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 Salary includes

by the company this tool is Bonus given on festivals
used to increase the pay of Leave holidays, long term
employees, retirement benefits incentives, employees
life insurance, health benefits fund scheme
insurance. created.
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

BASIS WIPRO TCS

CAREER GROWTH Career based on Work profile: give its
promotions of employees the position
employees. which synchronizes with
Bases of Promotion their capabilities.
The length of service Personal growth and
Merit which implies dreams,
the knowledge, skill Feedback given to
and performance employees to improve
themselves, By giving
recognition and rewards
and emotional support

BASIS WIPRO TCS

WORK Environment prevails which A healthy environment
ENVIRONMENT strengthen the social prevails as superior and
spiritual capital, leading to a subordinates have a
positive work climate of healthy relation with each
empowered and supported other so they share all the
workers. doubts, employee
counseling is done.

Higher training investment

have higher market Training and development
capitalization is motto of Communications skills
company. Technical skills developed
TRAINING 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.

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