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INDIAN IT MARKET Poised to become a US$ 225 billion industry by 2020, The IT-BPO sector has become one

ne of the most significant growth catalysts for the Indian economy.

he industry has played a significant role in transforming Indias image from a slow moving bureaucratic economy to a land of innovative entrepreneurs and a global player in providing world class technology solutions and business services, The 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 . 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.

Market share of it companies

8%

6%

6% 4% 5%

TCS Infos ys Wipr o

71%

Tata consulting services About the company: Tata Consultancy Services Limited (TCS) is the world-leading information technology consulting, services, and business process outsourcing organization that envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value.

It is the second-largest India-based provider of business process outsourcing services. TCS has been ranked #20 in the list of top companies of India, by Fortune India 500magazine. It is the largest technology service company in India by revenue and market capitalization. TCS is a part of one of Asia's largest conglomerates - the TATA Group - which, with its interests in Energy, Telecommunications, Financial Services, Chemicals, Engineering & Materials, provides us with a grounded understanding of specific business challenges facing global companies. Mission and Value Statements 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 Values Leading change, Integrity, Respect for the individuals, Excellence, Learning and Sharing TCS Figures of 2011

Revenue :-37928 crore Profit:-9068 crore Total Assets:-25037 crore Employees:-226751 TCS has 142 offices across over 47 countries and generates around 30 per cent of India's IT exports.

Product Portfolio IT service IT infrastructure services Enterprise Solutions

Consulting BPO Platform BPO solutions Business Intelligence and Performance Mgmt Engineering and Industrial services Small and Medium Business Assurance Service Cloud service Product :-Software TCS BaNCS TCS Technology products Other products Marketing mix The IT consulting and other services market is valued as the revenues accrued from provision of information technology and systems integration services, information technology consulting, and information management services. Product:Application Development and Maintenance a. Business Process Outsourcing b. E-Business c. Engineering and Industrial Services d. Infrastructure Services e. Quality and IT Process Consulting f. e-Security

Price:-Pricing is project based and also it is done according to the Onshore or Offshore or both proposals.

Place:-

a. Considering the location from where service is provided, the market can be classified into Onshore services and Off-shore services. b. Off-shore services are those services which are outsourced outside the home country. c. Offshore locations leverage their strength in availability of skilled talent at relatively lower cost to provide cost effective services. d. In Indian TCS had development centres and/or regional offices in the following Indian cities: Ahmedabad, Baroda, Bangalore, Bhubaneswar, Chennai, Coimbatore, Goa, Gurgaon, Guwahati, Kochi, Kolkata, Lucknow, Mumbai, Noida, Pune, Thiruvananthapuram, Jamshedpur, Hyderabad. Promotion:Company continue to explore ways in which the Internet can help improve the efficiencies and effectiveness of their service and product delivery. a. Physical Evidence:A multi-tiered technology infrastructure with an interconnected global development network providing better risk management and 24/7 coverage, a state-of-the-art telecoms network and global collaboration tools. b. With a software development specialist advice can be a real benefit for the activities of your company and a business model that can help in improving the system.

Process a. IT Services market can be segmented based on execution responsibility into Outsourced services and Captive Units (in-house). b. Independent service providers provide Outsourced services, undertaking delivery responsibility for a price. People a. TCS owe its success to the highly motivated and talented staff. Its recruitment division picks the crme-de-la-crme from premier universities, management and engineering institutes in India. They put them through rigorous training programs to hone their entrepreneurial skills and impart comprehensive product knowledge.

b. Strategic IT Effectiveness (SITE) experts. c. Experienced professionals with bold, value-creating approaches to IT.

Swot analysis
Strengths 1. Extensive global reach 2. Strong financial performance 3. Employee management skills 4. Innovation Labs Weakness 1. Significant exposure to financial service markets. 2. Needs to strengthen other service lines besides application, development and maintenance (ADM) that accounts for nearly 48 per cent of its revenues. Opportunity 1. Focus on SMB segment. 2. Growth in world wide IT industry. 3. Focus on high end business and IT consulting. 4. Expanding operations in country like china. Threats 1. Increasing employee cost. 2. Intense competition between Infosys,Wipro,Mahindra Satyam,Acccenture ,IBM etc. 3. Increased competition from low wage countries like china and indonesia etc.

Innovations by TCS
The TCS Innovations Advantage

A pioneer in software R&D, TCS today has an innovation ecosystem that offers research-based solutions in leading-edge technologies to meet customer expectations from IT and to support the Business objectives . Innovation Strategy: Research Segmentation, Customers Expectations & Alignment (Research Themes). Innovation Ecosystem: TCS Innovation Labs, TCS Co-Innovation Network (COIN) , Incubation Group. Innovation Events: Innovation Days help key customers and TCS researchers to collaborate on research towards specific solutions. Innovations Forums held annually in UK and the USA serve as confluences of thought leaders, researchers from academia, start-ups and customers, bringing value through shared experiences and offering a preview of technologies and solutions of the coming decade. Innovation Culture: Awards for young innovators, coding competitions, research workshops and conferences where scientists of international participate create a fertile environment for TCSers, enabling them to think creatively around customer solutions.

