Summer Internship and Industry Analysis (SIIP)

At

Tata Consultancy Services

Report Submitted to
Vidyasagar University

By

Name: BIPLAB GHOSH

Roll No: VU /PG/503/24/09/04-IS 0092

Institute: Bengal Institute of Business Studies

Registration No:

Company Name: Tata Consultancy Services

This Project is Submitted for the Partial Fulfilment of a Master of

Business Administration from Vidyasagar University

PREFACE

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The report has been prepared as a part of the Summer Internship Programmed
(SIP), as a part of the MBA. The report is prepared in the view to include all the
details regarding the project that I carried out.

The advent of the digital era has ushered in an unprecedented volume of data,
which continues to grow at an exponential rate. Organizations across various
sectors are increasingly relying on data to inform their strategic decisions,
optimize operations, and gain competitive advantages. In this context, Business
Intelligence (BI) tools have emerged as indispensable assets for modern
enterprises. These tools enable the collection, integration, analysis, and
presentation of business information, transforming raw data into actionable
insights.

This report, titled "Study and Analysis of Business Intelligence Tools," aims to
explore the capabilities, applications, and impact of BI tools on organizational
performance. The study delves into the functionalities of leading BI tools,
examining their strengths, weaknesses, and suitability for different business
scenarios. Furthermore, it analyzes the trends and innovations shaping the BI
landscape, providing a comprehensive understanding of how these tools can be
leveraged to drive data-driven decision-making.

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3
 ACKNOWLEDGMENT

The satisfaction and euphoria that accompany the successful completion of any
task would be but incomplete without the mention of the people who made it
possible, whose constant guidance and encouragement crowned our effort with
success.

I consider it my privilege to express and thanks to faculty members for giving me

opportunity to conduct this Internship project. Would also thank all the people
who helped me during the training as well as in preparing project.

Finally, this project would not have been possible without wholehearted
cooperation and support that I have received from my family, friends and
colleagues and faculties.

Regards,

Biplab Ghosh

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 DECLARATION

I hereby declare that the report entitled “Summer Internship and Industry
Analysis" is submitted by me for the award of the degree of Master of Business
Administration a record of study done by me and that the project work has not
formed the basis for the award of any Degree, Diploma, Associateship,
Fellowship, or other similar title.

Place: Kolkata

Date: (Signature of the Candidate)

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 TABLE OF CONTENTS

SL No TOPICS PAGE NO.

1 Executive Summary 7-8

2 Introduction 9-10

3 Company Profile 11-36

4 Overview of the Industry 37-63

5 Competitor analysis 64-66

6 Objectives of the Project 67-68

7 Research Methodology 69-74

8 Data Analysis 75-82

9 Observation and Findings 83-85

10 Conclusion and Recommendations 86

11 Bibliography 87

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 Executive Summary

Program: MBA
Duration: [17th Mar 2025 – 9th May 2025]

This report presents a comprehensive overview of my summer internship

experience in the Finance function at Tata Consultancy Services (TCS), a global
leader in IT services and consulting. The internship offered a unique opportunity
to apply financial management concepts to a dynamic, technology-driven
business environment and gain insights into the strategic financial operations of
a multinational corporation.

As an MBA Intern within the Financial Planning & Analysis team, my primary
project involved Cost Optimization and Profitability Analysis Across Global
Delivery Centers. The objective was to evaluate cost structures, improve financial
forecasting models, and recommend actionable strategies to enhance operational
efficiency and margin performance.

Key contributions and learning outcomes included:

 Conducting variance analysis and trend forecasting using historical

financial data.
 Supporting the preparation of monthly business review reports and
executive dashboards.

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  Utilizing tools such as Excel (advanced functions, pivot tables), Power BI,
and SAP ERP systems for data analysis and financial reporting.
 Identifying cost-saving opportunities through benchmarking and
comparative analysis across geographies.

In parallel, an industry analysis was conducted, focusing on the financial

dynamics of the global IT services sector. Key findings include:

➢ Increased capital expenditure in cloud infrastructure and AI integration.

➢ Evolving revenue models from fixed pricing to value-based and outcome-
based billing.
➢ Rising importance of financial agility and cost control amid global
economic uncertainty and currency volatility.

TCS's strong financial fundamentals, zero-debt balance sheet, and consistent

dividend policy highlight its sound financial management and investor
confidence. The company’s robust cash flow position enables continued
investment in innovation and strategic acquisitions.

This internship deepened my understanding of corporate finance, budgeting, and

financial strategy in a global service-oriented company. It has reinforced my
interest in pursuing a career in financial planning, corporate strategy, or
investment analysis within the tech and consulting sectors.

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 INTRODUCTION

The MBA summer internship is a vital component of the academic curriculum,

providing students with an opportunity to apply theoretical concepts in real-world
business settings. This report presents the insights and experiences gained during
my Finance internship at Tata Consultancy Services (TCS), one of the world’s
largest and most respected IT services and consulting companies.

Founded in 1968 and headquartered in Mumbai, TCS operates in over 50

countries and serves clients across various industries, including banking and
financial services, retail, manufacturing, and healthcare. With a reputation for
innovation, operational excellence, and strong corporate governance, TCS is a
significant player in the global IT services sector, and its financial strategies are
closely aligned with its long-term vision for sustainable growth.

The internship was conducted in the Cost Optimization and Profitability

Analysis division, with a focus on analyzing the company’s financial
performance and contributing to key strategic initiatives. The core objective was
to bridge the gap between academic learning and professional practice by
working on real-time financial projects, such as budgeting, cost analysis,
forecasting, and financial modeling.

The specific goals of the internship were:

• To gain exposure to financial processes such as budgeting, forecasting, cost

control, and investment planning.
• To understand the financial implications of business decisions in a fast-
paced technology services industry.
• To develop technical proficiency in tools such as Excel modeling, Power
BI, SAP, and TCS’s internal financial systems.

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 • To cultivate strategic thinking and business acumen by collaborating with
cross-functional teams and presenting actionable insights to senior
management.

In addition to the internship project, an industry analysis was conducted to assess

the financial and strategic landscape of the global IT services sector. The analysis
covers trends such as digital transformation, evolving pricing models, cost
pressures, and the shift toward outcome-based services. It also examines how
these trends impact financial strategy, risk management, and investment decisions
within companies like TCS.

Overall, the internship served as a critical learning experience, reinforcing core

MBA finance principles while offering firsthand insight into the financial
workings of a global enterprise. It helped develop a deeper understanding of
corporate finance in practice and strengthened my interest in pursuing a career in
strategic finance or financial planning within the consulting and technology
domains.

The combination of hands-on financial work and industry research provided a

holistic view of how strategic financial decisions are made in a leading
multinational corporation. It also offered valuable exposure to the practical
applications of finance in shaping business performance, enhancing shareholder
value, and supporting long-term corporate strategy.

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 COMPANY/ORGANISATION PROFILE

1.1 BRIEF HISTORY OF TATA CONSULTANCY SERVICES TATA

CONSULTANCY SERVICES

Tata Consultancy Services Limited (TCS) is a subsidiary of the Tata Group,

an Indian information technology consulting and business solutions company
which operates in 46 countries worldwide. TCS Limited was founded in 1968 by
a division of Tata Sons Limited. Its early contracts included punched card
services to TISCO (now Tata Steel), working on an Inter-Branch Reconciliation
System for the Central Bank of India. In 1975 TCS made an electronic depository
and trading system called SEMCOM for Swiss company. TCS also established
India's first software research and development center called Tata Research
Development and Design Centre in Pune, Maharashtra. On 25 August 2004, TCS
became a Publicly Listed Company.

Tata Consultancy Services is an IT services, consulting and business

solutions organization that has been partnering with many of the world's largest
businesses in their transformation journeys for over 50 years. TCS offers a
consulting-led, cognitive powered, integrated portfolio of business, technology
and engineering services and solutions. This is delivered through its unique
Location TM Independent Agile delivery model, recognized as a benchmark of
excellence in software development.

A part of the Tata group, India's largest multinational business group, TCS
has over 448,000 of the world's best-trained consultants in 46 countries. The
company generated consolidated revenues of US $22 billion in the fiscal year
ended March 31, 2020, and is listed on the BSE (formerly Bombay Stock
Exchange) and the NSE (National Stock Exchange) in India . TCS' proactive
stance on climate change and award-winning work with communities across the

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world has earned it a place in leading sustainability indices such as the MSCI
Global Sustainability Index and the FTSE4Good Emerging Index.

BRIEF HISTORY OF TCS

Tata Consultancy Services Limited (TCS) is a subsidiary of the Tata Group,

an Indian information technology consulting and business solutions company
which operates in 46 countries worldwide. TCS Limited was founded in 1968 by
a division of Tata Sons Limited. Its early contracts included punched card
services to TISCO (now Tata Steel), working on an Inter-Branch Reconciliation
System for the Central Bank of India.

TCS also offers IT infrastructure services, business process, outsourcing

services engineering. Even more, industrial services global consulting and asset
leveraged solutions.

They provide various services; their segments include banking financial

services and insurance; manufacturing; retail and distribution and telecom. The
company is a part of Tata Group which is one of India’s most respected business
conglomerates and most respected brands.

TCS acquired company name ICL 1903 in 1970. After acquiring the
company TCS started building software for a common process like financial
accounting, share registry work, sales analysis, and inter-bank reconciliation,
provident fund accounting, etc. and operating that software on the behalf of
customers.

