PROJECT REPORT ON

TATA CONSULTANCY SERVICES

SUBMITTED TO- SRINIVASAN SIR

SUBMITTED BY- AMIT AGARWAL

ROLL NO – 02
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 TATA CONSULTANCY SERVICES

TCS
As the software services industry continues its march towards "scale", TCS
with its numerous strengths is well-positioned to capitalise on the offshoring
wave. As it has grown in size and scale, TCS has broadbased its software
operations from India by setting up software development centres in other
low-cost geographies such as China, Brazil and Uruguay.

Vision
To create value by leveraging our co-innovation network in a manner that
has an impact on the customer ecosystem.

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 us”

Introduction

At TCS, it means achieving real business results that allow you to transform,
and not just maintain, your operations. Our IT services, business solutions,
and outsourcing bring you a level of certainty that no other competitor can
match.
You'll experience requirements that are met on-time, within budget, and
with high quality; greater efficiency and responsiveness to your business;
and the ability to shift investment to strategic initiatives rather than tactical
functions.
TCS' Global Network Delivery Mode is the engine that allows us to provide
reliable, scalable and cost effective delivery of services and solutions. This
time tested model has enabled us to achieve client satisfaction ratings of
89% for meeting quality expectations and an average budget variation on
projects of just 3% -- both figures far better than industry norms.
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TCS' Global Network Delivery Mode enables our clients to:
Choose a sourcing strategy best suited to their most important business
considerations, e.g., cost optimization, cultural alignment, location
proximity, language capabilities or risk-mitigation. Be assured of the highest
quality of service delivery regardless of the mix of services, technologies,
and locations.
Lower the Total Cost of Ownership (TCO) of Information Technology by
managing different service streams -- such as Consulting, IT Services, IT
Infrastructure Services, etc. -- through a unified delivery framework. All of
TCS' processes and infrastructure have been developed from the ground up
-- as opposed to being cobbled together over time.
When you become TCS client, here's just a sampling of what TCS do for you:
• Identify and develop target markets
• Provide professional oversight for sponsorships, product testing and
placement and corporate image maintenance in local markets
• Plan cost-effect strategies for both internal communication and on the
world-wide-web
• Develop all of your printed materials, videos and web sites – including
Intranet capabilities such as on-line databases, business materials and
vendor or third-party communications
• Prepare community-oriented campaigns to identify a wide range of
promotional opportunities for product placement, test marketing or market
introduction
• Coordinate your identity branding to ensure that all materials communicate
the same message and appeal
• Provide effective, attention-getting RFPs (Request for Proposals) and
specific contracting with third-party vendors
• Ensure that you receive our cumulative experience and wide range of
networking opportunities to help you grow and succeed.

History of TCS
Tata Consultancy Services was established in the year 1968. TCS is
considered a pioneer in the Indian IT industry. Despite unfavorable
government regulations, like the License Raj, the company succeeded in
establishing the Indian IT Industry. It began as the "Tata Computer Centre",
a division of the Tata Group, whose main business was to provide computer
services to other group companies. F C Kohli was its first General Manager.
The legendary JRD Tata was its first Chairman and was followed by
luminaries such as Nani Palkhivala. One of TCS' first assignments was to
provide punch card services to a sister concern, Tata Steel (then TISCO). It
later bagged the country's first software project, the Inter-Branch

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Reconciliation System (IBRS) for the Central Bank of India. It also provided
bureau services to Unit Trust of India, thus becoming one of the first
companies to offer BPO services. In the early 1970s, Tata Consultancy
Services started exporting its services. TCS's first international order came
from Burroughs, one of the first business computer manufacturers. TCS was
assigned to write code for the Burroughs machines for several US-based
clients

This experience also helped TCS bag its first onsite project - the Institutional
Group & Information Company (IGIC), a data centre for ten banks, which
catered to two million customers in the US, assigned TCS the task of
maintaining and upgrading its computer systems. In 1981, TCS set up
India's first software research and development center, the Tata Research
Development and Design Center (TRDDC). The first client-dedicated offshore
development center was set up for Compaq (then Tandem) in 1985.

In 1989, TCS delivered an electronic depository and trading system called

SECOM for SIS SegaInterSettle, Switzerland. It was by far the most complex
project undertaken by an Indian IT company. TCS followed this up with
System X for the Canadian Depository System and also automated the
Johannesburg Stock Exchange (JSE). TCS associated with a Swiss partner,
TKS Teknosoft, which it later acquired. In the early 1990s, the Indian IT
outsourcing industry grew tremendously due to the Y2K bug and the launch
of a unified European currency, Euro. TCS pioneered the factory model for
Y2K conversion and developed software tools which automated the
conversion process and enabled third-party developers and clients to make
use of it. In 1999, TCS saw outsourcing opportunity in E-Commerce and
related solutions and set up its E-Business division with ten people. By 2004,
E-Business was contributing half a billion dollars (US) to TCS. On 9th August
2004, TCS became a publicly listed company, much later than its rivals,
Infosys, Wipro and Satyam. By 2004, E-Business was contributing half a
billion dollars (US) to TCS. During 2005, TCS ventured into a new area for
an Indian IT services company - Bioinformatics. During the recent couple of
years TCS has been on the growth of progress. Both nationally and
internationally TCS is recognised as the higly respected IT company and has
surely put India on the world’s IT map large and clear. In 2008, TCS
saw outsourcing opportunity in E-Commerce and related solutions and set up
its E-Business division with ten people. In 2008, the company went through

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an internal restructuring exercise that executives claim would bring about
agility to the organization.

