TCS-Nielsen deal: Year-end fireworks, but damp squibs to follow
Live MintOn 22 December, Mint reported that Tata Consultancy Services Ltd recently won a $2.25 billion outsourcing contract, the largest ever bagged by an Indian information technology firm, from television ratings measurement company Nielsen. Bendor-Samuel maintains that Accenture and IBM were successful because the transformation in the early 2000s, much like digital transformation today, required a fundamental business model change, and that these were the only two that actually managed to have sufficient will to execute on the new model despite the ostensible “cannibalization” of their mainstream business. And the teams needs to be located onshore and be persistent—the same team for many years, to preserve the team’s learnings—and not a different team every few months as in today’s arbitrage factory model. Nonetheless, the legacy operational excellence model didn’t dissolve overnight, but the growth and new client work went into the labour arbitrage space, which was then the new model. No one can accurately predict how long it will take service providers to change to digital models, but those that cannot master the new digital model will end up being consolidated.
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Nielsen Partners With TCS For IT & Operations Support
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