They started their first international assignment in the year 1971. Their first
assignment was to build a computerized inventory control system and organize
the store for management consultancy services.

In 1973 TCS partnered with Burroughs to distribute and supports its

product in India as well as build software that would be exported to various

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Burroughs units and client all over the world. TCS completed their first full
software development lifecycle in 1974 when they built a financial accounting
package for two building societies in the UK on the behalf of Burroughs.

TCS acquired Citigroup Global Services(CGSL), India based BPO for

$505 million. The acquisition broadened TCS’s portfolio of end–to–end IT and
BPO services in the global Banking and Financial Services (BFS) sector. TCS’s
enhanced scale and expertise will be providing service improvements to Citi and
Citi’s customers. CGSL has more than 12,000 4 employees located in India and
expected to generate revenues of approximately $278 million in 2008.

Tata Consultancy Services delivers real results to global businesses,

ensuring a level of certainty no other firm can [Link] offers a consulting–led,
integrated portfolio of IT and IT–enabled services delivered through its unique
Global Network Delivery Model, recognized as the benchmark of excellence in
software development. TCS has over 143,000 of the world's best trained IT
consultants in 42 countries.

Tata Consultancy Services announced the launch of TCS BaNCS Core

Banking Release 12.0 at the annual flagship event for banking and capital markets,
SIBOS 2011, in Toronto

Growth over the Years of TCS

TCS was growing within a few years of its establishment. After 7 years of
its establishment, TCS crossed the $1 million mark in export revenue. TCS
opened Tata Research and Design Development Centre (TRDDC) in Pune, India
in 1981 with the objective of focusing on computer-aided software engineering
i.e. a structured, tool driven approach to software development using process
automation.

It was a farsighted vision of the management of the company to open

TRDDC. In 1983 TCS engaged with Swiss National Bank in the first and largest
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offshore project done out of Delhi Centre. Until then, Mumbai had been TCS’
only offshoring destination.

In 1988 TCS launched the integrated standard banking system which

automated branch banking functions and customer service, which was quickly
adopted by many banks in India. Furthermore, in 1989 TCS signed a huge deal
of $10 million with Swiss Securities Clearing Corporation (SEGA) to design,
build, and implement the world’s first real-time domestic and cross border
securities clearing and settlement system.

In 1991 TCS launched a user-friendly accounting software package called

E.X. in India, which went on to become a market leader in India in subsequent
years. In 1992 TCS set up the core trading platform of newly created National
Stock Exchange, which changed the way capital markets worked in India.

TCS launched the Network Custody Systems (NCS) in 1995 in partnership

with Standard Chartered Bank in Singapore. The product went on to become a
runaway hit, adopted by a leading custodian and other market participants across
the world.

In 2000 TCS unveiled a new $2 million global e-business development

facility at Mumbai. TCS aggressively pursued the e-business opportunity, grew
it into a significant business over the next few years. In 2001, TCS won the largest
banking software project in India. A project was to implement a core banking
solution at State Bank of India across 13,000 branches, including seven associate
banks. Likewise, TCS Signed the first $100 Million deal with GE Medical
Systems in 2002. One of the largest single contracts ever won by an Indian
software services company till then. In 2003 TCS Crossed the $1 Billion mark in
annual revenue. Then-CEO S Ramadorai formally unveiled the vision statement,
‘Top 10 by 2010’. This goal was achieved before time in 2009, when TCS finally
broke into the ranks of the top 10 global IT service-providers in terms of revenue,
profitability, number of people and market capitalization.
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 TCS unveiled its tagline “Experience Certainty” in 2005. In the same year,
TCS won a deal valued at $847 million (£486 Million) to provide insurance back
office transaction processing services to the UK-based Pearl Group. TCS also
acquired Sydney-based Financial Network Services for approximately US$ 26
million and Chilean business process outsourcing company, Comicrom, for $23
million. TCS introduced two new service lines, Remote Infrastructure
Management, and Business Process Outsourcing, marking the formal launch of
their full services strategy.

Present Condition of TCS

TCS Crossed $10 billion in revenue in 2012. The cloud platform of TCS
namely ion assessments, financial inclusion, HR, financial accounting, TAP™,
procurement, and analytics crossed $100 million in revenue in 2015. TCS ranked
64th overall in the Forbes World’s Most Innovative Companies in 2015.

TCS Net Worth

Tata Consultancy Services has $15.4B in estimated revenue annually. The

company competes with a similar tech giant like Wipro Technologies, Hewlett-
Packard, and Infosys. Tata Consultancy Services has made 2 investments. Their
most recent investment was on Dec 18, 2015. They invested $2M in KOOH
Sports.

It is the world’s 9th largest IT services provider by revenue. TCS ranked

10th on the Fortune India 500 list in 2017. In April 2018, TCS became the first
Indian IT company to reach $100 billion market Capitalization. The revenue of
TCS in the year 2018 is $19.08 6 billion. The company generated consolidated
revenues of US $22 billion in the fiscal year ended March 31, 2020.

1.2 BUSINESS PROCESS OF TATA CONSULTANCY – PRODUCTS

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 Business Process Management grew by 4.5% over the prior year driven by
a greater focus on robotic process automation as customers automate repetitive
tasks and focus on strategic work. Business Process Services refers to the delivery
of BPS over a cloud computing model. Whereas traditional BPS relies on labour
arbitrage to reduce costs, BPaaS aggregates demand using the cloud, servicing
multiple customers with a single instance, multitenant platform and shared
services, thereby delivering significant operating efficiencies. The pricing model
is usually outcome based. Business process services Of TCS include Designing,
enabling, and executing business operations including data management,
analytics, interactions and experience management.

1.2.1 PRODUCTS AND PLATFORMS ARE OFFERED BY TCS

TCS BaNCS

• 23 new wins (7 for TCS BaNCS Cloud) and 24 go-lives in FY 2020

• Highlights: -

Banking: Serves - 25% of the world population.

Capital Markets: Records 10 million trades per day (peak), represents $40 trillion
worth of AUC across 100 countries.

Insurance: Administers over 20 million life, annuity and pension policies; 135
million property and casualty policies.

TCS iON

• Digital Glass room: Virtual learning platform, made available to

educational institutions across the country shut down by lockdown, free of
cost. 2,000 institutions resumed their teaching sessions in a span of one
week since launch.
• Assessment: 200 million+ candidates assessed till date; 2.4 million
candidates assessed in largest single shift in FY 2020.
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 • Learning: 3 million+ learners on the platform, 47,000 courses available,
18,000 communities.
• Process Management: 500+ SMB clients, 1 million+ user.

Ignio

• World leading cognitive automation software for enterprise IT and

business operations.
• 54 new wins and 34 go-lives in FY 2020.
• 12 VARs and distributors and 13 tech and cloud partners in FY 2020.
• Manages over 1.5 million technology resources autonomously.

TCS ADD

• Comprehensive suite for digital transformation of drug development and

clinical trials.
• 9 new wins in FY 2020.
• 6 new offerings enabled by AI and predictive analytics launched in Site
Feasibility, Safety Leveraging Decision Fabric, Clinical Analytics and
Insights Platform, Regulatory Insights, Metadata Registry, Digital
Documents.

TCS HOBS

• Plug and play SaaS based business platform to digitally transform business,
network and revenue management domains of subscription based
businesses.
• Serving 27+ clients, across Communications, Utilities, Manufacturing and
Personal Care; Serving 21 million+ subscribers, handling 125,000+
devices and processing 1 billion+ events.
• 5 new wins and 4 go-lives in FY 2020.

TCS TwinX

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 • AI powered system of actionable intelligence – powered by an enterprise
digital twin (customer, product, process) to help business leaders simulate
and optimise enterprise decisions, predict and proactively manage
outcomes.
• 2 new wins and go-lives in FY 2020.

TCS Optumera

• AI and ML powered merchandise optimization platform that enables

retailers to unlock exponential value by optimizing their space, mix and
price in an integrated manner.
• 4 new wins and 1 go-live in FY 2020.

TCS Omnistore

• Unified store suite which leverages AI to help deliver personalized,

interconnected journeys across various touch points for frictionless
customer experience and predictive operations.
• 4 new wins and 2 go-lives in FY 2020.

Mastercraft

• Digital platform to optimally automate and manage IT processes.

• FY 2020 Highlights: 29 new wins, 1 billion+ records cleansed, 110 billion
records masked, 500+ million lines of code (mloc) analyzed, 25+ mloc
generated. Successfully delivered 60+ modernization projects so far.

Jile

• SaaS-based, scalable Agile DevOps platform to accelerate software

development and delivery and integrate DevOps tools.
• 8 new wins and go-lives in FY 2020.

