Comparative position of TCS

Strong vertical presence TCS derived nearly 60%of its revenues in 2003-04 from BFSI (banking ,financial services and insurance) and manufacturing. These two sector BFSI and manufacturing together account for 50% 0f global IT spends. In telecom also, the companys presence is quite strong. In each of these sectors, TCS is bigger than its largest domestic competitor. In revenue terms, the BFSI practice of TCS is about 35 % higher than that of Infosys; in manufacturing and in telecom vertical it is comparable to Wipro. Good spread of service offerings In terms of revenues in 2003-04, the package implementation segment took the lions share, as it is almost 1.5 times bigger than those of Infosys, Wipro and satyam. Over the next year or so, it will increasingly compete in large deals with multinational vendors in the area of system integration, infrastructure management and consulting. Client count and profile The success of TCS in scaling up its clients is evident from its $20-million and $50-million clients which, at 16 and 4 respectively, number more than its billion-dollar peers. However, Infosys and Wipro have been adding $1-million and $5-million clients faster than TCS over the past year. TCS has had a string of enduring relationships with clients. Names such as GE, P&O Nedlloyd fall in the 10-20 year bracket, while clients such as AIG, HP, Prudential, standard chartered and target fall in the 5-10-year bracket. Peer group comparison

Rank

Service provider

2008

2009

AGR

Share(%)2008 Share (%)2009

24 34 36

TCS WIPRO Infosys technologies

1669 1078 1243

1557 1074 1043

-6.7 -0.4 -16.1

0.6 0.4 0.5

0.7 0.5 0.4

Company Name TCS Infosys Wipro HCL Tech

Last Price 1,168.15 2,779.95 426.05 453.60

Change 21.85 26.50 0.20 -7.65

% Change 1.91 0.96 0.05 -1.66

Net (Rs. cr) 7,569.99 6,443.00 4,843.70 1,198.28

Profit

The 10 Most Profitable IT Companies Company Return Equity Grupo IUSACell Windstream Amazon.com BT Group Accenture Cosmote Telecom High Tech Computer Millicom Intl Cellular Tata Services VTech Holdings 42.1% 59.3% 53.6% 226.2% 94.0% 70.8% 67.2% 66.0% Mobile 61.1% on

Consultancy 46.1%

Tata Consultancy Services has been ranked among the leading global IT companies by global magazine Business Week. It has also been named as the only Indian entity to be listed among the world's top 10
2

most

profitable

firms.

With a return on equity of 46 per cent, TCS was the only Indian company to be ranked among the top 10 most profitable companies in the world.

Business Week in its '2007 Information Technology 100' listing has placed TCS on the 23rd position among the world's leading infotech companies.

According to the magazine, ever since TCS went public in 2004, the Mumbai-based company has been on a tear. It is growing rapidly, with a 41 per cent rise in revenues to $4.3 billion for the fiscal year ended March 31. Of all of the India tech-services outfits, TCS has the largest network of delivery centres outside India. A part of the Tata Group, India's largest industrial conglomerate, TCS has over 89,000 IT consultants in 47 countries.

Services provided by TCS

Tata Accounts Receivable and Billing System (TARABS) TCS offers you Tata Accounts Receivable and Billing System (TARABS). Our solution is equipped with an excellent customer service feature and a premium accounting functionality coupled with the ability to improve the cash flow. TCS Clin-e2e | Clinical Trial Management Solution This Clinical Trial Management Solution addresses all four phases of clinical trials. A secure online environment captures electronic data and integrates sites and labs with sponsors. Pharmaceutical companies are able to create customized Case Report Forms (CRF) and investigate clinical data more effectively as they successfully monitor progress of global trial sites, reduce time and cost of clinical trials, and ensure regulatory compliance with global frameworks. TCS Silicone Ambulatory ECG Device and Solution For assessing patients quickly and correctly to avert cardiac arrests, TCS Silicone provides realtime monitoring of heart condition via ECG (graphical data in Lead II configuration). The
3

information is then transmitted through any available radio frequency communication channel, enabling doctors to decide the immediate course of action. TCS Bio-informatics Solution Address the need for accessible databases and analytical applications that sort and organize the massive amounts of data required in this industry, enabling quick distribution of critical information to researchers. TCS Stand Alone Post Processor This highly flexible and customizable solution offers post- processing solutions for various CNC machines and their configurations. It can reduce the post processor development time up to 3040%. TCS Enterprise Integration and Control Environment: Certified as Powered by SAP NetWeaver. This rapid application development framework is used to develop advanced process control and process optimization applications and integrate them with the enterprise applications. This framework gives more than 70% productivity and shortens the development time by at least 60%. Solutions based upon this framework have been deployed at more than 35 plants.

