|Bid||2,679.15 x 0|
|Ask||2,678.90 x 0|
|Day's Range||2,670.00 - 2,717.95|
|52 Week Range||1,504.40 - 2,885.00|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||32.80|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- Faqir Chand Kohli, the founding chief executive officer of Tata Consultancy Services Ltd., who steered the Indian company for three decades, has died. He was 96.Kohli, who was asked to join the fledgling TCS in 1969 by then Tata Sons Ltd. Chairman Jehangir Ratanji Dadabhoy Tata, did his post graduation from the Massachusetts Institute of Technology before joining Tata group’s power unit in 1951.Tata Consultancy began as a management and technology consultancy before Kohli turned the company’s focus to software development, earning him the sobriquet ‘father of India’s IT industry.’ His strategy paid off as TCS and rivals were ready to tap the global rush to safeguard computers from the Year 2000 bug. Meanwhile, TCS has seen its market value surge to $138 billion from $10 billion when it listed in 2004, making it Asia’s biggest IT services company by value.“He was a true legend, who laid the very foundations for India’s spectacular IT revolution,” Tata Sons Chairman N Chandrasekaran, who was hired as a trainee in TCS by Kohli, said in a statement. “Mr. Kohli led innovations in areas far-ranging from adult literacy, water purification, software engineering, software automation, complex-systems and cybernetics.”TCS was set up on April 1, 1968. In its initial years the company helped local banks with computerizing inter-branch reconciliations, Kohli said in an interview to Bloomberg Businessweek in 2004. In 1972, the company computerized the telephone directory of Mumbai, which was then called Bombay.The outsourcing business, which also helped spawn companies such as Infosys Ltd. and Wipro Ltd., was still a few years away. Kohli saw an opportunity when he became the director of the Institute of Electrical and Electronics Engineers in New York. The role took him to the U.S. city where he built contacts in Burroughs Computers, the second-largest computer company in the U.S. then.Burroughs soon became TCS’ client and asked the Indian company to develop a health-care system to sell to their clients along with the company’s B1700 new series of computers.“TCS was in business,” Kohli said in the 2004 interview. “Each time Burroughs changed their computers, they used us.”Burroughs outsourced many jobs to TCS, according to the History of Computing in India by V. Rajaraman. TCS also sought business from Iran, Switzerland, South Africa, and Canada besides the U.S., according to Rajaraman.“TCS was able to demonstrate that software services export from India was feasible and profitable,” Rajaraman said.Decades later, Indian software companies were ready when a quarter of the world’s 1,000 largest companies sought a solution to help their computers recognize the Y2K bug.The success of the Indian code writers lured new business to develop software to help people use their cell-phones to buy goods and services over the internet. The software services business generated $191 billion of revenue in the year to March, according to the National Association of Software and Services Companies.Kohli, who was born in Peshawar in 1924, which was then part of undivided India and is today in Pakistan, became the general manager of TCS in 1969 and the CEO five years later. He retired from the company in 2000 but continued to work for the Tata Group in an honorary capacity, according to TCS.“Many years ago, there was an industrial revolution; we missed it for reasons beyond our control,” Kohli said in a speech to the Computer Society of India in 1975. “Today there is a new revolution – a revolution in information technology, which requires neither mechanical bias nor mechanical temperament. If we miss this opportunity, those who follow us will not forgive us for our tardiness and negligence.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The coronavirus pandemic has hit women worldwide with job losses and closures of childcare centers. Yet a surprising bright spot is emerging: India’s $200 billion technology services industry, where new rules are expected to provide female workers with a broad swath of flexible work arrangements and fresh employment opportunities.On the outskirts of New Delhi, Teena Likhari, 45, quit her job running operations for the Indian back office of a Silicon Valley company in 2018 because of a family medical emergency. Looking to rejoin this year, she expected a market stunted by lockdowns. Instead, the pandemic had made work-from-home mainstream in her industry, which had long shunned the practice.Not only did the operations manager quickly land a job with Indian outsourcer WNS Global Services, but working from her home in the city of Gurgaon, she began overseeing a 100-member team in the city of Pune about 900 miles away.Likhari is one of the early beneficiaries of India’s decision to lift decades-old restrictions on remote work in back office firms because of the pandemic. The tech services industry -- one of the country’s most important financially -- can now allow employees to shift from traditional offices to work-from-anywhere arrangements, permanently if needed. Indian women, who have often had to sacrifice for their husbands’ careers or other commitments at home, have much to gain from the policy change.“Even a year ago, an operations leader working remotely would’ve been unimaginable,” said Likhari, who has seen scores of women quit work after childbirth, marriage or when a family member fell ill. “The change will allow so many career women like me to do what we do from home, it’s a game changer.”India’s large numbers of English-speaking graduates and cheaper costs relative to the West have spawned a sprawling industry that’s often called the world’s back office because of its global reach. The broad outsourcing sector, which includes technology services in addition to business processes, employs about 4.5 million people. Foreign banks from Deutsche Bank AG to Barclays Plc run wholly owned centers handling everything from global payrolls to technology infrastructure maintenance for themselves and customers. Local outsourcers Tata Consultancy Services Ltd. and WNS offer everything from data analytics to support on financial and accounting processes to international clients.The pandemic has changed workplaces globally but the new norms are particularly significant in India. Social conventions that required women to move to their husband’s locations or stay with family in small towns, or simply be available inside the home