emerging markets

Tata

Consultancy

Services

company name

Tata Consultancy Services Limited

core business

Information technology services and consulting

established

1968

headquarters

Mumbai, India

esg consideration

Gender diversity

Company Overview

Tata Consultancy Services Limited (TCS) provides information technology (IT) services, consulting, and business solutions to some of the world’s largest businesses. The company is majority owned by the Tata Group, India's largest multinational business group, and has over 488,000 consultants in 46 countries.

TCS helps large enterprises on multi-year digital transformational projects with differentiated offerings across digital technologies including cloud, IoT (internet of things), business operations, infrastructure, cybersecurity, data and analytics, quality engineering, and automation.

488,000+
consultants in 46 countries

ESG Consideration

TCS’s business model and long-term success largely depends on its ability to attract and retain talent in a highly competitive market with significant progress in fostering gender diversity. Supported by inclusive hiring and heavy investments in mentoring and coaching women at all levels, women currently account for 36% of TCS’s workforce, and the company has multiple structured programs for helping women employees realize their full potential.

Special leadership programs for women

iExcel

Equips high-potential women in middle and senior levels to become leaders

1000+

women have already benefited from the iExcel program

63%

of the iExcel participants have reported role movements thereafter

nWin (Network to Win)

Mentors provide career guidance and leadership development to junior employees

80%

nWin has covered nearly 80% of the company’s female staff

228

iExcellers are active mentors, having mentored 1,825 associates to date

76%

of women were satisfied with their work-life balance (versus 70% among men)

As part of our ESG engagement with TCS, we spoke with the Head of Investor Relations, Kedar Shirali, to learn more about the company’s gender diversity and inclusion initiatives. During our discussion, Kedar highlighted TCS’s focus on addressing the structural issues within the IT industry. He noted that although the recruitment of women for entry-level positions is at a high level, their participation still significantly decreases at higher experience brackets. TCS (and the industry) face a replacement problem: When an individual leaves, the pool of candidates available on the market that share an equal level of experience are still predominately male. The company has acknowledged this issue and implemented structural programs to counteract it.

TCS aims to only have 25% of its employees in the office at any given time by 2025. Offering the added flexibility of working from home should allow the company to recruit and retain more women.

Women who may have felt forced to choose between caregiving and their career endeavours may now achieve a greater balance. With this increased flexibility, they will be able to maintain their working hours and avoid losing traction for promotions for senior leading roles.

Making diversity and inclusiveness a top priority not only has a positive effect on the world, but also lays the groundwork for superior performance. TCS's progressive and inclusive policies are helping the company attract and retain diverse talent. In fact, TCS has one of the lowest attrition rates in the Indian IT industry, which ultimately helps reduce the company’s costs.

Final thoughts

As shareholders, we believe that TCS’s focus on gender diversity and inclusion will pay dividends for years to come in the form of higher employee retention rates and lower costs, as well as through improved creativity and collaboration that could further enhance growth.

Sources: Burgundy research, Tata Consultancy Services filings

About the author

Anne Mette de Place Filippini

senior Vice President, chief investment officer, Portfolio manager

A passionate student of business, Anne Mette began her career in strategy consulting in England in 1992. Over almost a decade, she earned valuable business experience from an inside vantage point by working with senior management on business strategy across various industries. Anne Mette moved to Canada in 1994 and then in 2000 left consulting to join the investment management industry to practice value investing the Warren Buffett way. In 2008, she joined Burgundy to launch an emerging markets equity portfolio and build an investment team to support it.

Anne Mette believes excellent educational institutions are the cornerstone of Toronto’s long-term success and enjoys volunteering her time in this area. In 2006, she received the Arbor Award from the University of Toronto for outstanding volunteer service.