Competitive analysis: TCS

Political:

 In 2007, Indian Government’s stable political environment and/or concentrated political

support on IT industry would have a huge impact on both domestic and global IT
Services industry.
 Foreign investment & tax policies in the IT sector provides favorable/competitive
advantage to Indian IT Services industry.
 Offshoring had shown a rapidly growth in the late 1990s and aerly 2000s and it became
highly politicized in the united states and western Europe.

Economic:

 Software Development is very labor intensive with personnel-related costs accounts up to

more than 70% of the cost.
 The exchange rate between USD and Indian Rupees plays an important role for Indian IT
Services industry as Indian IT Services’ revenues are largely earned in USD.
 Attrition rate of TCS is lower than other competitive company but it makes the staff stick
to the organization by providing increased compensation in terms of EVA based
incentive, extensive package of perks and welfare benefits.

Social:

 Over a period of time we had seen shortage of IT professionals in USA. However, the
availability of number of IT professionals in India remains sufficient. Also, a variety of
initiatives are adopted to address potential talent shortage.
 The U.S Department of Labor projected 25-50% increase in employment in most IT
related occupations between 2004 and 2014, and India’s large pool of talents can take
advantage of the current internal demand for IT Services.
 In 2005, India has the largest pool of talented professionals for offshore IT-ITES. The
projected demand in IT services would be appropriately meet by the graduates from the
Indian academic association.
Technology:

 Indian IT Services companies have acquired quality certifications- 48% of the world’s
CMM Level 5 software centers are located in India. While Offshoring was initially
motivated by cost and capacity considerations, quality has become a major selling point
as IT Services industry matured.
 The development of new IT technologies and business segments-Indian IT Services
companies do not limit their expertise on Custom Application Development and
Maintenance (CADM). They aggressively expand the range of IT Services offerings
including IT consulting, systems integration, and IT resource management.
 Technology innovation including SOA, Web Services, E-business and Ecommerce.

External Competition

IBM Infosys

Core competencies most valuable brand acting as Branding & Marketing

competitive advantage
Strategies Comprehensive innovation- Focus on offshoring services
driven portfolio
Position World’s largest IT firm India’s 2nd largest IT firm
Weakness Expensive, inflexible, IBM Small presence in India market
exclusive technologies

Legal

In market TCS had a reputation for conservative compensation policies and it matches the
industry standard of compensation

The firm runs on strict Tata principle rules and regulation. It assures the customers one global
service. The value of Tata Group was strict to this phrase “ Leadership with trust” as a driver of
operational excellence.
Environment