How do you build and run a global company out of India?

Globalization is critical for the future of any company emanating out of any geography. The global mindset and international exposure, whether it is in India, or the Asia Pacific Region or Europe or the U.S., these are becoming absolutely necessary.

So the managers we need to build for leadership positions, and global positions, have to have this kind of a capability. How you operate in different geographies, determines if you are a global corporation or not. Today, the inputs that come into the organization are from all over the world. And you have to have the structures that are necessary for leadership, to make sure that you are presenting a coherent message.

That’s what we are creating and trying to accelerate. And that calls for things like global talent.

When TCS works in the U.S., does it have to feel like a U.S. corporation?

It’s absolutely a must. Culturally, the way you build a global corporation is you adapt — to the culture, to the market, in terms of positioning yourself for market accessibility. And that becomes extremely important. We are local in the markets we operate in.

So does the globalization of TCS impact the way business is carried out within the Indian company itself — and even across the Tata group as a whole?

As the whole Tata group has globalized its various businesses, a major focus has been on the Tata brand itself and how it works as a global brand. We have developed the Tata logo with that in mind. If you want to project a global brand like other global brands that are in existence you have to have a common set of goals running across the organization, and a unified message and mindset across the globe.

Practically, the different companies [in the Tata Group] have forums to get together — sharing knowledge and best practices. Some of us go and teach in those programs, some of us go and do case studies in those programs.

The other factor is hiring global managers. Not only do we give training to managers of other nationalities in various geographies where we recruit, we also bring them to corporate training centers and put together some very focused cultural programs so that we can appreciate the culture of Japan, or Europe etc.

What does it take them for TCS to be mentioned in the same breath as IBM, or for the Tata group to be mentioned in the same breath as a company like GE?

It’s not going to be an overnight affair. The acceleration comes in different ways. If TCS is a leader within the Tata group, with global visibility, how does the whole corporation benefit in branding, publicity, image projection in the marketplace to accelerate the process?

We have articulated a vision in all the group companies to grow not only by organic growth but by inorganic growth. Which means that we look at acquisitions in geographies to adapt to those areas. With the acquisition comes culture, position in the marketplace, comes the brand, so all of these things will play a pert in brand creation.

You address the challenge in multiple ways. You try to compress the time it takes but there is no sense that we can create a global brand overnight. We are very conscious of that. It has taken us 133 years in India to get Tata as an India brand, which every single citizen knows.

Ultimately it is our client base that will determine if we are a global brand or not.

So how long until India is exerting its influence more directly over the world of global business, rather than serving as a services hub taking care of functions for companies that are driving business in other countries?

As global corporations get created in India, Indians with the kind of capability to create those corporations begin to be in India in numbers (whether they have gathered experience in India or abroad). They will begin to influence the way things are done and the way India can be projected.

And the day will not be far off when a global corporation coming out of Bombay or Chennai faced with a global talent pool picks someone of American origin, or someone of European origin, to drive their organization. And the Indian management will be fine with it. It will happen.

About India’s political stability? Does it matter much?

A few years ago the Congress party started the deregulation and liberalization process. Now the BJP and its allies, who have the majority right now, have the responsibility of running the government machinery. The liberalization process has accelerated from what it was when the Narasimha Rao government, with Manmohan Singh, started the liberalization process. So as a result, one thing has become clear, which is that politics and business have gotten completely separated.

While the political system — whether at the state level or central level — may have different compulsions and different working patterns, the policy framework where businesses are allowed to do freely what they want through liberalization measures, has happened. And it is an irreversible process, with the result that businesses are no longer so closely aligned with the political situation.

As liberalization accelerates, you are tied to the global scenario. Once you compare yourself with global regulations in terms of the WTO, tariffs, customs, opening up of the borders, competition — anywhere, any place, any time — and with technology forming an integral part of delivering products and services, I think political situations are no longer a very important factor.

State governments have become much stronger, all over the country. The dynamics have completely changed. The governments are very sensitive to the inflow of business into the country and the inflow of foreign exchange into the country. They ensure the security of the business community, and that policy and procedures are all addressed.

TCS has said it is seriously considering a U.S. public offering. Do you think listing on an international exchange is necessary for a global corporation?

Ultimately you need a vehicle for growing inorganically. And if listing is the vehicle — where are the options instead of pure cash for acquisitions — then that is a serious option. There is also the issue of talent — the granting of options. So on that level, yes.