths and seize the opportunities in the post-pandemic world, and achieve its aspiration of becoming a global leader in the IT industry.