Research Segmentation:

Aligned to the varied requirements TCS has a portfolio approach to innovation. It segments research into three categories: 1. Sustaining or Derivative Innovation: Innovations that offer improvements on current offerings in current markets 2. Platform Innovations: Innovations that help customers move to adjacent technologies and create additional capabilities 3. Disruptive Innovations: Innovations that are game changers and bring radical changes to current markets and capabilities. TCS invests in research in adjacent and futuristic technologies and has a metrics driven approach to innovation. Using an Open and Collaborative framework it connects customers to the best of breed entities in the technology landscape and enables you to gain competitive advantage.

Outcome based Research Themes:


TCS Innovations focus on typical jobs/outcomes customers expect. Samples of TCS R&D offerings that address your expectations from IT: a. To Increase Operational Efficiency and Productivity: software tools, performance tools etc. b. To Promote Business Agility: SaaS platforms, Agile enterprise architecture, Decision Support Systems etc c. To Simplify and Transform: Virtualization, Cloud computing, Managed Evolution of Infrastructure etc d. To Manage Enterprise Risk and Compliance: Smart Cards, Copyright protection offerings etc e. To Enable Understanding of Markets and Customers: Knowledge Discovery and Advertising platform Solutions

TCS innovation has been widely recognized on the global stage. TCS Mobile Agro Advisory Solution mkrishi won the Wall Street Journal Innovation Technology Award for 2008 in the wireless category and the Golden Peacock Innovation Award. US-based publication Infoworld ranked TCS Global Certainty IdeaStorm in its list of Top 100 Innovative IT Projects. Many of the Companys researchers and Scientists have won individual laurels and awards.

TCS Innovation Labs


TCS' flagship research centre, TCS Innovation Labs - TRDDC was established in 1981, when IT had hardly emerged as an industry. Today TCS has a global network of labs that provide an environment for sophisticated IT research in leading edge technologies as well as in various domains. Their labs connect to academic research centers of international repute on collaborative research projects. Internships, learning programmes and workshops with academia also contribute to the vibrant interaction Their labs are customer aligned and metrics driven. A number of innovative solutions emerging from the labs have won national and international awards

Customer Relationship Management (CRM)


TCS helps organizations devise and implement CRM strategies and solutions that become the backbone of their customer acquisition and retention strategies, and helping them foster loyal, profitable customer relationships.

TCS again ranked first with 83% (versus an industry average of 64%), delivering on its promise of Experience Certainty.

What does it take to have satisfied customers?


In any industry, it takes a combination of both hard and soft factors to achieve high levels of customer satisfaction. The hard factors are quality of delivery, and the soft factors are quality of experience.

Challenges faced by TCS to retain customers Deliver on time, on budget, meeting business requirements, and with a defect-free solution (the hard factors, the quality of delivery)? And it should flexible to meet changing business demands They must be transparent in its operations and pricing, eager to serve even outside the contract, humble and open to new ideas, and willing to collaborate with clients and third-parties, and take ownership of issues beyond contractual obligations (the soft factors, the quality of experience)?. Capacity management Increased agility, productivity and profits Reduced costs and risks in todays diverse IT environments Unified customer data across multiple business units and diverse functional systems, in order to provide reliable sources of customer information across enterprises More efficient service, higher customer satisfaction, and reduced churn Enhanced customer experience and increased revenue through improved crossand up-selling Superior customer experience assured at every touch point leading to enhanced customer loyalty and increased brand image.

a. b. c. d. e. f. g. h. i.

Attrition rate management


The country's largest software exporter Tata Consultancy Services expects to rein in attrition to a level below 14 per cent by the current fiscal end, a top company official has indicated. For the first quarter ended June 30, the Tata group company had a reported churn rate of 14.8 per cent. It may be recalled that till few years ago TCS' churn rate used to be in the range of 11-12 per cent.

By the year-end, attrition will be in the range of 13-14 per centthey are doing further interventions to bring attrition further down but it will take a long time before they reach levels of 11-12 per cent, said Mr Ajoy Mukherjee, Vice-President, Head, Global Human Resources, TCS.
RETENTION BONUSES

The company has put in place measures to ensure job rotation opportunities for staff. It also dishes out retention bonuses on a selective basis to lateral staffers who come on board TCS. "Given the

strong deal momentum and continuing ramp ups To retain their emplyees
According to Mr Mukherjee, Q1 is when several employees go in for further studies. Secondly, the appraisal process which happened during the quarter would cause employees that are not happy with their ratings to look out for external opportunities. These two factors will be at play till the middle of Q2after that we will see attrition tapering off, Mr Mukherjee told Business Line. Moreover, the industry is back to the days of hyper growth and hence there is tremendous demand for trained talent. According to a TCS employee that Business Line spoke to, the company's focus on increasing offshore revenues, coupled with its strategy of engaging temporary staffers for onsite assignments is de-motivating employees to stay put. In any IT company, staffers look forward to potential spells stints in overseas geographies at client locations. However, TCS has been increasingly using the services of business associates or temporary staffers in the US to tide over the delays in getting H1B visas and the increased rejection rates for such work permits.
BIZ ASSOCIATE RATIO

If I look at the business associate to employee ratio, we generally keep it around 4-5 per cent. However, that percentage has slightly gone up in the US, said Mr Mukherjee. These business associates or temporary workers are generally local employees who come through temporary staffing companies. Their services are availed when there is a dearth of specific skill sets or when there are immediate ramp up requirements. Engaging business associates is not cheap at allit is not about the cost but the need to have people when required since we do not maintain a bench in the US. If my project is in a stage where I need to have people or else my delivery will suffer, the only way you can do it faster is through business associates, said Mr Mukherjee.