1.2.2 SERVICES ARE OFFERED BY TCS

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IT Services–

• Custom Application Development

• Application Management
• Migration & Re–engineering
• System Integration
• Testing
• Performance Engineering

Infrastructure Services–

• Infrastructure Readiness Assessment

• IT Service Desk
• Data Center Management
• End User Computing Services
• Database Services
• Application Management Services
• Command Center Services
• Managed Security Services

Enterprise Solutions

• Supply Chain Management

• Master Data Management
• Customer Relationship Management
• RFID
• Call Management
• Oracle
• SAP

Consulting

• Business Consulting

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 • IT Consulting
• Business Solutions

Business Process Outsourcing

• Customer Interaction Management (CIM)

• Finance and Accounting
• Human Resources Outsourcing
• Knowledge Process Outsourcing
• Supply Chain Management
• Reconciliations
• Benefits Administration
• Payroll
• Industry–specific Offering

Business Intelligence & Performance Management–

• Business Intelligence
• Business Process Management
• Enterprise Data Management
• Integration Services
• Knowledge Management / Enterprise Content Management

Engineering & Industrial Services–

• New Product Development Solutions

• Product Lifecycle Management
• Plant Solutions & Services
• Geospatial Technology Solutions
• Industry–specific Offerings

1.3 CUSTOMERS OF TATA CONSULTANCY SERVICES – LEVEL OF

OPERATIONS

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TCS had a very productive year, engaging with customers in their innovation,
growth and transformation initiatives, expanding and deepening their
relationships, deploying very impactful solutions, and winning some of their
largest deals till date.

As a strategic partner to their Customers across 10 industries, they help them

deliver their business goals and drive technology led transformations.

Their clients across the world have achieved significant business results using
their world-class solutions and have recognized them for their efforts: they have
been ranked number one for customer satisfaction in Europe’s largest survey of
service provider performance. Conducted across 13 countries in Europe by
Whitelane Research. This is the third consecutive year that they have topped the
customer satisfaction ranking for the IT services industry, with TCS also being
rated number one across all nine individual key performance indicators (KPIs).

The new operating model that they call it Secure Borderless Workspaces™
(SBWS™). Using SBWS, we have been able to continue supporting their
customers not only in their mission critical operations but also their
transformational projects, just as before, without any slippages.

TCS customers are comfortable with this model and want them to take more work
that others are not able to handle. This has given them the confidence to come out
with a bold new Vision 25x25. They believe that by 2025, only 25% of TCS
associates will need to work out of their facilities at any point of time; and every
associate will be able to realize their potential without spending more than 25%
of their time in a TCS office. They have received over 500 emails from customers
in recent weeks, appreciating how seamlessly TCS managed the transition to
SBWS, and expressing gratitude for how their teams went above and beyond to
help keep their mission critical systems and their business operations running
under very difficult circumstances.

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MAINLY THEIR CUSTOMERS ARE: -

ABN AMRO Clearing Mashreq

ABN Amro Microsoft Corporation
Aegon Life Ministry of External Affairs, India
American Greetings Mother Dairy
Anglian Water Multi-national BFS company
Arysta LifeScience NV Bekaert SA
Asda National Employment Savings Trust
Astra Zeneca Neotel Telecom
Australia (VHA) New York Road Runners
BG Group PT Asuransi Allianz Life Indonesia
Bajaj Finance Limited Panasonic Corporation
Bajaj Housing Finance Limited (BHFL) Posten Norge
British Telecom Professional Services Major
British Telecommunication (BT) Proximus
Canon Europe Limited Proximus PLC
Cargotec QIAGEN
Cell C (Pty) Ltd Qantas
Citibank UK Refinitiv (Formerly Thomson Reuters)
Clariant Royal HaskoningDHV
DNB Norway Scandinavian Airlines (SAS)
Delphi-TVS Technologies Scottish Water
Department of Excise State Bank of India (SBI)
Department of Health , Family Welfare TDC Group
Directorate of Income Tax, GoI TMILL
Electricity Distribution Company Ltd Tata Advanced Systems
Flowserve Corporation Tata AutoComp Systems
GE Power Tata Communications Limited (TCL)

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GE Power Services Tata Consultancy Services
GHCL Limited Tata Metaliks Ltd.
Global Media House Tata Sons
Globe Telecom Ameriprise Financial
Hawaiian Airlines Tata Steel Europe
IFFCO Telecommunications Service Provider
KLM Royal Dutch Airlines Trent Hypermarket
Large European Bank Tryg Forsikring Denmark
Leading Financial Services Company Uganda Revenue Authority
Lexmark International Inc. Vedanta
London Hydro VersaCold
MDES Vodafone Hutchison
Malaysia Airlines Voltas
Marks & Spencer PLC Wolters Kluwer
Zain KSA Zee Entertainment Enterprises Ltd.

1.4 COMPETITORS OF THE TCS

Tata Consultancy Services Ltd. operates as an information technology services,

digital and business solutions company.

Regarded as one of the top 35 companies in the world by Forbes, TCS has a
market capitalization of 777,756.78 cr and operates through main 6 segments
which are:

• Banking
• Financial Services & Insurance
• Manufacturing
• Retail and Consumer Packaged Goods
• Telecom, Media and Entertainment
• Others

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 TCS tops the list with a market capitalization of followed 777,756.78 crore
by 3 major IT giants in India Infosys, HCL technologies, Wipro, and global
competitor IBM with 300352.29crore, 152,507.98 crore, 120382.48 crore , 8.321
lakh cr. market capitalization respectively.

HCL

An Indian multinational technology company, headquartered in Noida,

Uttar Pradesh, India. Originally a research and development division of HCL, the
company has offices in 44 countries including the likes of the US, France, UK
etc.

HCL being a home-grown competitor of TCS, operates in sectors like

• Aerospace and defense

• Automotive
• Banking
• Capital markets
• Chemical and process industries
• Mining and natural resources
• Oil and gas
• Retail and telecom
• Life sciences
• Media and entertainment
• Logistics and hospitality etc.

INFOSYS

Another major competitor of TCS which was given it a run for its money
on different fronts is Infosys Limited (formerly Infosys Technologies Limited).
The company is best known for providing best in class business consulting,
information technology and outsourcing services.

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 Infosys is the second-largest Indian IT company by 2017 revenues and
596th largest public company in the world based on revenue.

Infosys offers services to companies operating in sectors like finance,

insurance, manufacturing and other domains.

IBM

A main competitor of TCS is International Business Machines Corporation

(IBM). IBM is an American multinational information technology company that
produces and sells computer hardware, middleware and software.

Some of the main services that IBM provides includes

• Cloud computing
• Cognitive computing
• Commerce
• Data and Analytics
• IOT
• Mobile and Security

1.5 STRATEGIES – BUSINESS, PRICING, MANAGEMENT

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1.5.1 BUSINESS STRATEGY

In 2017, TCS unveiled its Business 4.0 thought leadership framework2 to

guide customers in their growth and transformation journeys. Their defining
behaviours of successful enterprises in the Business 4.0 era are: drive mass
personalization, leverage 15 the ecosystem, embrace risk and create exponential
value. They accomplish this by harnessing the abundance of resources – compute
power, storage, talent, market reach – created by the convergence of intelligence,
agility, automation and cloud.

This framework has resonated very well with customers. A study

commissioned by TCS in FY 2019 showed that over 90% of the surveyed
enterprises have adopted at least one of their behaviours, and that leaders – who
have adopted all their behaviors are expecting their strategies to drive over 10%
growth over the next three years.

They have augmented their thought leadership in this area, with their
unique Location Independent Agile model and the forward-thinking Machine
First™ Delivery Model. TCS’ Location Independent Agile model allows large
transformational programs to be delivered by globally distributed teams working
collaboratively in an agile mode, resulting in significant speed to market benefit
to the customer.

To help customers optimize their operations, TCS has been advocating the
Machine First™ approach that embeds analytics, automation and AI deep within
the enterprise to reimagine entire slices of operations at a time to make them
lighter, smarter and more agile, while delivering a superior customer experience.

1.5.2 PRICING STRATEGIES OF TCS

Below is the pricing strategy in Tata Consultancy Services (TCS) pricing

strategy:

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 Tata Consultancy Services has a diverse offering and hence a variable
pricing policy. Through its different pricing models and policies, TCS promises
clients - process improvement, cost reduction, revenue enhancement and timely
deliverables. TCS follows success-based pricing model in some of its total
outsourcing contracts and differential pricing model for its ion services, wherein
the prices differ as per different clients. With the help of this, TCS is targeting
small towns and all types of customer bases. Since ion is a combination of
hardware, software and network, along with the services provided by TCS, there
is no addition price to be paid for this technology. Hence, the pricing strategy in
the marketing mix of TCS is basically based on the client requirements, projects
and the scale of operation.

1.5.3 MANAGEMENT STRATEGIES OF TCS

Strong leadership and effective corporate governance practices have been

the Company’s hallmark inherited from the Tata culture and ethos. The Company
has a strong legacy of fair, transparent and ethical governance practices. The
Company has adopted a Code of Conduct for its employees including the
Managing Director and the Executive Directors.

In addition, the Company has adopted a Code of Conduct for its non-
executive directors which includes Code of Conduct for Independent Directors
which suitably incorporates the duties of independent directors as laid down in
the Companies Act, 2013 (“the Act”). The Company’s corporate governance
philosophy has been further strengthened through the Tata Business Excellence
Model, the TCS Code of Conduct for Prevention of Insider Trading and the Code
of Corporate Disclosure Practices (“Insider Trading Code”).

The Company has in place an Information Security Policy that ensures

proper utilization of IT resources. The Company is in compliance with the
requirements stipulated under Regulation 17 to 27 read with Schedule V and
clauses (b) to (I) of sub-regulation (2) of Regulation 46 of Securities and
27
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“SEBI Listing Regulations”), as applicable, with regard to
corporate governance.

