Geography of Transnational Production Networks
1
Introduction
I believe that Tata Consultancy Services (TCS) is a good example of a transnational corporation with capabilities of worldwide learning, economies of scale and flexibility. TCS have managed to fulfill the objectives of the workplace pension scheme in the U.K. The Engagement of TCS throughout the whole process shows how TCS puts business process outscoring into practice. Thereby, through investigation of this case, I attempt to form an understanding of which strategy TCS has in order to expand into the U.K.’s software industry. Further, I try to find out what is the subsequent technological impact on the home country, India. The paper is structured in the following approach. The first part of the paper forms a conceptual framework. To begin with, I explain the role of TNCs in the global service industry and the technological impacts and risks in general. Further a brief description of TCS and Finally, this part includes also a theoretical frame that defines the business network internationalization process. The second part of the paper introduces an overview of UK’s service sector and the TCS’s involvement in this country as a short introduction to the case. In addition to that, the engagement between TCS and NEST is demonstrated in the case. This case is subsequently analyzed and later discussed in relation to the theory.
Conceptual framework
The service Industry and the technological impact
The service industries contribute to roughly 50 % and 70 % of GDP in developing and developed countries respectively. Indeed, Services are the most important inputs in products which increase their importance in most markets. The development of