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CONTENTS

Objectives of the Project

To study and understand the existing landscape of Indian IT industry

To identify the major market players in the Indian IT sector

To understand the business portfolio of TCS and Infosys

To study and analyze the Corporate strategies used by TCS and Infosys

Scope of the Project

The scope of the project is Indian IT industry and mainly concentrated to TCS and Infosys and

with the study we can get some insights regarding the Corporate strategies that are used by these

two firms and also draw certain conclusions based on our findings.

Introduction

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) service, consulting and business solutions company headquartered in Mumbai, Maharashtra. TCS operates in 46 countries. It is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and the National Stock Exchange of India. TCS is one of the largest Indian companies by market capitalization ($80 billion) and is the largest India-based IT services company by 2013 revenues. TCS is now placed among the ‘Big 4’ most valuable IT services brands worldwide. In 2013, TCS is ranked 57th overall in the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT services company and the first Indian company. It is the world's 10th largest IT services provider, measured by the revenues.

Vision

"TCS’ vision is to decouple business growth and ecological footprint from its operations to address the environment bottom-line. The green approach is embedded in our internal processes and services offerings...... From green buildings to green IT to a green supply chain, our mantra is to grow sustainably and help our customers achieve sustainable growth through our green solutions and service offerings".

Mission:

• To help customers achieve their business objectives by providing innovative, best-in-class consulting, IT solutions and services.

• To make it a joy for all stakeholders to work with TCS.

Values:

• Leading change

• Integrity

• Respect for the individual

• Excellence

• Learning and sharing

Workforce: TCS has over 319,000 of the world’s best-trained IT consultants in 46 countries.

Full Services Portfolio:

• Application Development and Maintenance

• Business Intelligence

• Enterprise Solutions

• Assurance Services

• Engineering and Industrial Services

• IT Infrastructure Services

• Business Process Services

• Consulting

• Asset-leveraged Solutions

• Supply Chain Management

• Enterprise Security and Risk Management

Corporate Governance:

TCS:

Strong leadership and corporate governance have been TCS' hallmark. Board Of Directors

Non-Executive Board Members

o Cyrus Mistry, Chairman

o Prof. Clayton M Christensen, Director

o Aman Mehta, Director

o Dr. Ron Sommer, Director

o Venkatraman Thyagarajan, Director o Dr. Vijay Kelkar, Director

o Ishaat Hussain, Director

o Phiroz A Vandrevala, Director

o OP Bhatt, Director

Executive Board Members

o N Chandrasekaran, Chief Executive Officer and Managing Director

o Aarthi Subramanian, Global Head of Delivery Excellence Group

Corporate Social Responsibility:

At TCS, sustainability is seen as a state of being in balance between Corporate Economic Responsibility (CER) and Corporate Social Responsibility (CSR).

Initiatives

• Key Facts and Figures

The guiding principle of TCS’ Corporate Social Responsibility programs is “Impact through Empowerment,” where empowerment is a process of strengthening the future today, so that risks are minimized, value created and certainty is experienced. We strive to ensure that the communities engaged through our CSR initiatives also experience certainty in their lives.

The core areas for TCS’ CSR programs are education, health and environment. The choice of education as a theme flows from TCS being in the knowledge domain. Similarly, attention to the cause of health acknowledges that health is a vital precondition for promoting social good. Concern for the environment is in line with our belief that this global cause demands our attention to ensure a sustainable and productive planet. These themes are established centrally for adoption or adaptation across all geographies.

TCS' Approach

TCS has chosen the following channels to drive its CSR initiatives:

• Developing innovative solutions to address large-scale societal problems by utilizing our IT core competence.

• Volunteering for projects that address the felt need of communities in which TCS operates, while aligning with the core themes of TCS’ CSR.

• Participating in community development program championed by our clients.

• Partnering with select non-government and civil society organizations and other government bodies.

• Supporting large-scale causes such as disaster relief or any other cause as determined by the Corporate CSR Council.