TCS Smart Box (Next Generation Industrial Controller Development Framework) Jointly developed by TCS and A*STAR Singapore Institute of Manufacturing Technology (SIMTech), it is a futuristic industrial controller that brings high-level control closer to the actual production process. Its low-cost, open-architecture, which has an in-built Rapid Application Development (RAD) framework, helps Original Equipment Manufacturers (OEMs) create point solutions quickly and with ease. TCS Sevak - Self Service Terminals This self service terminal/kiosk platform allows customers to pay their bills using cash or credit cards. The terminals can operate in a stand-alone mode or can be connected to back-end servers for live update of transactions.

TCS to develop Gujarat unit

Tata consultancy services (TCS), Asias largest software services and consulting company, unveiled plans to develop a new facility at Infocity, Gandhinagar, Gujarat, to be spread over 35 acres in three phases. The first phase of global software development centre is expected to house 2,000 seats once fully commissioned. The new facility will augment the presence of TCS in the state of Gujarat, where the company is already working with the government as well as other public-sector firms and dairy co-operatives. The company has already recruited over 480 employees in the state during the current financial year.

When the Government of Gujarat adopted VAT from 1st April 2006, it decided to automate the VAT-related business processes at the same time. To digitize the entire project, the Gujarat Commission rate of Commercial Taxes turned to TCS to develop and implement a VAT Information System (VATIS) that was ecient and cost eective. TCS, with its deep expertise and proven track record in providing complex IT solutions for government needs, implemented the VATIS solution that has exceeded expectations and propelled the state to a leadership position in the use of automation for E-Government purposes TCS helps the Government of Gujarat revolutionize its state-wide health care services

The Health and Family Welfare Department (HFWD) of the Government of Gujarat, India realised that an integrated and effective tool was required for the timely monitoring of services and for health-related policy-making. It therefore conceptualized a Health Management and Information System (HMIS) to ensure better quality and monitoring of healthcare services using Information Communication and Technology (ICT) as an enabler to provide standardised clinical and diagnostic pathways, hospital functioning administration and integration of management information at the State level. The Gujarat Government chose TCS to develop and deploy a stateof-the-art healthcare solution for HFWD. The Health Management and Information System (HMIS) developed by TCS on Microsoft.

It provides the following benefits, amongst others: Helps administrators gain better control over the functioning of hospitals across the state, using decision support indicators Assists doctors and medical staff to improve health services with ready reference of patient data Provides workflow-enabled paperless processes and parameterized alarms and triggers during the patient treatment cycle

Activities done by TCS in Malaysia

TCS and Felda Prodata sign a Strategic Collaboration Tata Consultancy Services and Felda Prodata Systems Sdn Bhd (PRODATA) signed a collaboration agreement to jointly develop and deliver strategic Information Technology (IT) services and solutions to the Malaysian market. Both organizations will jointly identify opportunities as part of their go-to-market efforts to provide IT services and participate in tenders from government agencies. Deutsche Bank selects TCS for a major transformation initiative Tata Consultancy Services has been selected by Deutsche Bank as a strategic partner for its Production Management Transformation Initiative, within its Capital Markets business unit. TCS will deliver a global application service desk, service operations and all other IT Infrastructure Library (ITIL) services to the bank at locations across seven countries the USA, UK, Germany, Hungary, Philippines, Singapore and India. TCS Launches TCS BaNCS Core Banking Version 12 Tata Consultancy Services launched TCS BaNCS Core Banking Release version12.0 at the annual flagship event for banking and capital markets, SIBOS 2011, in Toronto. This version continues to build on the industrys leading functionality, flexibility and scalability for which the product has come to be associated globally. TCS Ranked Worlds 7th Greenest Company Tata Consultancy Services has been ranked as the worlds 7 th greenest company in Newsweeks Green Rankings 2011. In addition, TCS is the highest ranked Asiabased company and second
6

highest ranked globally in the Information Technology & Services company category. The Green Rankings focus on the largest publicly traded companies in America and worldwide. TCS BaNCS Core banking to transform IT Tata Consultancy Services has announced that Scotwest and Capital Credit Unions chose TCS BaNCS Core Banking as their IT platform to transform their infrastructure to address emerging opportunities in Community Banking in the United Kingdom. TCS positioned as a Leader in Insurance Applications Outsourcing Tata Consultancy Services (TCS) has recognized TCS as a leader in insurance domain knowledge and in the insurance applications outsourcing market by Everest Group, an advisory and research firm on global services in its November 2011 report. The evaluation was based on the five key dimensions of the groups proprietary PEAK Matrix: market success, scale, scope, domain investments and delivery footprint. On an aggregate basis, TCS received the highest rating out of all the service providers in the analysis of delivery capability and the second highest rating in the analysis of market success (based on transaction activity).

