TCS has an emerging problem: scale. It needs a plan to grow without buckling under its own heft.

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Tata Consultancy Services (TCS) CEO and managing director Rajesh Gopinathan speaks during a news conference in Mumbai on April 19, 2018; Image courtesy: Punit Paranjpe/AFP via Getty Images

Synopsis

As TCS crosses the half-a-million employee mark, it has to confront an issue emerging parallelly: scale. There are signs that the company, too, may have sensed this. Its newer platform-based businesses are housed in separate units, which makes them easier to be hived off. But does the IT behemoth have a strategy to stay agile without compromising growth?

Call it the Goldilocks problem. If a company is too small, it cannot benefit from scale. If it becomes too large, it can become sluggish, collapsing under its own weight. There is no one perfect size that fits all.However, even as Tata Consultancy Services (TCS) crosses the half-a-million employee mark, scale isn’t a problem its management is too concerned about. CEO Rajesh Gopinathan says that he grew up in a colony of the Indian Railways,

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