TCS' Initiatives

Some of the initiatives include the following:

RegionSustainable Community Initiatives

India Adult Literacy Programs

University Alliances

TCS’ BPO Employability Program

Academic Interface Program

mKRISHI

WebHealth Center

Mansuki

TCS Maitree village development initiative

TCS Maitree’s Advanced Computer Training Center

Med Mantra

InsighT

Empower

CSR Technical Team’s support to social organizations

North AmericaFirst Book Club

goIT

UK and Europe IT Futures

Environmental sustainability and the ICT industry

Asia Pacific InsighT- Australia

SINDA Computer Training

Go for IT!

Library Program in China

Operation Smile

Latin America Environment Leaders

Middle East and Africa Landmark computer training

Scholarships at CIDA City Campus

City Ambassadors Football Club

Support to Reach for Dreams

Key Facts And Figures

In the year 2011-12 year TCS associates volunteered 58,362 hours on CSR initiatives and through these initiatives reached out to 57,90,604 beneficiaries.

Infosys :

If all Indian companies were subject to the level of scrutiny that Infosys undergoes by media and analysts, the Indian corporate governance landscape would be much more rosy. Media and analysts do not even note that India's largest listed real estate developer has made it possible to unilaterally give lifetime pensions to its directors at a time when the company has a stressed balance sheet and is trying to sell assets. On the contrary, Infosys, which for long has been the paragon of corporate governance in India, is subject to greater scrutiny, bordering on speculation. However, this scrutiny of Infosys may not be entirely unjustified. First, ever since the initial public offering in 1993, Infosys was the torchbearer of corporate governance in India and benefited tremendously from the goodwill it generated from various stakeholders - investors, employees, customers and community. Secondly, today Infosys' free-float market capitalisation is one of the highest among India-listed companies. This means that investors have invested more funds in Infosys than most other Indian companies. Investors and analysts had rightly come to expect the best corporate governance from Infosys.

There are solid reasons recent observations at the company raise question marks about its adhering to corporate governance in spirit. Rohan Murty, the son of the founder-chairman of the company was appointed as an executive assistant to the incoming executive chairman. The appointment in June 2013, an act of nepotism, broke an oft-repeated statement by the company founders that their children would not aspire for roles within the company. If news reports are to be believed, Rohan is now being projected as a vice-president of the company. Such a move would change the chairman's stand that Rohan doesn't aspire for senior leadership positions in the company. This casts doubts on the credibility of any statements made by the company and its chairman. Any appointment should be commensurate with the experience and expertise of the individual, and any fast-tracking without proper grooming would cast serious doubts on the founder-chairman's intentions and the company's governance standards.

The recent resignations by a few senior executives, including that of Ashok Vemuri, a potential chief executive officer (CEO), shouldn't be seen as alarming. Talent retention is an important aspect of leadership development but it isn't that half of Infosys' senior management is walking out of the company. What is more alarming is that S D Shibulal, the current managing director and CEO, continues to function while, by bringing back N R Narayana Murthy as an executive chairman there was a show of no-confidence in Shibulal's leadership by the board of directors. Infosys needed some inspired leadership, and the current CEO didn't provide it. Shibulal had a fantastic performance record but wasn't the right fit for the CEO role. The company suffered under the wrong CEO. That Infosys chose to bring a person out of retirement as the executive chairman to reenergise the company showed that there was either a dearth of leadership within the company or the board of directors didn't have confidence in other senior executives to take over as a CEO.

The board of directors, as trustees of shareholders, are responsible for securing the company's current and future leadership. The board of directors needs to set the ball rolling on two counts. The first is to convey to investors as to how they are mitigating key-man risk, the second being a succession plan for the current CEO. Both issues can be addressed only by putting in place and articulating a strong leadership development plan. By being silent and non-transparent about the leadership programme, the company is only fuelling speculation.

Any board's charter is to ensure proper risk management. The Infosys board of directors needs to allay fears that the company today suffers from a key-man risk. No company, especially the size of Infosys, can be a single person's making. Infosys badly needed a no-nonsense, strong leader who leads by example. The company got one when Narayana Murthy returned in June 2013. But now is the time to think beyond and prepare for the future. Leadership succession plans should consider not only planned transitions but also unplanned ones.

