TCS

ABOUT THE COMPANY

In 1981, TCS set up India's first software research and development

centre, the Tata Research Development and Design Center

(TRDDC) in Pune. The first client-dedicated offshore development

center was set up for Compaq (then Tandem) in 1985.

In 1979, TCS delivered an electronic depository and trading system

called SECOM for SIS SegaInterSettle, Switzerland. It was by far

the most complex project undertaken by an Indian IT company. TCS

followed this up with System X for the Canadian Depository System

and also automated the Johannesburg Stock Exchange (JSE). TCS

associated with a Swiss partner, TKS Teknosoft, which it later

acquired.

In the early 1990s, the Indian IT outsourcing industry grew

tremendously due to the Y2K bug and the launch of a unified

European currency, Euro. TCS pioneered the factory model for Y2K

conversion and developed software tools which automated the

conversion process and enabled third-party developers and clients to

make use of it.

In 1999, TCS saw outsourcing opportunity in E-Commerce and

related solutions and set up its E-Business division with ten people.

By 2004, E-Business was contributing half a billion dollars (US) to

TCS.

On 9 August 2004, TCS became a publicly listed company, much

later than its rivals, Infosys, Wipro and Mahindra Satyam.

During 2005, TCS ventured into a new area for an Indian IT services

company - Bioinformatics.

In 2008, the company went through an internal restructuring

exercise that executives claim would bring about agility to the

organization.

In 2011, the company entered the Small and Medium

Enterprises (SME) market with cloud-based offerings.

RETENTION STRATEGIES USED BY THE COMPANY

1. compensation

2. career and growth

3. training and development

4. support

COMPENSATION

Compensation constitutes the largest part of the employee retention

process. The employees always have high expectations regarding

their compensation packages. Compensation packages vary from

industry to industry. So an attractive compensation package plays a

critical role in retaining the employees. Compensation includes

salary and wages, bonuses, benefits, prerequisites, stock options,

bonuses, vacations, etc. While setting up the packages, the following

components should be kept in mind:

Salary and monthly wage:

It is the biggest component of the compensation package. It is also

the most common factor of comparison among employees. It

includes

Basic wage

House rent allowance

Dearness allowance

City compensatory allowance

Salary and wages represent the level of skill and experience an

individual has. Time to time increase in the salaries and wages of

employees should be done. And this increase should be based on the

employee’s performance and his contribution to the organization.

Bonus:

Bonuses are usually given to the employees at the end of the year or

on a festival.

Economic benefits:

It includes paid holidays, leave travel concession, etc.

Long-term incentives:

TCS provides long term incentives include stock options or stock

grants. These incentives help retain employees in the organization's

startup stage.

Health insurance:

Health insurance is a great benefit to the employees. It saves

employees money as well as gives them a peace of mind that they

have somebody to take care of them in bad times. It also shows the

employee that the organization cares about the employee and its

family.

After retirement:

It includes payments that an Employee gets after he retires like

EPF (Employee Provident Fund) etc.

Miscellaneous compensation:

It may include employee assistance programs (like psychological

counseling, legal assistance etc), discounts on company products,

use of a company cars, etc.

GROWTH AND CAREER

Growth and development are the integral part of every individual’s

career. If an employee can not foresee his path of career

development in his current organization, there are chances that he’ll

leave the organization as soon as he gets an opportunity. The

important factors in employee growth that an employee looks for

himself are:

Work profile:

TCS knows that the work profile matters a lot for its employees

therefore it tries to give its employees the position which

synchronizes with their capabilities. The profile should not be too

low or too high.

Personal growth and dreams:

Employee’s responsibilities in the organization should help him

achieve his personal goals also. TCS looks into that goals of each

and every employee is fulfilled Organizations can not keep aside the

individual goals of employees and foster organizations goals.

Employees’ priority is to work for them and later on comes the

organization. This is done because the company knows if they will

not contribute in employees growth , the employees will not

contribute in organization growth.

TRAINING AND DEVELOPMENT

Employees should be trained and given chance to improve and

enhance their skills. Many employers fear that if the employees are

well rained, they’ll leave the organization for better jobs.

Organization should not limit the resources on which organization’s

success depends. Trainings provided in the company includes

development of:

Communications skills

Technical skills

Need for such trainings can be recognized from individual

performance reviews, individual meetings, employee satisfaction

surveys and by being in constant touch with the employees.

SUPPORT

Lack of support from management can sometimes serve as a reason

for Employee retention. A healthy relation prevails in the

organization the Supervisor supports his subordinates in a way so

that each one of them is a success. Management also tries to focus

on its employees and support them not only in their difficult times at

work but also through the times of personal crisis. Management

supports employees by providing them recognition and appreciation.

Employers also provide valuable feedback to employees and make

them feel valued to the organization. The feedback from supervisor

helps the employee to feel more responsible, confident and

empowered. Top management also support its employees in their

personal crisis by providing personal loans during emergencies,

childcare services, employee assistance programs, counseling

services, et al. Employers can also support their employees by

creating an environment of trust and inculcating the organizational

values into employees. Thus employers can support their employees

in a number of ways as follows:

By providing feedback

By giving recognition and rewards

By counseling them

By providing emotional support

COMPARISION

COMPARISION BETWEEN RETENTION STRATEGIES OF

WIPRO AND TCS

BASIS WIPRO TCS

SALARY Variable pay strategy is used

by the company this tool is

used to increase the pay of

employees, retirement benefits

life insurance, health

insurance.

Performance based pay and

work not made stressful

Flexible pay system

introduced where employees

can tell their pay by their own

according to their capabilities

Salary includes

Bonus given on festivals

Leave holidays, long term

incentives, employees

benefits fund scheme

created.

BASIS WIPRO TCS

CAREER GROWTH Career based on

promotions of

employees.

Bases of Promotion

The length of service

Merit which implies

the knowledge, skill

and performance

Work profile: give its

employees the position

which synchronizes with

their capabilities.

Personal growth and

dreams,

Feedback given to

employees to improve

themselves, By giving

recognition and rewards

and emotional support

BASIS WIPRO TCS

WORK

ENVIRONMENT

TRAINING

Environment prevails which

strengthen the social

spiritual capital, leading to a

positive work climate of

empowered and supported

workers.

Higher training investment

have higher market

capitalization is motto of

company.

4 percent of its annual

revenues in Learning and

Development, Special

emphasis is placed on

providing necessary learning

the art training facilities

Equipped with world- class

infrastructure.

A healthy environment

prevails as superior and

subordinates have a

healthy relation with each

other so they share all the

doubts, employee

counseling is done.

Training and development

Communications skills

Technical skills developed

SIMILARITIES IN RETENTION STRATEGIES OF

WIPRO AND TCS

1. Both the companies offer insurance benefits to its employees.

2. Career growth is important for both the companies they try to

encourage its employees to perform better so that they can be

promoted

3. Work environment provides employees with a good feedback system

wherein employees can share their problems with their superiors. A

healthy environment is highly important for the growth of company.

4. Job satisfaction is also given high importance if the employees are

satisfied with the work culture and environment.

Proper and regular training is provided to all the employees