Be careful of Old wine in New Bottle
I congratulate TCS for their digital business intiative as DSS divison. I have been tracking TCS from two persepective.
1. investor - TCS being blue ship software services company with global presence so investing in TCS is preudent. They have been giving great returns for last decade or more.
2. Industry Analyst and Banking technology Expert ( Also Ex Customer): Building team of 300 for largest employer in India and other contient is not rocket science but, starting business sure needs strategy check.
Let us look at TCS history - Largest software and services provider (Their own home baked as well as alliance and partners solution in more than 20 to 25 verticals) developing and managing largest IT setup for e.g. In Banking they manage Citi,USA as well as SBI in India.
DSS will focus on Telecom, Banking and Retail where in already TCS has foot print and acquired customers in one r the other engagement format. TCS already does lot of work in analytics, SCM, banking and many more.
With above background in mind, I feel DSS is born to capture some unexplored areas:
1. TCS would have seen some deals going to Niche players which have point solutions or framework (We can find 10,15 or more such innovative solutions guys like Digital Banking - D3, Digital Insight..) loss of revenue for incremental marketing and sales cost to get it.
2. European Banks have gone ahead of other regions with more than 20% on Digital bank architecture ( BBVA and some more such banks leading the way:)) McKinsey recently published interesting article on Digital Banking space and it's growth. DSS makes sense to be Lin eof Business for company like TCS.
3. Amazon, flipkart,Uber and more fuels retailing market on B2B as well as B2C front opens lot of opportunities on SCM, Analytics, Social Media ( For eg. One leading Analystics service outsorucing company (Listed) has all the major retail MNC brands as their customers and their revenue is lost of business already for TCS as most of these brands also take IT services from TCS :)
4. SBI is premium customer of TCS as their entire core banking business runs on TCS platform but SBI's Digital Banking Platform is build by Accenture and already roll out started for it. This is learing and correcting input for TCS build their offering on DSS.
The way I look at TCS DSS offerings will be how they differentiate from niche players as well as build their offerings which does not resemble their existing offerings other wise it will look like Old wind in new bottle for customers.