Succession planning for the new CEO should begin in right earnest. The board of directors needs to announce the appointment of a committee headed by an independent director to find a successor for the current managing director and CEO. The new candidate may well be an outsider. The process and the timelines should be announced. A smooth transition to a new CEO would do the company a lot of good. The board should select a CEO who is capable of identifying current challenges and those that lie ahead. The CEO should possess qualities that position the company for navigating the challenges successfully.

To reassure investors, Infosys should also make the leadership development plan within the company more transparent. The company is only as good as its people, being its greatest assets. The company should tell investors what measures are being taken, and what investments are being made, to ensure that there is a strong leadership development programme in place and the company wouldn't be floundering for leaders in future.

Key-man risk, nepotism, lack of leadership, ineffective CEO were terms that wouldn't be associated with the Infosys corporate governance practices in past. It is time the company reclaimed its gold standard in Indian corporate governance.

• Infosys, once the gold standard for corporate governance in India, now finds itself in a list of companies that a leading brokerage firm categorizes as the 'Underbelly of Indian IT'.

The firm, Ambit Capital, notes several developments in recent times that have lowered governance standards at Infosys, and says the market is yet to discount these appropriately.

Two of those developments have been noted by many in the past few months. These include co-founder N R Narayana Murthy's return to the helm as executive chairman last June "despite the firm's well-articulated policy of executives retiring at the age of 60 years".

• More surprising was (son) Rohan Murty's entry into Infosys as NRN's executive assistant. Whilst this is a position of power, but not of control, the manner in which Rohan Murty was brought in raised eyebrows to put it mildly, all founders have time and again mentioned about not letting family manage the business

Infosys promoters' representation on the board is now significantly higher relative to their shareholding in the company. The three promoters who are also board members — N R Narayana Murthy, S D Shibulal and Kris Gopalakrishanan — collectively hold 10% stake in the company and they represent 23% of the voting rights on the board.

TCS has a promoter shareholding of 73.9%, while the promoter representation on the board is 9.1%. Azim Premji promoted Wipro has promoter holding of 73.5% and a promoter representation of 7.7%.

With the highest promoter representation and the lowest proportion of independent directors on the board, Infosys' board independence appears to be weakest among the tier-1 firms. The $8 billion IT company has 13 board members, including 7 independent directors.

However, this could change next year, when Shibulal and Gopalakrishnan retire. Murthy has said the company would effect changes to its board in the next 12 months. Board members wield a higher degree of influence and control in decision-making. In the case of TCS, 5 out of 11 are non-independent directors and they may influence decisions.

The pattern in Infosys' revenue guidance over the last three years has caused extreme volatility in the share price.

Q-2

Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment.

Our market is facing changes every day. Many new things develop over time and the whole scenario can alter in only a few seconds. There are some factors that are beyond your control. But, you can control a lot of these things.

Businesses are greatly influenced by their environment. All the situational factors which determine day to day circumstances impact firms. So, businesses must constantly analyze the trade environment and the market.

There are many strategic analysis tools that a firm can use, but some are more common. The most used detailed analysis of the environment is the PESTLE analysis. This is a bird’s eye view of the business conduct. Managers and strategy builders use this analysis to find where their market currently. It also helps foresee where the organization will be in the future.

PESTLE analysis consists of various factors that affect the business environment. Each letter in the acronym signifies a set of factors. These factors can affect every industry directly or indirectly.

The letters in PESTLE, also called PESTEL, denote the following things:

Political factors Economic factors Social factors Technological factors Legal factors Environmental factor

Often, managers choose to learn about political, economic, social and technological factors only. In that case, they conduct the PEST analysis. PEST is also an environmental analysis. It is a shorter version of PESTLE analysis. STEP, STEEP, STEEPLE, STEEPLED, STEPJE and LEPEST: All of these are acronyms for the same set of factors. Some of them gauge additional factors like ethical and demographical factors.

The PESTLE analysis of TCS is as follows:

Political:

The three major revenue zones of TCS are US, Europe and India. The political structure in India is constant as the ruling party started to rule again after a majority win in the 2009 General Election which is a positive view for the company as the political influence will remain constant in this zone. In US the government had announced a new rule on outsourcing as the companies which outsource the work outside US; they will not get the Tax benefits which even creates a negative phase. TCS is very well established in US as it can work from US itself, But even then the ratio of outsourcing the new projects will be much reduced in future. The government organizations and PSU had decided to give more domestic projects to TCS which is positive strategy.