Nets, leading European payments firm, selects Tata Consultancy Services as strategic IT partner Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions firm, it has signed a multi-year contract with Nets, one of the largest payment cards, payment solutions and payment exchange information companies in Northern Europe.

Deutsche

Bank

selects

Tata

Consultancy Services

for major

transformation

initiative

Transformation initiative to reduce service complexity and enhance customer experience for the bank Five-year, multi-million dollar contract. Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions firm, announced that Deutsche Bank has selected the company as a strategic partner for their Production Management Transformation Initiative, within their Capital Markets Business Unit.

Development of IT in India
The Indian information technology (IT) industry has played a key role in putting India on the global map. The IT-BPO sector has become one of the most significant growth catalysts for the Indian economy. In addition to fuelling Indias economy, this industry is also positively influencing the lives of its people through an active direct and indirect contribution to various socio-economic parameters such as employment, standard of living and diversity. As per National Association of Software and Service Companies (NASSCOM), IT exports in business process outsourcing (BPO) services attained In the FY 2008-09, the domestic IT sector attained revenues worth US$ 24.3 billion as compared to US$ 23.1 billion in FY 2007-08, registering a growth of 5.4%. Entire software and services income. The IT sector is estimated to have grown by 19 per cent in the FY2011, clocking revenue of almost US$ 76 billion. The export revenues are estimated to have aggregated to US$ 59 billion in FY2011 and contributed 26 per cent as its share in total Indian exports (merchandise plus services), according to a research report IT-BPO Sector in India. NASSCOM said that the domestic IT-BPO revenues excluding hardware are expected to have grown at almost 16 per cent to reach US$ 17.35 billion in FY2011. The data centre services market in the country is forecast to grow at a compound annual growth rate of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by the end of 2011, according to research firm IDC India's report. The IDC India report stated that the overall India data centre services market in 2009 was estimated at US$ 1.39 billion. India will see its number of internet users triple to 237 million by 2015, from 81 million registered in September 2010, according to a report titled 'Internet's New bn', by the Boston Consulting Group (BCG). BCG said Internet penetration rate in India is expected to reach 19 per cent by 2015, up from the current seven per cent. Telecom Regulatory Authority of India (TRAI) is targeting a 10-fold increase in broadband subscribers to 100 million by 2014. The country has 10.29 million subscribers now. The penetration of the internet in rural areas will see an all time high in 2011. In a survey conducted by IMRB for the Internet and Mobile Association of India (IAMAI), the total number of active internet users in rural area will rise by 98 per cent to touch 24 million by the end of 2011
8

from 12.1 million in December 2010. The survey said that the claimed internet user category is also set to grow by 96 per cent to reach 29.9 million by December 2011 from 15.2 million in The countrys domestic market for business process outsourcing (BPO) is projected to grow over 23 per cent to touch US$ 1.4 billion in 2011, says global research group Gartner. In 2010, the domestic BPO market was worth US$ 1.1 billion. The firm predicts that the domestic BPO market would reach US$ 1.69 billion in 2012 and increase to US$ 2.47 billion by 2014. Analysts expect the top IT firms to grow between 23-27 per cent in the FY2012 on the back of more number of discretionary projects, improved pricing, and robust business volumes. Between April 2000 and February 2011, the computer software and hardware sector received cumulative foreign direct investment (FDI) of US$ 10,705 million, according to the Department of Industrial Policy and Promotion. Hardware may offer additional opportunities to Indian IT firms in the domestic market, and there are again important complementarities to consider. Low cost hardware specifically for the Indian market may speed the adoption of low-end versions of software . In 20042005, Andhra Pradesh was at the second position in the list of top information technology exporting states of India. The IT sector is expanding at a rate of 52.3% every year. The IT exports reached 19,000 crores ($4.5 billion) in 20062007, contributed to 14 per cent of total IT exports of the nation and ranked fourth in India.

India's IT industry (in USD bn)

Particulars

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

IT Services

10.4

13.5

17.8

23.5

31.0

- Exports

7.3

10.0

13.13

18.0

23.1

- Domestic

3.1

3.5

4.5

5.5

7.9

ITES-BPO
9

3.4

5.2

7.2

9.5

12.5

- Exports

3.1

4.6

6.3

8.4

10.9

- Domestic

0.3

0.6

0.9

1.1

1.6

Engineering services, R&D and Software products 2.9

3.9

5.3

6.5

8.6

- Exports

2.5

3.1

4.0

4.9

6.4

- Domestic

0.4

0.7

1.3

1.6

2.4

Hardware

5.0

5.9

7.0

8.5

12.0

- Exports

0.5

0.5

0.6

0.5

0.5

- Domestic

4.4

5.1

6.5

8.0

11.5

Total IT industry (including hardware)

21.6

28.4

37.4

48.0

64.