1.6 CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES OF TCS:

TCS is deeply rooted in all the communities that they work with globally,
through a variety of formal CSR programs and volunteering efforts by employees.
They engage in community initiatives that are designed to create ‘Impact through
Empowerment’, in the areas of education and skill building, health and wellness,
and environment. They also support the restoration of heritage sites and
participate in relief operations during disasters. TCS’ global presence, core IT
expertise and large employee base help scale up social programs. In addition,
TCS partners with Tata Trusts, NGOs and various not-forprofit organizations. All
these sustainability initiatives have tangible outcomes, on both individuals and
communities, and their impact is regularly measured, reported and improved
upon.

TCS’ CSR initiatives reached more than 1.66 million beneficiaries globally,
in FY 2019, once again creating a considerable societal impact in the countries in
which they operate.

1.6.1 EDUCATION AND SKILL BULDING

Education is an integral part of development, and critical to a country’s

economic competitiveness. In India, the Right to Education (RTE) Act guarantees
free and compulsory education for all children between the ages of 6 and 14.
While every child in India has the right to education, there is a huge difference in
the facilities available to children in urban and rural areas.

TCS’ ‘Lab on Bike’ program provides children from low income,

disadvantaged communities and their teachers with fun learning opportunities
that foster a scientific mind-set. The Lab on Bike instructor travels to government
28
schools with a set of science experiment kits through which he conducts
experiments in physics, chemistry and biology. The Lab on Bike program has
been implemented by TCS in 12 schools around Bengaluru and 10 schools in
Ahmedabad, in association with Agatha International Foundation.

An experiment demonstrating the wave theory in a government school in

Odisha. TCS continues to run several pioneering programs across various Indian
states in education and skill development, which prepare children for a digital
future. Launchpad and Insight are two such initiatives. Launchpad, started in
2016, introduces secondary school students (aged 10-13 years) to coding logic,
using C++ and Python.

It is a gamified approach that helps children develop logical thinking and

learn programming methods. InsighT, launched in 2006, is an IT awareness and
enablement initiative for senior school students (aged 15-17 years) that aims to
provide an understanding of programming, IT and its applications. 13,546
students benefited from these programs in FY 2019 (9,964 in FY 2018).

TCS supports the Avasara Academy, a residential school for

underprivileged girls in Pune, through the ‘TCS Centre for Entrepreneurship’, to
develop leadership potential among the students.

TCS’ BridgeIT is a unique program that uses IT as a key enabler in school

education, adult literacy program and the creation of entrepreneurs in rural
villages. Technology is 18 effectively utilized to educate rural communities and
provide a platform to develop ideas and skills that can help increase employability
and the standard of living.

1.6.2 HEALTH AND WELLNESS

TCS has provided an integrated Hospital Management System (HMS) and

IT infrastructure which includes a comprehensive web-based solution, to the
Cancer Institute at Chennai and Tata Medical Centre at Kolkata. HMS is a secure
29
and integrated system that aims to minimize the use of paper for information flow
across the hospital.

The Digital Nerve Centre (DiNC) is an innovative platform that leverages

digital technologies to connect to leading cancer research centres and specialists
within the National Cancer Grid. DiNC enables the country’s oncology experts
to effectively collaborate and communicate. TCS in collaboration with Tata
Trusts is working towards the implementation of this platform in the National
Cancer Grid hospitals at Tata Memorial, Mumbai; Cancer Institute, Chennai; Tata
Medical Centre, Kolkata and Regional Cancer Centre, Thiruvananthapuram.

TCS partners with the American Heart Association to support national

awareness and prevention through information sharing and awareness building,
particularly aimed at women. There is an increasing prevalence of cardiovascular
disease across the United Kingdom and Ireland (UK&I). TCS entered into a
corporate charity partnership with the British Heart Foundation (BHF) to help
spread awareness on heart health.

Operation Smile provides free surgery for children with cleft lip and palate
in remote areas of China. TCS employees regularly volunteer and provide their
services on medical record and patient image management, translation services
for international medical staff and also help patients who undergo surgery.

1.6.3 ENVIRONMENT

TCS’ commitment towards the environment is driven by an organization-

wide environmental policy that focuses on making a continuing positive impact
on the environment, includes environmental responsibility as a core
organizational value, and 19 creates awareness among employees. The overall
approach adopted aims to mitigate climate change related risks through resource
optimization and impact minimization.

• Energy Conservation and Carbon Management

30
 Energy and carbon continued to be material environmental aspects for
their greater focus on energy reduction and carbon mitigation. This year they
further reduced their carbon footprint by ~8.1% over the prior year, and ~56%
over the baseline year FY 2008. Having achieved their 2020 target to reduce the
specific carbon footprint by 50%, they are now working on the next stage of their
environmental sustainability targets.

• Water Conservation

TCS has optimized its water consumption through conservation, sewage

treatment and reuse, and rainwater harvesting. All their new campuses are
designed for 50% higher water efficiency, 100% treatment and recycling of
sewage, and rainwater harvesting. In FY 2019, consistent water management
measures, consolidation of offices and increased occupancy at green field projects
has helped them to reduce their specific fresh water consumption by over 5.5%
compared to FY 2018.

• Waste Reduction and Reuse

Since, they are an IT services and consulting organization, their facilities

only generate electronic, electrical and office consumables waste, and municipal
solid waste. In FY 2019, over 42% of the total food waste generated was treated
using onsite composting methods or bio-digester treatment. All TCS campuses,
owned offices and leased offices that have the required space, have been provided
with onsite food waste management facilities. Dry waste is categorized,
segregated and sent for recycling. Garden waste is composted onsite. Over 275
tons of compost was generated in FY 2019, helping TCS avoid the use of
chemical fertilizers and the resultant soil and groundwater pollution.

1.7 EXPORT/IMPORT

1.7.1 EXPORT OF TCS

31
 Tata consultancy services are a premier company that exports and import
goods from countries including United Kingdom, Singapore, and host of other
countries. 20 Tata consultancy services has maintained its position as the largest
software exporter from India selling software worth Rs 5503 crore (Rs 55.03
billion) in the International market in 2003-04 according to latest NASSCOM
rankings .TCS on the list of top 20 software and services exporters (excluding
ITes-BPO services). Export revenue constituted 93.3 percent of the total
unconsolidated revenue in FY 2019 (92.2 percent in FY 2018).

1.7.2 IMPORT OF TCS

The Company continues to adopt and use the latest technologies to improve
the productivity and quality of its services and products. The Company’s
operations do not require significant import of technology.

Ex Export revenue constituted 93.5 percent of the total standalone revenue

in FY 2024 (94.3 percent in FY 2023).

Foreign exchange earnings and outgo FY 2024 (Crore) FY 2023 (Crore)

Foreign exchange earnings 1,93,252 1,83,412
CIF Value of imports 174 144
Expenditure in foreign currency 81,726 75,786

1.8 COLLABERATIONS AND EXPANSION PLANS

1. TCS, which had acquired French SAP service provider acquire Alti SA for 75
million euros (about Rs 533 crore) in 2013, has been focussing on organic
growth even as its global and domestic rivals went on an acquisition spree.
2. TCS has acquired the business of BridgePoint Group, LLC, a U.S.
management consulting firm catering to the financial services industry, and
specializing in retirement services, through the purchase of select company
assets.

32
3. This acquisition provides TCS' financial services and insurance domain
knowledge, particularly around US retirement services, where BridgePoint's
team of experts currently provide strategic insights and advisory services
around growth, business agility, customer experience and technical
transformation.
4. BridgePoint's deep customer relationships and significant industry knowledge
will add to TCS' ability to provide digital solutions and drive transformation
in the USD 1 trillion US retirement services market.
5. The US retirement business is complex, so BridgePoint's deep industry
expertise and team of highly experienced consultants will enable TCS to
develop a robust customer-focused retirement services business.
6. TCS has announced an expansion of its long-term partnership with Phoenix
Group, Europe's largest life and pensions consolidator, to drive the growth and
transformation of the Standard Life business and meet the needs of its
customers, workplace clients and their advisers.
7. The expanded partnership will result in the digital transformation of Standard
Life's pensions and savings operations onto the TCS BFSI Digital Platform,
powered by TCS BaNCSTM. This will expand the overall scope by a further
4.2 million policies, taking the total number of policies managed by Diligenta,
TCS' regulated subsidiary in the UK, on behalf of Phoenix Group, to nearly
10 million.
8. Tata Consultancy Services is seeing greater demand to transform India’s first-
generation e-Governance projects, as the government steps up use of such
projects, including the one for income tax filings. On August 31 2019, nearly
5 million people filed their tax returns online, a record for any single day.