Economic:

The Steady fluctuation in the International market and the fluctuation in the country's currency rate are considered to be the major negative influences. The Global meltdown which paused the IT's vigorous growth had reduced the IT business internationally. But even then the TCS and other firms where managed to maintain their breakeven profits. The Domestic Markets had grown by 20% and approximately reached USD 25 billion in 2009-10 which was estimated by NASSCOM which is an advantage for the Indian companies in order to maintain the equilibrium. The crash in the Real estate market is also considered as one of the advantages for the companies as they can buy sites for new branches for lesser rates and the reduction in the Rental costs. The rapid increase in the complexities in IT Industry, the new innovative services and products from competitors. The new competitors entering the IT market is not a very big threat but also to be taken in account.

Social:

English is taken as the official language of TCS which made the organization to make the business dealings with the English speaking nations like US and Western Europe. The manpower available in India is an added advantage for the Indian IT firms. The availability of Technicians in India is bit more than the resources available to the other countries. India is going to lead the next twenty years of spam for holding the highest working population globally, which is a major advantage for all the IT companies. The recent job cuts in US and other European countries where TCS widen their business boundaries which lead to give new job offers to the native peoples, which created a soft bond towards the company. The availability of high quality manpower globally, the frequent and rapid transform in consumer lifestyles, the improvement in the relationships between the clients.

Technological:

India is considered to be a well developed country in the telecommunication field which provides the lowest call rate(1-2 US cents)which makes Indian firms like TCS to thrive high in the field of BPO, as the core of these business is to communicate among customers and company representatives. India holds the largest population with mobiles and an average population

expected to have the subscriber base of 503 million the end of 2010. TCS holds its global head quarters in India which has the highest telephone network after china.TCS is much more concentrating in the next generation on wireless which the global technology is attracted towards that.

Strategic Partners

Microsoft - Global System Integrator Partner

IBM - Global System Integrator Partner

Oracle - Global System Integrator and Global Certified Advantage Partner

SAP - Global Consulting Partner

Growth Engine Partners

Siebel - Consulting Partner

SUN - System Integrator Partner, GSS Partner

BEA - TCS is BEA' Strategic Partner

Web Methods - Global System Integrator, Preferred Offshore Partner

Legal:

IT firms in India is frequently facing the legal issues from the employees and other mutual competitors, Each Indian IT Company is extended their boundaries globally and have their own global HR policies, all the IT companies including TCS have undergone the issue of legal bonding made to make the employee to stick into their companies for long term which is an negative aspect on TCS. Except in US TCS is getting tax benefits globally.

Environmental:

The Environmental concern of TCS shoots from the Tata Group which is also added in the "Code of Conduct". TCS considers the change in the climate is considered as the main aspect which affects the economic stabilities. TCS is much more concentrated on the environmental issues like global warming, energy utilization, water consumption and etc.

The PESTLE analysis of Infosys Technologies Ltd. is as follows:

Political

While discussing PESTLE analysis of Infosys Technologies Ltd. firstly I discuss political aspect of PESTLE analysis of Infosys Technologies Ltd. As part of the countrywide movement and revolutionize, Infosys Technologies Ltd. is immediately one pattern of dense that are triumphant in equally types of business that is familial and worldwide commerce (2003). The positive aspects of the political analysis of Infosys Technologies Ltd. are that Indian political structure is considered stable enough expect the fact that there is a fear of hung parliament. Government owned companies and PSUs have decided to give more IT projects to Indian IT companies. The negative aspects of the political analysis of Infosys Technologies Ltd. are that U.S. government has declared that U.S companies that outsource IT work to other locations other than U.S. will not get tax benefit and terrorist attack or war.

