2. INTRODUCTION
The advent of the internet, email and lately, e-commerce increased the need for the IT industry
Customer centric market, need for service at fingertips
Customer service and break-through technology and maintenance for companies is provided by
the IT industry
Leading contributor to the GDP in India
Major exporter in India
Provides employment to one third of the population.
Firm grip on the Indian market
3. PEST ANALYSIS
POLITICAL
-Lowering of corporate tax
-Digital India
-IT Act, 2000
-Entry into SEZ
-Change in government has little impact
ECONOMIC
-Inflow of foreign currency
-Affected by Rupee appreciation
-Increasing usage of domestic products and
services boosting revenue
SOCIAL
-Indian labour is cheap and skilled
-Lot of educational institutes and universities
-Good demographic dividend
-Second highest English speaking population
TECHNOLOGICAL
-Digitalization of business benefits the IT
industry
-Quest to prevent technological obsolescence
4. COMPANY DESCRIPTION
Tata Consulting Services (TCS) is an Indian multinational IT and consulting firm founded in the
year 1968 by J.R.D Tata providing business solutions to their clients to transform their digital
business.
Founded by Jamshedji Tata and currently headed by Cyrus Mistry having a revenue of about 7.7
lakh crore
Mission
To help customers achieve their business objectives by providing innovative, best-in-class
consulting, IT solutions and services.
Values
Leading change, Integrity, Respect for the individual, Excellence, Learning and sharing.
Operates in 44 countries and headquartered in Mumbai, Maharashtra
Natarajan Chandrasekaran - CEO & MD
Rajesh Gopinathan - CFO
Vice President - Ajoyendra Mukherjee heads the Global HR department
5. SHAREHOLDING PATTERN
Indian corporate bodies
73.81%
Indian Trusts
0.08%
Mutual funds
0.94%
Financial Institutions
0.04%
Central/State Government
0.02%
Insurance companies
3.81%
FII
16.84%
Individuals
4.26%
Other trusts
0.2%
6. FINANCIAL PERFORMANCE AND COMPETITORS
India’s leading IT company in terms of revenue and manpower
Major clients - GE, JPMC, Wallmart, RBS, Cisco, ING to name a few
Manpower of more than three lakh employees as of April 2015. One out of three employees in
TCS is a female and it has about 8 percent employees of foreign origin
Revenue, as of the previous fiscal year, was about 15.5 billion USD*
Profit of more than 3 billion USD in the same year*
The operating income was about 3.7 billion USD for the said year*
Major competitors - Infosys Ltd., Wipro, HCL, Tech Mahindra, Mphasis
Closest competitor in the Indian market is Infosys, with a revenue of more than 8.5 billion USD*
The Quarter 1 result for the year 2015-16 reported a revenue growth of about 3.5 percent*
*Source: https://en.wikipedia.org/wiki/Tata_Consultancy_Services
8. SWOT ANALYSIS
STRENGTHS
• Steady performance in market so far
• Extensive global research
• Strengthened BPO
• Strong presence in Indian as well as global
market.
WEAKNESSES
• Large number of manpower
• Absence of operation in South America
OPPORTUNITIES
• Growing Indian and global IT market
• Changing consumption of Indian consumer
• Age of innovation
• Increased operation in South American and
Chinese markets
THREATS
• Increasing salary for the huge number of
manpower
• Competition from low cost Chinese IT firms.
• Change in value of dollar affects revenue.
• Growth of foreign firms.
• Their clients are setting offices in India (e.g.
BT)
9. COMPANY STRATEGY
Increase their verticals by entering more markets and increasing their client list
Deliberate effort to shift from the saturating European and US markets and entering into South
American and Chinese market
More focus on customer centricity and strategic acquisitions
Offices and research centers are being set up around the globe to increase their global presence
and to study the global market
Recent acquisitions like Alti SA, TKS – Teknosoft, TCS Management, Comicrom , SITAR
Their operations are classified as:
Existing major markets
Growing markets
Organizational infrastructure
Industry solutions for domain specific solutions
Source: http://www.moneycontrol.com/company-facts/tataconsultancyservices/shareholding-pattern/TCS
Majority of the shares of TCS are owned by Indian corporate bodies of the Tata group. About three fourth of the shares are owned by them. Of the remaining 25 percent, a little less than 20 percent is owned by FIIs, mutual fund, government, insurance and other financial institutions while the rest is owned by individuals.
