Unlike Accenture & Cognizant, 'build internal scale' approach drives TCS

The JP Morgan report said the investment community had now accepted this conservativeness and culture consciousness practised by TCS

IT giant Tata Consultancy Services (TCS) has steered away from acquisitions since 2013 with a strong emphasis on building internal scale. Chief Executive Officer (CEO) and Managing Director (MD) Rajesh Gopinathan has time and again reiterated the importance of skilling its workforce but a spike in mergers and acquisitions (M&A) in the recent months, especially those led by global rival Accenture, has raised questions on TCS’s reticence.

“This orthodoxy of TCS contrasts with the acquisitive behaviour of peers such as Accenture and Cognizant who have stepped up their acquisition activity a few notches over the past few years,” said JP