Economic

While discussing PESTLE analysis of Infosys Technologies Ltd. secondly I discuss economic aspect of PESTLE analysis of Infosys Technologies Ltd. The positive aspects of the economic analysis of Infosys Technologies Ltd. are that Domestic IT Spending(Demand): Domestic market to grow by 20% and reach approx USD 20 billion in 2008-09 - NASSCOM. Decline in real estate prices has resulted reducing the rental expenditures and due to recession, the layoffs and job-cuts have resulted in low attrition rate. Along with that economic attractivenessdue to cost advantage and other factors is also a positive factor. The negative aspect of the political analysis of Infosys Technologies Ltd. is of global IT spending trends.

Social

While discussing PESTLE analysis of Infosys Technologies Ltd. secondly I discuss economic aspect of PESTLE analysis of Infosys Technologies Ltd. The positive aspects of the economic analysis of Infosys Technologies Ltd. are that English is widely spoken language in India, English medium being the most accepted medium of education. Thus, India boasts of large English speaking population.Regarding educationa number of technical institutes and universities over the country offer IT education are there and working age population is also a constructive societal factor.

Technological

While discussing PESTLE analysis of Infosys Technologies Ltd. secondly I discuss economic aspect of PESTLE analysis of Infosys Technologies Ltd. The positive aspects of the economic analysis of Infosys Technologies Ltd. are telephony that is India has the world's lowest call rates (1-2 US cents). India expected to have total subscriber base of about 500 million by 2010. ARPU for GSM is USD 6.6 per month. India has the second largest telephone network after china. Tele-density - 19.86 %. Indian technology also give a chance to enterprise telephone services, 3G, Wi-max and VPN are poised to grow. Another positive aspect of Indian technology is the Internet Backbone. Due to IT revolution of „90s, Indian cities and India is well connected with undersea optical cables. Along with that new IT technologies like SOA, Web 2.0, High-definition content,

grid computing, etc and innovation in low cost technologies is presenting new challenges and opportunities for Indian IT industry.

Legal

While discussing PESTLE analysis of Infosys Technologies Ltd. secondly I discuss economic aspect of PESTLE analysis of Infosys Technologies Ltd. The positive aspects of the economic analysis of Infosys Technologies Ltd. are that IT SEZ requirement ofIT companies can set up SEZ with minimum area of 10 hectares and enjoy a host of tax benefits and fiscal benefits. Contract / Bond requirements: Huge debates surrounding the bonds under which the employees are required to work, which is not legally required. IT Act like Indian government is strengthening the IT act, 2000 to provide a sound legal environment for companies to operate esp. related to security of data in transmission and storage, etc.Companies operating in Software Technology Park (STPI) scheme will continue to get tax-benefit till 2010.

Environmental

While discussing PESTLE analysis of Infosys Technologies Ltd. secondly I discuss economic aspect of PESTLE analysis of Infosys Technologies Ltd. The energy efficient processes and equipments that companies are focusing on reducing the carbon footprints, energy utilization, water consumption, etc.

Current position of IT/ITeS sector in India

IT Companies in India

Latest update: July, 2015

Indian talent pool ready to take it to the next level

•About two per cent of the industry revenue is spent on training employees in the IT-BPM sector

•US$ 1.6 billion is spent annually on training workforce and growing R&D spend

•40 per cent of total spend on training is spent on training new employees

•Numerous firms have forged alliances with leading education institutions to train employees

Top Players in IT Industry in INDIA

Information Technology (IT) companies in India are constantly doing well for over a period of time and NASSCOM predicts a growth of 13-15% in export as well as 10-12% growth in domestic market which is highest growth prediction since the 2011-2012 financial year. The list include giants like TCS, Infosys, Wipro, Tech Mahindra, HCL. The other prominent companies in the top 10 are Rolta, Cyient, Oracle Financial Services, Mphasis & Mindtree.

Here is a list of top 10 IT Companies in India for the year 2015 based on revenue, profit and market capitalization.