1.8.2 EXPANSION PLANS

1. Tata Consultancy Service (TCS) is preparing to invest significantly in the

expansion plans of its cloud-based learning solution, TCS iON. The cloud-
based collaborative 22 learning platform, TCS iON helps students — in
33
 India as well as worldwide — access study material, make submissions and
also receive feedback. It helps students interact with instructors,
administrators and learning institutions.
2. TCS is starting a major centre in Patna Bihar capital. Investment by India's
largest IT company in Bihar should promote IT investments in the state."
India's digital sector and exchanged new ideas shaping a brighter digital
future for the country.
3. Tata Consultancy Services (TCS) is revisiting its strategy by raising the
size of its business units, apart from identifying the next billion dollar bets
in the digital services space. The IT firm is planning to raise the size of the
business units with own profit and loss (P&L) accounts to around $400 -
$500 million from $100 - $150 million at present.
4. Tata Consultancy Services (TCS, announced that will consolidate its
operations in Eastern Europe, The Middle East, Africa and Latin America
into a strategic business unit and appointed Gabriel Rozman, as Executive
Vice President – Emerging Markets. New strategy to diversify revenues
and risks, expand business in emerging markets and explore new sources
of talent. New Unit will focus on emerging markets across Eastern
Europe, Middle East, Africa and Latin America

1.9 SWOT ANALYSIS OF TCS

STRENGTHS IN SWOT ANALYSIS OF TCS

1. Clients from diversified markets: TCS has clients from diversified

industries such as Banking, financial services, retail, telecom and media
and entertainment etc. Exposure to diversified business industries dilutes
business risks of overdependence on a single market or industry.
2. Geographic Footprint: TCS has strategically expanded to geographically
diversified markets throughout the globe which includes North America,
the UK, Middle East Europe, Africa and Asia-Pacific. Presence in

34
 geographically diversified markets reduces business risks and creates a
strong global image for TCS.
3. Strategically established partnership network: TCS has established the
strong partnership with global companies around the world. It has
partnered with some technology giants such as Adobe, Amazon, Bosch,
Dell and HP etc. These partnerships allow TCS to deliver technologically
sustainable and innovative business as well as strategic solutions.
4. Strong portfolio of services offered: TCS has a strong and balanced
portfolio of offered services which includes, Business process services
(BPS) application development and maintenance, IT infrastructure,
business intelligence and much more. Such a strong and diverse portfolio
attracts various business clients.

WEAKNESS IN SWOT ANALYSIS OF TCS

1. Legal battles: In 2014, TCS was involved in a legal battle against Epic
Systems for alleged misuse of Epic System’s confidential information. In
2016, TCS was found guilty and was ordered to pay damages worth $940
million. TCS has opposed the judgment and challenging it to the higher
jurisdiction. Such incidents affect the image of the company.
2. Decline in performance by Diligent: Diligenta, a subsidiary of TCS has
continuously performed below par. The company is not expected to
improve on performance soon and thus affects TCS’s bottom-line.

OPPORTUNITIES IN SWOT ANALYSIS OF TCS

1. Digital transformational technologies: The world is going digital and hence

business dynamics are also changing to the digital economy. TCS has
focused on digitally transforming itself and provide digital solutions. TCS
should look ahead to spend more on digital transformation technologies.
2. Cloud-based solutions: With the advent of digital transforming
technologies and fast internet connectivity. The world is moving towards
35
 cloud based solutions and as a matter of fact, the spending on cloud
services is expected to grow at a CAGR of over 19% in the next 5 years.
TCS has a solid infrastructure to provide cloud-based solutions and hence
it is well poised to be benefitted with the demand created.
3. Machine-to-Machine (M2M) solutions: M2M solutions are those which
allow wireless as well as wired communications systems. There is a
positive outlook for 24 M2M solutions in the future and is expected to
generate high revenues. TCS has a comprehensive suite of M2M services
which will enable to take advantage of the demand for M2M solutions.
4. Enterprise Mobility market: With increasing, mobile worker population
and increased usage of sophisticated mobile devices, enterprise mobility
solutions are expected to be driven by business applications. There is a
latent demand for mobility solutions which is expected to grow at a CAGR
of 24.7% till 2022. With TCS’ increasing focus on developing enterprise
mobility solutions, it is well positioned to benefit.

THREATS IN SWOT ANALYSIS OF TCS

1. Immigration restrictions: With stricter immigration laws, increased H-1B visa

fees and changing political circumstances in the US, Indian IT companies are
expected to suffer from it as it will increase its costs and impact profitability
and hence this is a threat to the industry.
2. Intense competition: The IT industry is subjected to intense competition from
companies such as Wipro, Infosys, Accenture, Capgemini and Deloitte etc.
This leads to pricing wars in the industry and limits market share.
3. High attrition rate: The Indian IT industry is subjected to high attrition rate
which increases cost in providing skills and leadership development to new
hires and also impacts the image of the company.

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 OVERVIEW OF THE INDUSTRY
2.1 BRIEF HISTORY OF THE INDUSTRY

Information Technology (IT) sector in India is one of the rapidly growing

sectors. Indian IT sector has a great reputation and brand value in the global
markets. Indian IT industry comprises of Software sector and Information
Technology Enables Services (ITES). Indian IT industry also includes Business
Process Outsourcing (BPO) industry. India is an affordable market destination for
software development and IT & ITES services.

2.1.1 HISTORY AND ORIGIN OF IT INDUSTRY

The journey of Indian IT industry started in 1974, when Burroughs,

mainframe manufacturer, offered Tata Consultancy Services (TCS) to export
programmers for the installation of system software for its US client. But the
situation was very worse that no local business firm was supported and the policy
of Indian Government towards private companies was also very aggressive. The
Indian IT industry was started by a Bombaybased corporation which entered the
business with the supply of programmers to IT companies located overseas.

Till 1984, IT was not considered as an industry and was not given any
subsidies. In 1984, some strategic reforms were made and considered IT as an
industry. In the same year, Indian Government introduced a policy, New
Computer Policy (NCP), which consisted of a package of slashed import tariffs
on hardware and software. And the policy also recognized the software exports
as a ‘delicensed industry’. Delicensed industry is eligible for bank finances, free
from the license-permit and to set up offshore units of foreign companies in India.

IT industry in the country has played a major role in placing India on the
international map. The Indian IT industry mainly comprises of instance system
Integration, software experiments, Custom Application Development and

37
Maintenance (CADM), network services and IT solutions. According to the
analysis done by the annual report 2009- 10 ,prepared by the Department of
Information Technology (DIT) ,the IT_BPO industry was expected to achieve a
revenue aggregate of US$ 73.1 billion in 2009-10 as compared to US$ 69.4
billion in 2008-09 , growing at a rate of over 5% . The report even predicts that
the Indian IT-BPO revenues may reach US$ 225 billion in 2020.

PRESENT AT IT INDUSTRY

In 2019, the global market for software and services is estimated to have
grown to $1.5 trillion1 . IT services is estimated to have grown by 3.5% YoY,
characterized by a shift to digital technologies, and adoption of DevOps, and as-
a-service models. Business Process Management grew by 4.5% over the prior
year driven by a greater focus on robotic process automation as customers
automate repetitive tasks and focus on strategic work.

2.2 BUSINESS PROCESS OF THE INDUSTRY

A Business process is a collection of linked tasks which find their end in the
delivery of a service or product to a client. A business process has also been
defined as a set of activities and tasks that, once completed, will accomplish an
organizational goal. The process must involve clearly defined inputs and a single
output. These inputs are made up of all of the factors which contribute (either
directly or indirectly) to the added value of a service or product. These factors
can be categorized into management processes, operational processes and
supporting business processes.

2.2.1 BUSINESS PROCESS OF IT INDUSTRY

IT business processes standardize all the activities of the company related

to the information technology, bringing them to an elevated state of quality and
excellence. With the IT business processes, the services can assure the delivery,
no matter who executes them.
38
 The absence of clearly defined IT business processes increases the chances
for errors in the processes of the company. As a result, in a future replacement of
employees, all the 27 structure would be compromised. In contrast, the presence
of an IT governance with well-modeled processes allows that any employee of
the area attends to the projects in a satisfactory way, even in critical and
emergency situations. It works like a business continuity plan.

IT business processes must be considered as an integral part of the business

process management. Therefore, it has to receive many resources and investments,
so they can be improved and optimized in a continuous way, contributing to the
developing and growth of the business.

1. Client On boarding Process

When on boarding new clients, an agency has to display professionalism,

courtesy, and expertise. If they end up acquiring a big client, the last thing they
want to happen is their team sitting here and wondering. What would be next

If they have a clear, defined client on boarding process, however, that’ll be

a thing of the past. For the sake of an example, let’s look at the case with a
marketing agency.

• Schedule an initial meeting. Get to know the client’s business, how the
industry works, how’s the competition, etc.
• Assess company goals & assets. Know what their client wants from them, and
how they can use their strengths to achieve those goals.
• Define KPIs. The client will want to have a way to measure their progress,
making sure that they’re bringing in results.
• Create an action plan. What their team is going to do within the week, month,
year, etc.
• Pitch the client. See if they like the proposed strategy. If not, start over. If they
do, assign all the tasks to the right team members.

39
2. Content Marketing Process

Content marketing can be a very hectic mess unless they organize it into
clear business processes. Unless they work on this, they’ll end up having 20
work-in-progress articles 28 lost in limbo, a very confused designer, and a
confused follower-base – desperately waiting for their weekly article.
For the sake of an example, let’s go through a very basic publishing process
• The content writer takes up & finishes the first draft of an article. Includes
descriptions of any custom images that are to be used in the article.
• The marketer gathers influencer contact information, to be used for advertising
and marketing once the article is done.
• The editor proof-reads the article, makes points on grammar, style, spelling,
etc.
• The designer creates custom images as asked, sending them over to the content
writer.
• The writer takes the comments into consideration, fixes any mistakes, and
adds the images to the article.
• The SEO expert makes sure that the article meets the right optimization
bestpractices & publishes the article.
• The marketer uses a combination of advertising & email outreach to make sure
that the article is read.