Major Competitors are :-

• WIPRO
• INFOSYS
• SATYAM
• HCL
• IBM Global Services

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 SWOT Analysis of TCS

Strength

• It's highly professionally managed IT consulting and services company

under the belt of TATA.
• Company has performed consistent year on year with weak economy
conditions of world.
• Company has capabilities to deliver new as well as legacy application. It is
in space of services as well as products and high value chain consulting.
• It has fragmented IT services and SDLC cycle into minute grains such as
S/w testing and grown that business to more than 250million USD. This is
the testimonial of efficient management.
• It is the only company initiating Earned value based profit center for
evaluating their performance. HLL is the first company to do so.
• IT is the only company that has survived and surprised investors with its
fixed cost Project delivery model and still making phenomenal profit despite
overloading the project with 10 t o15 % in terms of resources.
• Part of the Tata group, which helps it gets more international business.
Cases in point: the $1.2-billion Nielsen deal, Ferrari, and now Jaguar-Land
Rover (bought over by the Tata group)

Weakness
• Lack of scale compared to global competitors like IBM, HP (which bought
EDS), and Accenture.
• Needs to establish a track record when it comes to large deals Consulting
accounts for less than 4 per cent of global revenues; IBM, Accenture score
on this count.
• Needs to strengthen other service lines besides application, development
and maintenance (ADM) that accounts for nearly 48 per cent of its revenues.
• Man power strength is more than 10,000 employees and thus, it is
challenging to get personalized career development.
• Bad real estate
• Limited Product Line

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Opportunities
• Change in consumer lifestyles
• Acquisitions
• Available Governmental support
• Available technological innovations
• Growth of the industry of operations
• Decrease in taxation
• Entering niche markets
• Merger or takeover
• Strategic alliances & joint ventures

Threats
• Financial slowdown, slowing US economy.
• Labour challenges, globally.
• Competition from foreign markets
• Innovative products/services of competitors
• Changing technology
• New competitors entering the market

PEST ANALYSIS

Political
• Political stability: Indian political structure is considered Stable enough
expect the fact that there is a fear of hung Parliament (no clear majority). -
Positive
• U.S. government has declared that U.S companies that Political outsource
IT work to other locations other than
• U.S. will not get tax benefit. - Negative
• Government owned companies and PSUs have decided to Give more IT
projects to Indian IT companies. - Positive
• Terrorist attack or war. – Negative
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Economical
• Global IT spending (demand). (–ve)
• Domestic IT Spending (Demand): Domestic Market grow by 20% & reach
approx USD 20 billion in 2008-09 Nasscom (+VE).
• Currency Fluctuation (-ve)
• Real Estate Prices: Decline in real estate prices has resulted reducing the
rental expenditure (+ve).
• Attrition: Due to recession, the layoffs and job-cuts have resulted in low
attrition rate (+ve).
• Economic attractiveness: Due to cost advantage and other factors (+ve)

Social
• Language Spoken: English is widely spoken language in India. English
medium is the most accepted medium of education.(+ve)
• Education: Large number of technical institutes and universities over the
countries provide IT education. (+ve)
• Working age population. (+ve)

Technological
• Telephony (+ve)
• India has the world lowest call rates
• Expected to have total subscribers base of about 500 million by 2010.
• India has the second largest telephone network after china.
• Enterprise telephone services, 3G, Wi-max, VPN, poised to
• grow.

• Internet Backbone: Due to IT revolution in 90’s india is well connected

with undersea optical cables. (+ve)
New IT Technologies: Technologies like SOA, web 2.0, High definition
content, grid computing, and innovation in low cost technologies is
presenting new challenges & opportunities for Indian IT industry.(+ve)

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PORTER’S FIVE FORCES
Today's business environment is extremely competitive and in economics
parlance where perfect competition exists, the profits of the firms operating
in that industry will become zero.

However, this is not possible because, firstly no company is a price taker

(i.e. no company will operate where profits are zero).

Secondly, they strive to create a competitive advantage to thrive in the

competitive scenario. Michael Porter, considered to be one of the foremost
gurus' of management, developed the famous five-force model, which
influences an industry.

In this REPORT, we apply this model for the Indian IT industry.

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