1-TCS - Tata Consultancy Services

Revenue: Rs. 64672.93 Crore

Net Profit: Rs. 18474.92 Crore

Market Capitalisation: Rs. 487919.14 Crore

2. Infosys

Revenue: Rs. 44341 Crore

Net Profit: Rs. 10194 Crore


3. Wipro




4. HCL Technologies




5. Tech Mahindra




6. Oracle Financial Services




7. Mindtree




8. Mphasis




9. Rolta




10. Cyient




GEOGRAPHICAL SPREAD

Infosys

TCS

PORTER'S ANALYSIS ON TCS:

Being TCS itself is an supplier, it do not have problem with the suppliers, the other four forces which are problematic to TCS are the threat of new entrants, the bargaining power of customers, the threat of substitutes and the spirited rivalry between the existence.

In the untimely days the software exports, the software wholesale market was overlooked by very few massive like Accenture, EDS and IBM, where the Indian concern were outlined as small level companies in result the TCS and other Indian software companies competed themselves in the lower end of the business, which resulted TCS and other organizations to choose small projects and tasks which are simple to do.

TCS also faced a customer market that was conquered by the insurance companies and huge banks. While TCS keenly hunted for alliances with larger sellers as a competitive strategy, TCS most successful approach was to honestly loom clients and admit the minor charges that its competitive pose dictated.

The entry of new companies have reduced rapidly as the huge companies like TCS, Infosys and Wipro have developed and grown huge in their market share, size and reliability with their customers. Though, the companies struggle to decrease their straight rivalry through demarcation of manufactured goods, in every market there has been enormous competitors.

TCS has to work seriously upon reducing the bargaining power of customers. TCS can prevent price strategy in mixing up with purchase decision. It means that TCS should bring more than undifferentiated indoctrination by moving up the cost sequence. Such approach might be difficult in the software outsourcing business as the clients have an in-depth domain enterprises and rights of inclination to hold on to the work allocated under considered consulting. The clients very well know that the complete bargaining power lies in the strategic consulting; outsourcing that may reduce their bargaining power. TCS have to build up enough knowledge so as to construct outsourcing these errands a convincing worth plan. Of course, it is exactly in this empire that the multinational outsourcing firms such as Accenture, IBM, and EDS are the most vicious customers.

Falsifying groupings are often viewed as a superior approach to offset client's bargaining command. Though, constructing alliances with companies functioning in client's sites have to be low-priced as this would advance focus on TCS in application progress. On other side, the attainment of a medium-sized US firm with sturdy customer relations and domain expertises could offer a striking opportunity. Even if expenses per employee would increase, the go up would be minute since workers needs are lesser for higher value-added jobs.

The main anxiety for TCS is opposition from existing companies like Wipro, Infosys and CTS as it has produced rivalry for active dealings and twisted noteworthy pricing stress. Internationally, Companies like EDS have sited themselves as competent of handling huge, "turnkey" ventures which can distinguish themselves from contestants such as Accenture and IBM that spotlights on superior value-added jobs such as consulting. This proposes an organically-driven expansion strategy for TCS: as TCS should persist to do the similar sort of job that it presently do, but should attempt to arrest a better section of the value-addition by accepting huge projects. Although it has exhibited a potential in distant project management, TCS would be requisite to increase the same capability.

But, there are also few risks which prevail in this strategy. TCS's huge dimension implies that it might have already exploited wealth to amount in applications improvement. Adding to that, the strategy may tender the latent for huge growth since it essentially engages elevated value-added actions. Before, this was hard, partially owed to the technical complexity in rejecting the value-chain away from the modularization of appliances programming. In recent years, though, systems design, manufacturing services, and systems integration job have increasingly been outsourced suggestive of that, if the abilities are at hand, those works could be completed in India.

The threat of substitutes are mainly from the China, Philippines and eastern Europe which emerge as a biggest threats to the Indian IT companies, which is mainly due to the low cost. The companies from these countries quote very low price for the same quality of products as the

Indian Companies do, which creates a great impact on medium to long term projects. It is difficult for TCS being operated from India to attain the organic growth.

As the globalization is at its peak growth TCS view on competitors should be broad and effective. The domestic competitors itself is capable of offering a strong competition for TCS.

The uncontrollable fact that IT companies face globally in the competition is the bargaining power of customers as the increase in the competition and globalization resulted in the production of quality products with low price which finally makes the customer to gain the maximum profits. As the IT global market is broad with very high competitors it is unavoidable to prevent the new entrants into the market. The TCS may not have competition in the domestic market but globally TCS is still viewed as the company which works low- level projects.

