TCS shifting from Services to Product echleon

When in 2009 Natrajan Chnadrasekharan took over as the CEO of India’s largest Software Exporter, Tata Consultancy services, he had some odd goals in mind. He even expressed them by promising a non-linear growth within a span of 2 years. What he meant was to rival major Software Product companies like Micorsoft, Adobe etc.
Now TCS is all set to show a non linear growth in balance sheets by selling off a number of In-house Software Products, a trend which is likely to be followed by other Software Service Providers of the Country.

For TCS, the main pillars of non-linearity would be TCS Bancs, its core banking software; Diligenta, its insurance services platform that is gaining traction in Europe; and iON, the cloud-based IT-as-aservice offering for small and medium businesses. TCS Bancs is already being used by a majority of Banking Sector organizations

It also has a £600-million (Rs 4,700 crore) contract from UK state pension authority as well as another $2.2-billion (Rs 10,800 crore) deal with UK insurer Friends Life.

TCS and other Indian providers are evolving beyond their legacy in application development, and attempting to develop automated and repeatable assets much like their global competitors have done for years.

This is a time of paradigm shift in the Indian IT Industry, when the dependency on the Foreign Clients is getting reduced. There is being a transition from Services to Product. Out-sourcing is being replaced by On-shoring and In-house product development.