Development of IT in Malaysia

Market Overview Malaysian IT spending is expected to grow to U$5.2bn in 2011, from US$4.8bn in 2010. There will be increasingly attractive opportunities in the IT services area as the government implements measures to make Malaysia a regional services hub.

The National Broadband Initiative has the potential to boost demand across all IT market segments.

10

Industry Developments Malaysias 2011 budget contained a number of measures to boost the IT industry and help stimulate ICT adoption in the country.

Malaysia named cloud computing as the most important of its top 10 strategic technology priorities for 2010. The government hopes that adoption of cloud computing, building on the National Broadband Initiative, could accelerate Malaysias development into an advanced economy.

As of the end of 2010, it was reported that the government had distributed more than 100,000 net books and broadband subscriptions to students under the 1Malaysia National Broadband Initiative.

Competitive Landscape Over the next three years, from 2010-2012, notebook market leader Acer has targeted doubledigit growth as the economy recovers from recession. The company is also focused on improving its share in the professional segment, where it has only around a 10% share, compared with 18% worldwide. Acers aim is to double its share of the Malaysian commercial PC market within the next one to two years.

Growing investment in data centres and ICT infrastructure have helped to drive interest in cloud computing business models, which are now being actively promoted by vendors in the Malaysia market.

Software Malaysias addressable software market is expected to growth to US$857mn in 2011, consolidating a recovery in 2010 but businesses remain cautious and focused on ROI. By 2015, we forecast software spending rising healthily to US$1.3bn, with software CAGR for 2011-2015 in the region of 11%.

IT Services IT services spending, excluding telecommunications-related spending, is forecast to reach a value of US$1.6bn in 2011, after services was a bright spot for the IT market in 2010, remaining in positive growth territory.

11

The government has accounted for about 15% of IT spending in recent years. Telekom Malaysia was awarded a MYR11.31bn contract to roll out a high-speed broadband network. The government will invest MYR2.4bn and Telekom will foot the rest of the bill. This covers the first phase of the project that will be implemented over 10 years.

PROGRESS, 1996-1998 In the context of rapid global developments in science and technology, IT has become an increasingly critical enabling tool which has led to changes in the comparative advantage and competitiveness of economies worldwide. Information and Communications Technology (ICT) has brought about new changes to the management of science and technology, and in particular IT. As a result, it became imperative that the various sectors of the Malaysian economy undertake initiatives to gradually integrate new IT-based systems into existing work processes.

Investment in IT expanded at a rate of 8.4 per cent per annum during the review period, increasing from RM3,800 million in 1995 to RM4,840million in 1998. The increase was attributed in part, to a number of fiscally incentives introduced to promote the use of IT. These incentives included the removal of sales tax on computers and components, and the granting of accelerated capital allowance for expenses on computers and other IT equipment.

Utilization of IT by the Private Sector In terms of IT expenditure by sector, the manufacturing sector constituted the largest share and accounted for 17 per cent of total expenditure in 1998, this was followed by banking and finance with 14 percent. Other sectors that invested substantially in IT included the distributive trade, telecommunications, government as well as oil and gas. Of significance was the increase in the share of IT expenditure for home and personal use which increased more than four times from 2 per cent of total expenditure in1995 to 9 per cent in 1998. In the transportation sector, IT was utilized as a strategic business tool to improve the efficiency of operations. Utilization of IT in the Government Sector

12

During the review period, IT was used to enhance productivity and efficiency as well as improve the quality of services, particularly counter services. In this regard, a total of RM976.6 million was spent on the computerization programmes of the various departments and agencies. These involved the acquisition of hardware and software, telecommunications equipment, systems development and other value-added services. To coordinate and monitor the development and utilization of IT and Internet in the public sector, the Government IT and Internet Committee (JITIK) was established in February 1998 Development of the Local IT Industry For the software industry, domestic demand is estimated to increase from RM1.5 billion in 1997 to RM2.3 billion by the year 2000. The key services will include data centre management, systems integration and implementation, hardware and software maintenance, desktop management and applications maintenance as well as development of software for the contents industry. To facilitate the creation of more technopreneurs in the area of software technology, measures will be taken to develop local expertise through education and training, strategic alliances with international companies and accelerated transfer of technology.

13