Analysis of Strategy and

Company Strength Of
TCS

BY
Section 2 Group 10
Name FT number

Akash Pathak FT232057

Subhajyoti Mukhopadhyay FT232061

Baidik Chatterjee FT232017

Debapriya Sarkar FT232035

Sriram S FT232059

Ketan Sharma FT232040

Structure of the Industry:
TCS mainly belongs to IT services company and it represents the Tata Group which is famous
for its strong philanthropist philosophy and is in the business for more than 50 years now. IT
industry is one of the most significant industries in India.
The industry structure in the IT sector has four major categories. These are-
 IT services
 IT-enabled services
 Software products
 Hardware
A significant portion of India's IT business is made up of IT services. Client, server, and web-
based services are all included in IT services. Opportunities abound in the consulting,
management, internet, and application maintenance segments of the IT services industry. The
major users of IT services are-
 Govt.
 Banking, Insurance and Financial Services (BFSI)
 Retail and Distribution
 Manufacturing
 Life Sciences
This industry also deals in ITES (IT enabled Services). The typical services which come under
ITES are Customer interaction in call centres, Backoffice services, Revenue accounting, Data
entry and conversion, HR services, data research, Global Information Security etc.
Apart from this the companies also export software products which accounts for huge revenue.
The Indian software business increased by more than five times, from 2630 crores to 13200
crores, between 1996-1997 and 2002-2003. Software and service exports from India increased by
over 12 times during the same time period.

How Strong the company is positioned in the industry setting:

Tata Consultancy service is the Largest IT company in India in terms of Revenue and market
cap. It was established in the year 1957 by JRD Tata and FC Kohli. The market cap of TCS is Rs
13.5 lakh Cr. And revenue in FY 2022 is ₹52,758 crore. It is leading the IT market in India for a
long time now. Globally it is ranked in the number 1 position before Accenture.
When it comes to the Indian market other competitions are:
1) Infosys:
 Revenue: Rs 1,02,673 Cr
 Market Cap: Rs 282,028 Cr.
2) Cognizant Technology Solutions (CTS)
  Revenue: 19.3 billion USD
 Market Cap: 27.35 billion USD
3) HCL Technologies
 Revenue: 76,306 Cr INR
 Market Cap: 153370 Cr INR
4) Wipro Limited
 Revenue: 64,338 Cr
 Market cap: 153,043 Cr

So we can clearly see that TCS is very strongly positioned not only in the Indian IT market but
global IT industry and it has been an industry leader.

How do you rate this company in terms of Business Strength:

The strengths of TATA Consultancy Services (TCS) look at the key aspects of its business which
give it a competitive advantage in the market The strength of a brand can be attributed to a
variety of things, such as its financial standing, skilled personnel, the distinctiveness of its
products, and intangible assets like brand value.
 Huge Customer Base: TCS provides clients with services in a range of sectors, including
media and entertainment, banking, financial services, retail, and telecommunications. The
risks associated with over-dependence on a single market or industry are diluted by
exposure to many firms. TCS also provides passport services to the Indian government
and supports IRCTC as well.
 Global Footprints: TCS's worldwide footprint, which presently includes the North
American, United Kingdom, African, European, and Asia-Pacific regions, represents its
presence across many geographies in which the business has worked to achieve as much
coverage as possible. A diverse geographic presence lowers corporate risk and gives TCS
a positive worldwide reputation.
 Strategic Partnership: TCS developed solid relationships with international businesses all
around the world. It was compatible with some industry heavyweights including
Amazon, Adobe, Dell, Bosch, HP, etc. Through these agreements, TCS provides
technologically sound and creative commercial and strategic solutions.
 Strong Service Portfolio: Application development and maintenance of Business Process
Services (BPS), IT infrastructures, business intelligence, and other services are all part of
TCS's robust and well-rounded service portfolio. A strong and broad portfolio is attracted
from a variety of commercial clients.
 Good Returns on Capex: TCS has a solid track record of completing new projects
successfully, and by creating new revenue sources, it has produced good returns on
capital investments.
  Strong Brand Value of Tata: It receives strong brand support from the Tata brand. Tata is
historically famous for its strong brand value and ethics. It gives it immense backing
from other sister concerns as well.
 Highly Skilled Workforce: TCS has a highly skilled workforce through successful
training and learning programs. TCS has a proven track record of successfully
completing new projects, and by establishing new revenue streams, it has generated
respectable returns on capital expenditures.
What are the Capability Gaps of TCS:
The capability gaps of TCS are as follows:
 Immigration and its Limitations: Due to immigration laws, rising H-1B visa fees, and
shifting political conditions in the US, Indian IT companies are predicted to suffer as a
result of cost increases that will negatively affect profitability.
 High Attrition Rate: The high rate of turnover in the Indian IT sector affects both the
company's reputation and the cost of training new hires in leadership and skill
development.
 Skill Gaps: TCS is not putting enough fruitful efforts to train the workforce in the latest
technologies. This skill gap can turn out to be a major issue in near future.
 Product mindset: TCS has built its business from a services delivery mindset. But to
move its business to the next level it has to grow in product domains as well. If enough
investment is not done in the product market the growth in the service sector can
stagnate.
How Does it Fill the Capability Gaps:
 Digital Transformation: Because the entire world is digital, business dynamics are
changing the digital economy. TCS is concentrating on digital transformation and
providing digital solutions. TCS may anticipate increased investment in technology for
digital transformation.
 Increasing Demand for Cloud-Based Computing: Fast internet connectivity and digital
technology have emerged. In reality, the cost of cloud services will rise at a CAGR of
19% over the next five years. The world is moving toward cloud-based services. Because
TCS has a robust cloud-based infrastructure, it is prepared to take advantage of the
demand that is being created.
 Solutions from machine to machine (M2M): Both wireless and cable communications
systems are made possible by M2M solutions. Future prospects for M2M solutions are
promising, and substantial profits are anticipated. TCS offers a full suite of M2M services
that allow for the exploitation of the demand for M2M solutions.
 Skill Gap Mitigation: TCS has collaborated with many of the leading skill-building
organizations in order to mitigate the skill gaps and build strong skills across the
organization.
 Strategic Partnerships: TCS is constantly committed to preserving its strategic
partnerships with numerous international technology vendors. These relationships are
 divided into different categories, including alliance partners, service providers,
customers, and suppliers. TCS has been able to keep an integrated approach because of
its partnerships with multinational technology vendors. With the aim of leveraging each
other's research and development strengths, TCS formed a joint venture with these
vendors.
 Acquisition Strategy: TCS is acquiring a lot of small product-based companies in order to
restructure its weak product wing. This has the potential to generate a solid business in
recent times. A prime example of this kind of strategic acquisition is ‘TCS Ignio®’.
 Controlling Attrition Rate: TCS is still recruiting in high numbers to tackle the high
attrition rate, but the attrition rate can only be checked by restructuring the salary scheme.
They need to pay the employees per with industry-standard to keep them.
The journey of TCS was not always very smooth. They had to struggle a lot in order to reach the
apex of the IT industry. They have levelled up themselves but challenges are present at every
level. They need to put extra effort to mitigate the challenges and time will tell how well they
have overcome these challenges.

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