India’s top IT services provider Tata Consultancy Services is now eyeing smaller customers by setting up small and medium businesses (SMBs), which will not only offer IT-as-a-service (ITaaS) to its customers, but also offer software, hardware and the underlying networking infrastructure to small and medium-size companies on pay-as-you-go basis.
 
In IT-as-a-service (ITaaS), the users who do not have much ability to spend, will get the benefits of the technology by paying only periodical instalments of licence fees.
 
IT-as-a-service (ITaaS) is similar to the software-as-a-service (SaaS) model.
 
Through the new SMBs and business model, TCS is addressing what is probably the most underserved segment of the Indian market.
 
Mr. S Ramadorai CEO and MD of Tata Consultancy Services said, “SMBs don’t have to approach multiple vendors, their deployment time is shortened they can build as they grow.”

The company has been working on business model for a year and scaled up total number of employees from 100 to 400 over the last quarter.

N Chandrasekaran, TCS COO said, “The business won’t be people-intensive because the solutions and process are standardised. This will break the linearity of revenues... The opportunity size is very large but the problem is it is very fragmented. In the first year, our focus will be to get the right customers and the delivery model. We will go to other countries but not in a hurry. Some countries have already been identified.”

In India, the TCS expects Rs 2000 crore in revenues from SMBs and business models in 3-5 years. The services will go live from April and around 10 clients have already signed up.  

Tata Consultancy Services will also target professional services and real estate industries in the coming years.