COMPANY ANALYSIS
- Prathik Shetty
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
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
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
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%
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
PAST PERFORMANCE
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)
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
REFERENCES
 https://en.wikipedia.org/wiki/Information_technology_in_India
 https://en.wikipedia.org/wiki/Tata_Consultancy_Services
 http://www.tata.com/
 http://www.tcs.com/worldwide/india/locations/office-locations/Pages/default.aspx
 https://en.wikipedia.org/wiki/Digital_India
 http://www.slideshare.net/
 http://www.tcs.com/
 http://www.tata.com/htm/Group_Investor_GroupFinancials.htm
 http://www.moneycontrol.com/company-facts/tataconsultancyservices/shareholding-pattern/TCS
 http://economictimes.indiatimes.com/markets/stocks/earnings/infosys-beats-tata-consultancy-services-in-
revenue-volume-and-growth-in-north-america-in-q1/articleshow/48154758.cms
 http://www.moneycontrol.com/financials/tataconsultancyservices/financial-graphs/operating-profit-ebitda-
percentage/TCS
TCS_CompanyAnalysis

TCS_CompanyAnalysis

  • 1.
  • 2.
    INTRODUCTION  The adventof 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 ofcorporate 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  TataConsulting 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 corporatebodies 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 ANDCOMPETITORS  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
  • 7.
  • 8.
    SWOT ANALYSIS STRENGTHS • Steadyperformance 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  Increasetheir 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
  • 10.
    REFERENCES  https://en.wikipedia.org/wiki/Information_technology_in_India  https://en.wikipedia.org/wiki/Tata_Consultancy_Services http://www.tata.com/  http://www.tcs.com/worldwide/india/locations/office-locations/Pages/default.aspx  https://en.wikipedia.org/wiki/Digital_India  http://www.slideshare.net/  http://www.tcs.com/  http://www.tata.com/htm/Group_Investor_GroupFinancials.htm  http://www.moneycontrol.com/company-facts/tataconsultancyservices/shareholding-pattern/TCS  http://economictimes.indiatimes.com/markets/stocks/earnings/infosys-beats-tata-consultancy-services-in- revenue-volume-and-growth-in-north-america-in-q1/articleshow/48154758.cms  http://www.moneycontrol.com/financials/tataconsultancyservices/financial-graphs/operating-profit-ebitda- percentage/TCS

Editor's Notes

  • #6 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.
  • #8 Source: http://www.moneycontrol.com/financials/tataconsultancyservices/financial-graphs/operating-profit-ebitda-percentage/TCS