3. Business Process Mapping

Business Process Mapping is straightforward – they probably have a pretty

good idea of how their business works. If they’ve been doing it for a while, then
they know the ins and outs of it! So, they’d want to put down all their processes
on paper. They could either use actual paper for this, a flowchart software, or
workflow management software. From then on out, they can use the graph to
analyze or keep track of their processes.

40
 As a given, the more advanced their tool is, the more benefits they’ll get.
Workflow software, for example, in addition to allowing for mapping, also let’s
keep track of the process in real time.

4. Business Process Improvement (BPI)

Once they have all the processes down, they’ll get an even better idea on
how their business works. That would eventually lead them to initiate a business
process improvement (BPI) campaign – from a top-down view, it’s very easy to
spot weaknesses in their processes. Sometimes they’ll find tasks that are
completely useless, others, they’ll find more efficient ways to do them.

In some cases, they’ll find that some tasks are completely useless and can
be skipped. In others, they might find a much better, faster way to do them.

5. Business Process Automation (BPA)

One way to improve their business processes is to just put technology into the
mix – and that’s where business process automation (BPA) comes in. Any task
that is extremely menial – that is, too much manual labour– there’s a chance that
software can do it much better and faster. Say, for example, a team member has
to email the person who’s responsible for the next step of a process. Rather than
having to manually do it, business process management software (BPMS) could
do it for them.

6. Business Process re-engineering

In some cases, they’ll realize that their processes are just completely out of
date. Rather than take something old and add up on it, it’s going to be much easier
to just completely re-do them.

Business Process Re-Engineering (BPR) means taking their old processes

and finding new ways to carry them out. This can be with the help of technology,
for example. Instead of manually doing accounting in the form of a physical
41
ledger, they could adopt some accounting software that makes the old process
completely redundant.

A more recent example is using smart contracts for BPR. DNN,

decentralized news network, powers its publishing system through smart
contracts. The submitted articles need to be reviewed by different readers in order
to select the best one and push it to 30 the editors and ultimately to the publishers.
Smart contracts can help them to move the articles through the publishing
pipeline, stage after stage, while reducing biases and increasing efficiency.

SEGMENTS OF INDIA’S IT SECTOR

Source: IBEF presentation Feb 2019

2.3 MARKET DEMAND AND SUPPLY – CONTRIBUTION TO GDP –

REVENUE GENERATION

2.3.1 MARKET DEMAND OF IT INDUSTRY

The demand for IT products and services from India will continue to
increase as companies making up the Indian IT/software industry become more
advanced and increasingly standardize their processes, which is inevitable with
42
the increase in the number of GICs in India, the demand for technical employees
in the country is expected to increase by approximately 12% by 2024. In 2024,
many job opportunities related to cyber security, analytics, applied machine
learning, programming, coding, AI, mobile app development, augmented reality
apps design, and more will emerge in India. Mobile app 31 development and
augmented reality apps design, in particular, will provide fresh graduates in India
with many job opportunities.

Now, as companies are maturing in their technology usage, there are

demands across all four IT pillars defined by CompTIA’s IT framework.
Software development is the area where most companies expect to place focus in
the upcoming year, but there is also strong demand for cyber security, data, and
infrastructure.

2.3.2 SUPPLY OF IT INDUSTRY

The Indian Software development industry has in the last two decades of
its growth focused primarily on the supply of software services to foreign
countries as of now there is widening gap between demand and supply side
arising from the IT sector, with the growing demand of services the IT industry
in India is not fully able to supply the products or services that is demanded. This
is due to certain supply side challenges like lack of talent availability, outbreak
of pandemic diseases, etc.

2.3.3 CONTRIBUTION TO GDP

The IT industry is a vital part of India’s economy, and in the fiscal year of
2016/2017, it generated about 8 percent of India’s GDP alone – a slight decrease
from previous years, when it made up about 10 percent of the country’s economy.
Nevertheless, the IT industry is growing, as is evident by its quickly increasing
revenue and employment figures. IT includes software development, consulting,

43
software management, and online services, and business process management
(BPM).

As the industry in the south Asian continued to flourish, end-user spending

on the market also increased, albeit slowly. IT end-user spending in the country
stood at around 67 billion U.S. dollars in 2013 but has decreased considerably
and is estimated to reach a value of around 17 billion U.S. dollars in 2020. About
a third of this spending in 2019 was estimated to be in the devices market, with
telecommunications services accounting for another third.

Some of the biggest IT service providers in India include IBM and HP, as
well as Indianbased companies, Wipro and Tata Consultancy Services (TCS).
Overall, in 2017, the industry provided direct employment to almost four million
people and indirect employment to more than ten million.

2.3.4 REVENUE GENERATION

The total revenue generated by the IT and BPM industry in India was over
175 billion U.S. dollars in 2019. In the year 2014, a revenue of around 118 billion
dollars was generated by the IT industry, which was revitalized by the massive
wave of outsourcing from foreign companies.

The Domestic Market

The IT-BPM sector contributed a share of about eight percent to India’s

GDP in fiscal year 2018. Exports from the sector also increased gradually over
the years. The south Asian country also had a revenue of four billion dollars
through the ITeS and BPO segment in 2018. At the same time, the sector had an
export value which was almost thrice more than the export of software products
and engineering services.

2.4 LEVEL AND TYPE OF COMPETITION – FIRMS OPERATING IN

THE INDUSTRY

44
2.4.1 LEVEL AND TYPE OF COMPETITION

The level of competition in Indian IT-ITeS industry during 2004-05 to

2014-15. For this purpose, firm-level data is collected from Centre for Monitoring
Indian Economy (CMIE) PROWESS database.. The findings reveal the presence
of considerably higher level of concentration (or low competition) in both the IT
and ITeS segments of the industry during the study period. Moreover, found to
be 0.19 and 0.22, respectively in IT and ITeS markets, which indicate that the IT-
ITeS industry was monopolistically competitive during the study period. In policy
front, the study suggests to improve the competition level by devising policies to
promote the entry of new firms in the industry. Government should formulate
policy in the direction to encourage small and medium firms of this industry to
expand their business in the future. Furthermore, keeping in view of the inherent
heterogeneity of this industry, segment-specific policy may be planned for further
improvement of competition level instead of devising a common policy for the
entire industry.

A small number of firms (such as Tata Consultancy Services (TCS), Wipro,

Infosys, Hindustan Computers Limited (HCL), etc.) has been dominating the
industry since long, albeit the entry of new firms over the years. In this regard,
policy should be formulated to help the medium and small firms so that these
firms could also be able to grow in the future, thereby improving the level of
competition over time. Keeping in view of the intrinsic heterogeneity of the
industry, segment-specific policy should be devised for enhancing competition in
this industry in the future.

2.4.2 FIRMS OPERATING IN THE INDUSTRY

Following are the top IT companies in India which are playing a major role
in operating the IT industry and growth of the economy.

• Tata Consultancy Services Ltd (TCS)

45
 Tata Consultancy Services Ltd (TCS) is an Indian multinational
information technology (IT) service and consulting company. It is one of the top
10 IT companies in India. The company is headquartered in Mumbai,
Maharashtra, India. It is a subsidiary of Tata Group and operates in 149 locations
across 46 countries. It is offering IT, Business Consulting and Outsourcing
Services Worldwide. It is an Indian MNC company which is a subsidiary of Tata
Group. The company was established in the year 1968.
• HCL Technologies Ltd
HCL Technologies Ltd was founded in the year 1976 by Shiv Nadar, and
it is headquartered in Noida, India. It is an Indian Multinational IT service
company. The company’s segments include software services, infrastructure
management services, and business process outsourcing services. HCL
Technologies Ltd is offering a wide range of services including enterprise
transformation, engineering, remote infrastructure management, business process
outsourcing, etc. It is among the top 10 IT companies in India. The company is a
subsidiary of HCL Enterprise. It has offices in 44 countries including the United
States, France and Germany, and the United Kingdom.
• Infosys Ltd
Infosys Ltd was founded in the year 1981 by N.R. Narayana Murthy. The
Indian MNC company is offering Information Technology, Outsourcing Services,
and Business Consulting. It is among the top 10 IT companies in India. It is
headquartered in 34 Bangalore, Karnataka. The company also provides
application development and management, independent validation, product
engineering and management, infrastructure management, enterprise application
management, and support and integration services.
• Larsen & Toubro InfoTech Ltd (LTI)
The company was established in the year 1997. It is headquartered in
Mumbai, Maharashtra. It is offering digital & automation solutions, IT Service
Management, and IT Consulting. Its offices are located in top Indian cities as well