to care for elders and children have shut out millions of qualified female workers. Greater flexibility and the opportunity to work from anywhere would give them choices they’ve never had before.Also, India’s old rules - originally designed to prevent misuse of leased telecom lines - had prevented permanent work from home arrangements in back offices. But the pandemic pushed the government to remove decades-old reporting obligations, such as those requiring companies to provide office network diagrams in order to get international communication circuit allocations. The changes opened the door for people to work from home on a long-term basis.A huge segment of working women in India, particularly the less privileged, have faced many of the same problems that have beset their global counterparts during the pandemic as they’ve had to juggle childcare, online schooling and office work from home, forcing some to drop out. Millions of female rural workers and daily wage earners lost jobs because they can’t work from home. Yet, the changes in the technology services industry show just how deeply the pandemic is forcing Indian companies to reimagine workplaces.Companies like WNS, which caters to the likes of Virgin Atlantic Airways Ltd., Tesco Plc and Avon Products Inc., are envisaging a hybrid office and home model, satellite offices in small cities and a blend of full-time employees and gig workers. “We’ll see work going to people rather than people going to work,” said Keshav Murugesh, group chief executive officer of WNS which employs 43,000 workers globally, nearly 30,000 of them in India. “With flexible hours or selected work days, over 100 million Indian women with secondary degrees, could potentially find employment,” he said.Mumbai-headquartered Tata Consultancy, closing in on half a million workers, has already committed to a “25-by-25” strategy -- by 2025, only 25% of its workforce will be working inside an office at any one time.“Given time and location flexibility, less women will quit after having children,” said N.G. Subramaniam, chief operating officer of Tata Consultancy, Asia’s largest outsourcer with $22 billion in annual revenue. “More women will stay in the workforce, more will reach senior leadership levels.”A third of India’s technology services labor force comprises women, already a better gender ratio than most other industries in the country, Nasscom, the industry trade association says. Work from home opportunities in back offices may now offer more opportunities to qualified women in small towns who aren’t allowed to migrate to bigger cities for work.Most of the back office outsourcing centers are located in sprawling campuses within big cities like Bangalore or New Delhi. Barclays, for instance, has over 20,000 workers providing technology solutions globally and UBS Group AG has 6,000 employees, about a third of them in Mumbai alone. Deutsche Bank employs 11,500, nearly half of whom are in the neighboring city of Pune. Most of these workers have been operating from home during the pandemic. India had one of the world’s strictest lockdowns this year. “There is so much talent in smaller cities that has been untapped so far,” said Madhavi Lall, head of human resources at Deutsche Bank India. “Flexible work arrangements would certainly bring that talent to the fore, especially women who find it difficult to migrate or shift their base.”The pandemic has pushed discussions on future work models and strategies, especially with regard to arrangements like staggering employee shifts, rotating days or weeks of in-office presence, she said. And that along with the change in India’s government rules will enable more women to join the workforce.While India is evolving, cultural norms need to progress further, said Debjani Ghosh, president of Nasscom. Added flexibility could certainly improve women’s participation in the workforce. But it could also increase pressure to simultaneously deliver on the home front.“If work-from-anywhere has to succeed,’ Ghosh said, “the mindset that women have to work as well as single-handedly manage the home has to change.”(adds details on lockdown)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- India’s Tata Consultancy Services Ltd. agreed to acquire the employees and select assets of Pramerica Systems from insurance giant Prudential Financial Inc., helping the insurer cut costs to counter low interest rates and the coronavirus fallout.TCS and the Newark, New Jersey-based life insurer signed the agreement for the Letterkenny, Ireland-based tech-services business Wednesday, TCS said. The Indian company will take on more than 1,500 Pramerica employees. No cash will change hands, a person familiar with the matter told Bloomberg News earlier.The deal deepens the Indian IT giant’s relationship with a key client and expands its foothold in Ireland and Europe, said K. Krithivasan, TCS’s president of banking, financial services and insurance. Pramerica staff will continue to provide a range of digital and technology services to Prudential.Global banks and insurers are accelerating efforts to shed non-core assets, like tech support, as they navigate through the economic uncertainty of the Covid-19 pandemic. Just this week, Deutsche Bank agreed to sell its technology services unit, Postbank Systems AG, to TCS by the year end. The price: one euro.The Prudential deal is similar in structure and concept. Shedding the operation is expected to help the insurer trim costs, as it aims for $750 million in savings by the end of 2023. For TCS, Pramerica will bring multi-year services contracts, strategy expertise and a development center in Ireland. Under the agreement, which awaits regulatory approval, Prudential will keep the Pramerica Ireland entity.Tata Consultancy is Asia’s biggest exporter of software services with a market value of more than $130 billion. It has more than 450,000 employees around the world and generates $22 billion in annual revenue from selling software services and products to a range of customers including Citigroup Inc., BT Group Plc, Panasonic Corp. and Qantas Airways Ltd.Prudential Financial is re-pricing services and moving to products that are less rate-sensitive, the insurer said while announcing quarterly earnings last week. It put share buybacks on pause as the fallout of the coronavirus outbreak clouded business visibility. Chief Executive officer Charles Lowrey said at the time the company would explore potential asset sales and that deal-making would help reshape the business.(Updates with company’s announcement from the first paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.