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COMPANY ANALYSIS OF TCS

INTRODUCTION:

The industry chosen is the IT Industry. The Indian services segment contributes the
highest portion to the GDP. The IT industry adds on a substantial portion to the services.

The IT Company chosen is Tata Consultancy Services Limited (TCS), the market leader.
TCS is Software services consulting company headquartered in Mumbai, India. It is the largest
provider of information technology and business process outsourcing services in Asia. TCS has
offices in 42 countries with more than 142 branches across the globe. The company is listed on
the National Stock Exchange and Bombay Stock Exchange of India. TCS is one of the operative
subsidiaries of one of India's largest and oldest conglomerate company, the Tata Group or Tata
Sons Limited and operates in all the six continents.

Products

TCS Bancs, Digital Certification Products, Healthcare Management Systems , Information

Technology Consulting, IT Services

Services

Outsourcing, BPO, Software Products

Vision

Global Top 10 by 2010

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.
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TCS- GROWTH PATH:

TCS was begun as the "Tata Computer Centre", for the company Tata Group whose main
business was to provide computer services to other group companies. F C Kohli was the first
general manager. JRD Tata was the first chairman, followed by Nani Palkhivala.

One of TCS' first assignments was to provide punched card services to a sister concern,
Tata Steel. It later bagged the country's first software project, the Inter-Branch 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. The
company pioneered the global delivery model for IT services with its first offshore client in
1974. 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.

In 1981, TCS set up India's first software research and development centre, 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 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 9 August 2004, TCS became a publicly listed company[14], much later than its rivals,
Infosys, Wipro and Mahindra Satyam.
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During 2005, TCS ventured into a new area for an Indian IT services company -
Bioinformatics. In 2008, the company went through an internal restructuring exercise that
executives claim would bring about agility to the organization.

TCS has been continuously making investments to open up new markets and services..
In 2008-09, the new growth markets grew at a rate of 16%.

The Company's vast pool of human capital is helping chart the Company's future
progress not only in terms of its business but also by its impact on the community. Over 50,000
hours of volunteering effort was expended by TCSers, in the past year. One area where
considerable progress was made has been in the area of corporate sustainability. The increased
environmental consciousness across the organisation has resulted in reduction in air travel, 8%
drop in electricity consumption, lower paper and printer cartridge utilisation. This coupled with
'green' buildings and 'green' technologies has helped reduce carbon footprint this year.

TCS BANCS from TCS Financial Solutions is a complete suite of business solutions
covering Core Banking, Compliance, Islamic Banking, Channels, Payments, Treasury, Corporate
Actions, Securities Trading, Securities Processing, Market Infrastructure, Private Banking,
Wealth Management and Insurance. Across 240 financial institutions in over 80 countries, TCS
BANCS drives customer growth, reduces total cost of ownership, enhances new product
development and enables banks, insurance and capital market clients to experience certainty.
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TCS- INNOVATION:

A pioneer in software R&D, TCS, has an innovative environment that offers research-

based solutions in leading-edge technologies that will help meet customer’s IT expectations
and support business objectives. The Innovation Strategy consists of: Research Segmentation,
Customers Expectations and Alignment (Research Themes).

GLOBAL NETWORK DELIVERY MODEL

The Global Network Delivery Model (GNDM) is a truly global network. GNDM is much
more than having an India centric delivery model with near-shore centres and is not about
setting up Offshore Development Centres (ODC) in different geographies. The GNDM enables
TCS’s delivery centres to collaborate on projects, leverage all assets, work on a ‘follow-the-sun
model’ if necessary, and above all, through their homogeneity in terms of quality, skills as well
as look-and-feel, give customers the same experience of certainty, irrespective of whether they
work with TCS in Chennai, China or Chile. The Company became the first organization in the
world to be certified enterprise-wide for ISO 9001- 2000, ISO27001:2005 and ISO 20000:2005 in
January 2007. Their customers can continue to experience the certainty of "high quality of
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service delivery", as they stay focused on continuous improvement of security, quality and
processes in an industry where technology changes occur frequently.

RECENT NEWS ABOUT TCS

 Leading Analyst Firm Positions TCS in the Leaders Quadrant for SAP ERP Implementation
Services, North America.
 Hilton Worldwide Signs Multi-Year Agreement with TCS.
 Leading Research Firm names TCS as leader in Global Banking Platforms report.
 Indian Bank selects TCS for its Financial Inclusion Solution project.
 Deutsche Bank implements TCS BaNCS as the core banking system for its Global
Transaction Banking business.
 Uttar Pradesh selects TCS for its State Data Center (SDC) project
 TCS opens BPO center in the Philippines.
 TCS BaNCS Accredited with SWIFT Ready 2010 Certification for Securities Settlement,
Corporate Actions and Payments.
 TCS steals a march over Infosys again
 TCS is among the 16 Indian companies named in Forbes' magazine's 2010 compilation of
the Asia-Pacific's 50 biggest listed companies.
This news adds to the attractiveness of the firm.

STOCKS PERFORMANCE of TCS:

 TCS has recorded a highly creditable performance in FY10 and has out-
performed its peers Infosys and Wipro on the volume growth front. This is a
factor that gives us confidence that the company will be able to maintain 18-20%
volume growth in FY11 as well in a year of an economic recovery.
 The leadership change at TCS (N Chandrasekaran took over as CEO and MD from
S Ramadorai) is also a positive factor for TCS.
 It has been able to drive revenues and enhance profitability in a year
characterised by significant headwinds to growth
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 . TCS' hiring targets are also fairly encouraging for FY11.

 Business initiatives such as the Diligenta platform are expected to add an
element of non-linear growth.
Hence the stocks performance for TCS is bright for FY11.

INVESTORS REVIEW:

As on Jan 28, 2011, Technical analyst has maintained 'buy' rating on Tata Consultancy
Services Limited stock with targets of Rs 1197 and 1208. According to analyst, the investors can
buy the stock with a stop loss of Rs 1185.

The share price has seen a 52-week high of Rs 1221 and a low of Rs 708 on BSE.Current
EPS & P/E ratio stood at 43.15 and 27.46 respectively.

TCS recorded an increase of 30% on y-o-y basis in its consolidated net profit for the
three month period ended December 2010 to Rs 23.70 billion.

PROBLEMS TO BE FOCUSED:
 Mounting revenue pressures
 Selectivity in projects
 Focus on specialization
 Efforts on Experimentation & Innovation
 Branding and Public Relations
 PROPEL – The Intervention:

Culture Building at TCS.

PROPEL was introduced as a revolutionary intervention with the dual objectives of

facilitating the exchange of ideas and helping in immediate problem solving, while also
encouraging bonding and self-development among and within teams. Value Cards at the Large
Relationship Value card for the relationship was fallout of the analysis of tensions existing in the
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four dimensions as represented by Voice of Customer, Strategy, Employee and Technology. A

tool called “Value Card” was used to analyze the problems faced by the relationship in relation
to these tensions and to arrive at workable solutions to the identified problems, within
designated timeframes.

CONCLUSION:

The heritage and the continued efforts of TCS has made it the market leader and it will
be beneficial for both the customers and the investors.

REFERENCES

 http://en.wikipedia.org/wiki/Tata_Consultancy_Services
 http://www.tcs.com/favicon.ico
 http://www.business-standard.com/india/email_page.php?autono=422194&amp
 http://twitter.com/moneycontrolcom
 http://www.tcs.com/analysts/Pages/default.aspx
 www.scribd.com%2Fdoc%2F23445740%2FTCS-tata-consultancy-service