46
as North America, Europe, Middle East, South America, Africa, Middle East,
Asia Pacific, etc. The company is among the top 10 IT companies in India.
• MindTree Ltd
MindTree Ltd was founded in the year 1999 by Subroto Bagchi, Ashok
Soota, Namakkal Parthasarathy, Krishna Kumar Natarajan. Mindtree Ltd is an
Indian multinational information technology and outsourcing company
headquartered in Bengaluru, India and New Jersey, USA. It is one of the top 10
IT companies in India. The company deals in mobile applications, e-commerce,
digital transformation, cloud computing, data analytics, EAI and ERP. It is
offering a wide range of products In-Store Analytics, Intelligent Video
Surveillance, Connected Building, Employee Training & Micro-Learning and
Field Engineer Inspection. MindTree provides services – Digital, Operation, and
IT Consulting.
• Mphasis Ltd
Mphasis Ltd was founded in the year 2000 by Jerry Rao, Jeroen Tas. It is
headquartered in Bangalore, India. The company is offering a wide range of
services including IT, Business Consulting and Outsourcing [Link]
company provides architecture guidance, application development and
integration, infrastructure technology and applications outsourcing services, and
application management services. Mphasis is one of the top 10 software
companies in India.
• Oracle Financial Services Software Ltd
Oracle Financial Services Software Ltd was founded in the year 1990. It is
a subsidiary of Oracle Corporation. It is headquartered in Mumbai, India. The
company provides a wide 35 range of services including business consulting,
outsourcing services and IT services. It provides IT Solutions to the Banking
Industry. The company’s offerings cover retail, private wealth management,
corporate and investment banking, funds, trade, treasury, cash management, asset
management, payments, lending, and business analytics. Oracle is one of the top
10 IT companies in India.
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• Wipro Ltd
Wipro Ltd was founded in the year 1945 in Amalner, Maharashtra. It is
headquartered in Bangalore, Karnataka. Wipro Ltd is among the top 10 IT
companies in India. The company operates through two segments: IT Services
and IT Products. The Company’s IT Services business provides a range of IT and
IT-enabled services. The IT Products segment provides a range of third-party IT
products, which allows it to offer IT system integration services.
• Tech Mahindra Ltd
Tech Mahindra Ltd was founded in the year 1986, and it is headquartered
in Pune, India. Tech Mahindra Ltd is an Indian Multinational provider of IT
networking technology solutions and business process outsourcing to the
telecommunication Industry. The company is one of the top 10 IT companies in
India. It is offering a wide range of solutions.
✓ Next-Gen Solutions
✓ Cloud
✓ ADMS Java & Open Source
✓ Consulting
✓ Customer Experience
✓ Enterprise Architecture
✓ Enterprises of Future etc.

2.5 PRICING STRATEGIES IN THE INDUSTRY

Software pricing strategy plays a significant role in augmenting software
market sales. It can be interpreted as an important tool in the marketing toolbox
which a company needs to consider before launching a product in the market. The
managerial group in the software industry has conventionally improved their
pricing strategies based on cost 36 related criteria. Cost-based pricing strategies
concentrate on the product value to the customer. Furthermore, they are also
focusing on the short-term value to the vendor. On the other hand value based
pricing is based on the customer's understanding of the value of the product.

48
Value based pricing strategies pays attention on innovating long term value for
the customer.

Aim of pricing strategy is to set a price that the customer sees in the product
while meeting profits on investment goals. This paper presents a comprehensive
view about the conventional cost-based approaches to software pricing; these
ideas to software pricing are short-term and place the seller’s interests over the
interests of the buyer.

• Cost Based Software Pricing

Cost-based software pricing is one of the most popular methods which rely
on the information provided by the cost-accounting system. This authentic data
is generated to produce operating results, budgets, and financial statements.
Marketing and product managers are trained to price the software to yield a
desired return on fully allocated costs. There is no product approval in a business
development plan for a novel market without considering an lucrative return on
investment (ROI).This profitably calculations ignores the voice of the customer
and serves as a layout plan for average market results. Cost-based pricing
strategies can tap the power of the market sellers to force a higher price on to the
seller.

• Cost Based concept of Value

The conventional software pricing model addresses customer value which
is often calculated as profit. Profit is figured out by deducting the software's
development cost from its price (i.e., the total value to the customer). In totality,
the value to the customer is 6 defined in terms of particular needs fulfilment, good
will, ease of use, opportunity costs, the business value of information, or other
unmeasured factors.

• Earner Value Concept

Earned value is a related cost-based concept that is used for trailing
software’s adherence to the original project budget. Earned value pays attention
49
on explaining the cost variances between the amounts allocated for the work and
the equivalent dollar volume of work completed during specified time duration.
The cost variances are 37 noticeable to specific project tasks, which can then be
evaluated for corrective action. These cost-based ideas to measure value form the
basis of the main software engineering economics models.

• Issues of Cost based software pricing

Pricing disputes is the most quarrelsome issues that arise between software
vendors and their customers. Pricing resistance originates from high software
prices and perceptions that the vendor puts its own interest ahead of those of the
customers. A lack of trust can result from oppressive, cost-based pricing. As a
result of the relatively big investment in software research and development when
compared to other product costs, software vendors have high fixed cost (i.e.,
software development) and relatively low variable costs (i.e., excluding service
and support). The situation outcomes make software product managers to put
heavy emphasis on the aims of cost recovery and rapid return on investment
through the pricing mechanism. This pressure leads to pricing strategies that are
not clearly customer-valued oriented.

• Flat Price
Users pay a fixed price for limitless usage of software product. This idea
enables customers to more easily know in advance for what they will pay for the
software usage. The fixed price is usually restricted to a specific user or machine.
Many software offerings to the consumer are priced in this manner. Some level
of online support is typically built for a limited time frame. The main
disadvantage to this method is the lack of flexibility in customizing a price for
individual customer based on customers required values. Some customers will
have to pay more than they would like and may be intended to seek better deals .
A fixed-price strategy can be segmented to clasp discounts for large purchasers,
government, and members of preferred buying organizations.

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• Tiered Pricing
Tiered-pricing tries to package software benefits according to user
necessities and their willingness to pay. This idea to pricing is an effort to link
software product costs to detected customer value. IBM is one among the number
one software marketer to make usage of tiered-pricing idea that is based on the
class of processors for its mainframe computers

• User based Pricing

This is another cost-based pricing method that has the tendency to benefit
the vendor more than the user by maximizing license fee revenues. The charge is
based on the user’s count that utilizes a collection of software features over a
given time frame. It tries to assign costs to a specific number of users or
workstations. It is a simple model to work as compared with tiered-pricing based
ideas.

• Value Based Pricing

Software vendors often deal pricing from the requirements to cover costs
and attain profit objectives-often to the loss of their customer relationships. The
circular logic of the cost-based idea where costs sets price and price impacts sales
volume throws into confusion the pricing process. The answer to value-based
pricing favorable outcome is the recognition that the price the customer is willing
to pay depends on the customer’s value requirements, not the vendor's. Buyers
make decision about benefits and prices and select those products that maximize
their perceived value. The objective of valuebased pricing is to provide more
advantageous pricing by gaining control over value. That price should, in turn,
decide the level of product development cost that the customer is willing to occur.

Infosys Technologies has developed a new method of pricing software

maintenance projects to make its revenues more effort-based and less manpower
dependent. The company will start offering clients 'ticket-based pricing' as
opposed to fixed price and time and material-based pricing for software

51
maintenance projects. But if a client has opted for a fixed price model, then even
after the application becomes more stable and the number of requests decreases,
the same price must be paid. Ticket-based pricing will give them the flexibility
to change that and reduce the total cost of ownership. Wipro offers two core
pricing models for implementation:

✓ Pricing Model 1 — capacity-based this model is based on the minimum

capacity required by the client and additional costs to cover the additional
capacity required to fulfil the occasional peaks in demand.
✓ Pricing Model 2 — element-based/object-based Wipro has also established
an element based or component-based pricing mechanism to deliver services
from the factory. For example, if the factory has been set up to deliver SAP
reports, interfaces, customizations, enhancements, and forms, Wipro can
provide the price for delivering each of the components. Wipro also offers
outcome-based pricing and sees that a clear direction is to move to a business-
linked pricing model. Some examples are fixed plus outcome based.

2.6 PROSPECTS AND CHALLENGES IN THE INDUSTRY

The IT industry in India employed around 4 million people in 2017,

up 170k from the previous year. Much of the employment is concentrated
at the large firms. For example, Tata Consultancy Services (TCS) employs
over 275k people, and Infosys employs 156k.

According to the National Association of Software and Services

Companies (NASSCOM), the IT sector in India only grew by 5% in 2018.
Furthermore, hiring rates have decreased by around 40% in the last three
years. This slowdown is being felt by even the leading IT companies, who
are starting to lay off employees. For instance, Wipro has dropped 600
employees, Cognizant has cut at least 6,000 jobs, Tata Teleservices fired
500-600 employees, and Aircel handed pink slips to more than 700
employees.
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2.6.1 PROSPECTS IN THE IT INDUSTRY
India is the topmost offshoring destination for IT companies across
the world. Having proven its capabilities in delivering both on-shore and
off-shore services to global clients, emerging technologies now offer an
entire new gamut of opportunities for top IT firms in India. Export revenue
of the industry is expected to grow 7-9 per cent year-onyear to US$ 135-
137 billion in FY19. The industry is expected to grow to US$ 350 billion
by 2025 and BPM is expected to account for US$ 50-55 billion out of the
total revenue.

The global sourcing market in India is continuing to grow at a faster

pace. The global IT services industry is currently going through a transition
phase from traditional to digital transformations like cloud computing,
analytics, artificial intelligence and IoT. India is the leading sourcing
destination across the world, with about 55 per cent market share of the
$200 billion global services sourcing business in 2017-18.