PORTER'S FIVE FORCES MODEL:INFOSYS

Threat of Substitutes:

While discussing the Porter's analysis of Infosys Technologies Ltd. the very first point of discussion is threat of substitutes. Regarding threat of substitutes other offshore locationssuch as Eastern Europe, the Philippines and China, are emerging and are posing threat to Indian IT industry because of their cost-advantage. However, this should have an impact only in the medium to long term. Along with that pricequoted for projects is a major differentiator, the quality of products being same.

Bargaining power of supplier:

While discussing the Porter's analysis of Infosys Technologies Ltd. the second point of discussion is bargaining power of supplier. Due to slowdown, the job-cuts, the layoffs and bleak IT outlook and supply of IT professionals is no longer that favorable to employees. Availability of vast talent pool that is fresher and experienced is also increase buying power of supplier.

Bargaining Power of Customers:

While discussing the Porter's analysis of Infosys Technologies Ltd. the third point of discussion is power of buyers. Large number of IT companies vying for IT projects resulting in high competition for projects. On the other hand huge decline in IT expenditure: Indian IT sector is dependent on USA and BFSI in particular for majority of its revenues, and with the recent financial crisis, the new spending from these has reduced tremendously. However, for the existing products and services, the clients continue the old companies.

Barriers to Entry: Low

While discussing the Porter's analysis of Infosys Technologies Ltd., the next point of discussion is a new entrant that isLow capital requirements and large value chain which provide space for small enterprises. Along with that MNCs are ramping up capacity and employee strength.

Rivalry among Firms: High

While discussing the Porter's analysis of Infosys Technologies Ltd., the last point of discussion is rivalry among firms.Commoditized offerings, ‘low-cost, little-differentiation' positioning, high industry growth and strong competitors like few numbers of large companies.

Indian IT industry SWOT Analysis.

i. Excessive dependence on

USA for revenues.ii. Excessive dependence on

BFSI sector for revenueiii. High rate of attrition.iv. Decreasing competitive

advantage.

i. Great scope for product innovation.

ii. BFSI.

i. Rupee dollar.ii. Increase Competition.iii. Global economic

slowdown.

WEAKNESSSTRENGTH

OPPORTUNITY THREAT

i. Cost advantage.ii. Breadth of service

offering.iii. Ease of scalability.iv. Quality and Maturity of

process.v. Global and 24/7 Delivery

SWOT Analysis OF TCS

Key Differentiators of TCS

Pioneer in the industry & Brand

Having started in 1968, TCS has established himself as the industry leader. Being part of the trusted Tata group is also a big differentiator for TCS giving it a strong brand strength.

Integrated full-services player

i. Extensive global reachii. Strong financial

performanceiii. Employee Management

skillsiv. innovation labs

i. Singnificant exposure to financial services market.

ii. Lack of scale in consulting operations

Focus on SMB segment

Growth in worldwide IT services

Focus on high end business and IT consulting

Expanding operations in more countries

Increasing employee cost

intense competition from foreign firms like accenture, IBM etc

Consolidation in the end market

Rupee appreciation

Increased competition from low wage countries like china etc.

STRENGTH WEAKNESS

THREATOPPORTUNITY

Portfolio of offerings extends from consulting to implementation, testing and support; from engineering services to BPO; from products to end-to-end solutions.

Collaboration with multiple stakeholders

Having worked on large global scale enterprise projects, TCS appreciates the need for flexibility to work with multiple stakeholders from customers, partners, and other service providers. TCS have developed innovative engagement models that have provenTCS’ability to deliver significant value to its customers in managing their projects as the sole solution provider, or prime/lead partner, or supporting partner.

Global Network Delivery Model

Unique network of 79 Delivery Centers in Brazil, Uruguay, Chile, China, Hungary, UK, Japan, Australia, Singapore and India that operate at the same quality, security and skill levels, giving customers the same experience of certainty across the organization globally with a lower total cost of ownership.

High Quality and Maximum security

In 2005, TCS was awarded enterprise-wide triple certification for :Quality (ISO 9001:2000), Security (BS 7799-2:2002) & Services (BS 15000-1:2002).

Innovation Network

TCS has established 19 labs with strong links to start-ups, academia and alliance partners to continuously develop innovative solutions for their customers.

SWOT Analysis of Infosys

Strengthi. A well established leader among

Indian Offshore companies.ii. Well defined service portfolio.

iii. Scale.iv. Focus on Innovationv. Strong Relationship with Clients

Weaknessi. Leadership

ii. Declining Growth and Marginiii. Pricing Pressureiv. Lower utilizationv. High amount of Intangible

Opportunityi. Emerging Technology(big

data ,cloud)ii. Significant opportunity in Product

and platform segmentiii. Strategic Acquisition

Threati. Global economy

ii. Vendor Consolidation and High Competition

Market share

Corporate Strategy of TCS

Growth has been the key theme of TCS' journey so far. Here is the strategy TCS is pursuing for continued longer-term growth.

Mission:

To help customers achieve their business objectives by providing innovative, best-in-class consulting, IT solutions and services

To make it a joy for all stakeholders to work with TCS

Corporate Overview

Tata Consultancy Services Limited (TCS) is an IT services, business solutions and outstheircing organization that delivers real results to global businesses, ensuring an unmatched level of certainty. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model™ (GNDM™).

The Growth Opportunity

TCS operates in a large, growing global market for IT and IT-enabled services. Globally, organizations are spending more on IT as new technologies emerge, offering unique opportunities to gain a competitive advantage. Moreover, industries and geographies that lagged behind others in leveraging technology are now catching up. Further, the proportion of IT services budgets that is spent on external providers is going up as the shelf-life of technologies is reducing and corporations are looking for greater efficiency and variability in their costs. With a minuscule market share in this growing market, there is much headroom for TCS’ longer-term growth.

Strategy For Longer-Term Growth

TCS’ strategy for longer-term growth is to continually extend the core IT servicesWorldwide spend on IT Services business by expanding its geographic reach, industry coverage and service capabilities and deepening existing client relationships, building or acquiring emerging businesses and adopting or creating new business models and business solutions through continuous innovation.

Key elements of this strategy are summarized here:

Customer-centricity Full Services Capability Global Network Delivery Model™ (GNDM™) Strategic Acquisitions Non-linear Business Models

Customer-centricity

TCS seek to build, nurture and deepen customer relationships so they are trusted strategic partners to their customers. Their industry-segmented, customer-centric organization is an important enabler that has ensured high levels of accountability, superior customer service and intimacy.

Full Services Capability:

TCS has been investing in building a comprehensive, integrated portfolio of services to capture the entire value chain of IT, presenting a compelling value proposition for global enterprises making us a one-stop shop for many key clients, significantly deepening the relationship and boosting their share of the wallet.

Global Network Delivery Model™ (GNDM™):

TCS' GNDM™ lets us seamlessly and uniformly deliver services to global customers from multiple locations across India, China, Europe, North America and Latin America. Teams separated by time zones collaborate on projects, leveraging all of TCS' assets while subscribing to one global service standard. It uses multiple levers of time zone, language, skills and local business knowledge to deliver high quality business solutions seamlessly across the globe, using a globally connected workforce, integrated delivery processes and multi-tiered infrastructure. This model developed by TCS is now recognized as the benchmark of excellence in software development. For large clients expanding beyond their home markets, the scale and depth of their GNDM™ capability makes us their preferred strategic partner.

Strategic Acquisitions:

While primarily focusing on organic growth, TCS is also open to selective strategic acquisitions in order to penetrate select markets, strengthen verticals and enhance service offerings.

Non-linear Business Models:

TCS has been building non-linear growth businesses that can enable revenue growth without commensurate headcount growth. Non-linearity in the existing businesses comes from productivity-enhancing tools, frameworks, solution accelerators and managed services engagements.

In addition, TCS is pursuing three strategic initiatives for non-linear growth:

Software Products (Asset Leveraged Solutions) Platform-based BPO services (Process Clouds) iON – an IT-as-a-service solution for small and medium business

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