AT FUTURE

• Digital transformation is a huge opportunity

These business transformations are creating a huge opportunity for IT

services companies. Nasscom projects the size of digital transformation
businesses at around $470 billion by 2023. The markets are likely to grow
at a CAGR of 18.5 per cent over next five years. The industry’s exports
increased to $126 billion in FY18 while domestic revenues rose to $41
billion. Indian IT sector's core competencies and strengths have attached
significant investment from major countries.

• Higher investment to help build robust infrastructure

Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra are
diversifying offerings and showcasing leading ideas in cloud computing

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and artificial intelligence to clients using innovation hubs and research &
development centres in order to create differentiated offerings.
✓ By 2022, India’s digital economy has the potential to reach US$ 4
trillion, as the Indian Government estimate it US$ 1 trillion.
✓ By 2025, Indian IT and BPM industry is expected to grow to US$ 350
billion, and BPM is expected for US$ 50-55 billion out of the total
revenue.
✓ By 2026, E-commerce market in India is set to grow US$ 200 billion
gross merchandise values by 30% annually.
✓ Also, the government has set up a Rs 5,000 crore fund for realizing the
potential of these champion service sectors. As a part of Union Budget
2018-19, Niti Aayog is going to set up a national-level program that
will enable efforts in artificial intelligence and will help leverage AI
technology for development works in the country.
2.6.2 CHALLENGES IN THE IT INDUSTRY

• H1-B Visas
The H1-B visa is a program that allows companies based in the US
to temporarily employ highly skilled professions from other countries. This
year, the Trump administration changed the policy of issuing H1-B visas.
Unfortunately, the new 41 procedure makes it difficult for companies to
prove that the H1-B worker comes with specific and non-speculative
qualifying assignments in a certain occupation.
According to the USCIS (US Citizenship and Immigration Services),
nearly 75% of H1-B visa holders are Indian citizens.
The new H1-B policy is negatively impacting the IT industry in
India and people looking to find jobs in the US. There are several small
and medium enterprises in India that rely on the US market and H1-B visa.

54
 Also, the new policy states that the minimum salary of an H1-B visa
holder should be a minimum of $130,000. Given this high salary,
understandably, a lot of companies in the US now opt to hire Americans.

• Economic Slowdown

The IT Industry in India draws most of its clients from Western

countries like the US, the UK, Spain, and Canada. In the last few years,
these Western countries have faced slowing economic growth, which has
hurt the growth of the IT industry in India.

• Data protection and privacy rules

The new data protection and privacy rules enforced by other

countries are preventing Indian companies to serve in those countries. For
example, the European Union’s GDPR (General Data Protection
Regulation) law that became effective in May 2018. GDPR is applicable
to all the companies that operate in the EU or have their customers in the
region – any company that deals with the personal data of European
customers need to comply with GDPR rules.

Since not all the IT companies in India can comply with GDPR and
other data protection rules, many had to stop serving EU customers. As
mentioned above, most of the clients of the Indian IT industry are from
Western countries, and many clients are choosing development options
closer to home. GDPR is preventing some India tech companies from
working with European clients.

• Domestic Challenges

Today, traditional business models have become outdated. It is the

era of digital transformation, where companies around the world are
embracing modern technologies like cloud computing, artificial

55
intelligence (AI), the Internet of Things (IoT), and block chain. These
technologies help them reduce costs, accelerate time to market, save time
and increase employee productivity. However, Indian organizations are
slow in adopting these technologies. They are still stuck with the traditional
models. This is because of the lack of skilled employees, conventional
infrastructure, as well as restrictive regulations.

In India, more than 400,000 students graduate every year. Yet, only
20% of them get employment. This is because the universities and colleges
are focused on providing degrees rather than enhancing student skills. This
has created a gap between the supply and demand.

• Negative reputation around the world

India’s IT giant, TCS was slammed by a penalty of $420 million by

the US court in April 2016. The US-based company Epic Systems had
accused TCS of stealing trade secrets, confidential information and data
that belonged to Epic.

Infosys paid a penalty of $1 million for violating the visa and

immigration rules in the US. The company was accused of employing
foreign workers in New York without paying taxes and wages. TCS and
Infosys are the pillars of the IT industry in India. Such incidents negatively
impact the image of the Indian IT industry in the global market.

2.7 KEY DRIVERS IN THE INDUSTRY

IT Sector to Be Driven By the Strong Demand and Indian Expertise

♦ Global BPM spending estimated to rise and reach to US$ 233 billion by
2020.
♦ Tax holidays for STPI and SEZs.

56
 ♦ More liberal system for raising capital, seed money and ease of doing
business.
♦ In the Interim Budget 2019-20, the Government of India announced
plans to launch a national programme on AI* and setting up of a
National AI* portal.
♦ Government of India has identified Information Technology as one of
the 12 champion service sectors for which an action plan is being
developed. Also, the government has set up a Rs 5,000 crore
(US$ 745.82 million) fund for realising the potential of these champion
service sectors.
♦ Nasscom has launched an online platform which is aimed at up-skilling
over 2 million technology professionals and skilling another 2 million
potential employees and students. Strong mix of young and
experienced professionals.
♦ IT service giant DXC Technology has decided to set up its first global
analytics unit in Bengaluru to leverage the skill set that India offers.
♦ Increasing adoption of technology and telecom by consumers and
focused government initiatives leading to increased ICT adoption.

Export to Remain Robust as Global IT Industry Maintains Growth

✓ Export revenue from the industry has grown at a CAGR of 12.25 per
cent to US $ 126 billionin FY18 from US$ 50 billion in FY10.
✓ Total export revenue of the industry is expected to grow 7-9 per cent
year-on-year to US$ 135-137 billion in FY19.

Digital Exports to Be a Major Growth Driver.

♦ Global digitals spend is expected to increase from US$ 180billion in 2017

to US$ 310 billion by 2020.

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 ♦ India’s IT industry is increasingly focusing on digital opportunities as
digital is poised to be a major segment in the next few years. It is also
currently the fastest growing segment, growing over 30 per cent annually.
♦ Export revenue from digital segment already forms about 20 per cent of
the industry’s total export revenue. The figure was estimated at US$ 22-25
billion in FY18.
♦ Revenue from digital segment is expected to comprise 38 per cent of the
forecasted US$ 350 billion industry revenue by 2025.

India has become the digital capabilities hub of the world:

✓ More than 8,100 firms offer digital solutions.

✓ Digitally skilled talent pool of 450,000-500,000.
✓ 75 per cent of global digital talent in India.

Indian Talent Pool Ready To Take IT Sector To Next Level

• Availability of skilled English-speaking workforce has been a major reason

behind India’s emergence as a global outsourcing hub.
• The number of engineering graduates has increased from 651,000 in 2013 to
an estimated 779,000 in 2017 and is further expected to grow to 802,000 by
2020. Indian IT industry is expected to add around 250,000 new jobs in 2019.
• Employment in the sector reached 3.97 million in 2017-18. An addition of
around 105,000 was witnessed in FY18. Online hiring activity in IT software
sector increased 28 per cent year-on-year.
• India BPO promotion scheme was approved under Digital India programme.
It aims to create employment opportunities for the youth and promote
investments in the IT&ITeS industry. Under the scheme employment has
already been created for more than 10,000 individuals.
• India’s top 10 Information technology companies added about 114,390
engineers to its workforce in 2018 against 22,156 in 2017.

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SEZs to Drive It IT Sector; Tiers II Cities Emerge As New Centres

• IT-SEZs have been initiated with an aim to create zones that lead to
infrastructural development, exports and employment.
• As of January 22, 2019, there were 231 exporting SEZs across the country.
• Over 50 cities already have basic infrastructure and human resource to support
the global sourcing and business services industry. Some cities are expected
to emerge as regional hubs supporting domestic companies.
• Software Technology Parks of India (STPI) has set up 57 centres across the
country which provide single window clearance and infrastructure facilities.
Under STP scheme, STP units can avail Excise Duty exemptions on
procurement of indigenously manufactured goods.

2.8 STALWARTS IN THE INDUSTRY

2.8.1 STALWARTS IN THE INDIAN IT INDUSTRY
• Tata Consultancy Services – CEO Mr. K. Krithivasan
Mr. K. Krithivasan in June 2023 accepted the role of Chief
Executive Officer and Managing Director of Tata Consultancy Services
(TCS), a leading global IT solutions and consulting firm. Before his
appointment as CEO, he was the President and Global Head of the Banking,
Financial Services, and Insurance (BFSI) Business Group, overseeing a
portfolio valued at approximately $11 billion. Under Mr. Krithivasan's
stewardship, TCS has continued its legacy of growth and innovation,
navigating the complexities of the global IT services landscape. His
leadership is characterized by a strategic focus on client-centric solutions,
operational excellence, and fostering a culture of continuous improvement.
• Infosys – CEO Narayana Murthy
Mr. Murthy founded Infosys in 1981. Infosys is, today, a highly-
innovative software services global company listed on NYSE in the US
and on the Bombay Stock Exchange in Mumbai. Mr. Murthy
conceptualized, articulated and implemented the Global Delivery Model
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 (GDM) which has become the backbone of the Indian software industry.
GDM is based on collaborative distributed software development
principles and has resulted in the delivery of superior quality software to
global customers delivered on time and within budget. Mr Murthy also
introduced the concept of 24-hour work day to the world.
Under Mr. Murthy’s leadership, Infosys became the leader in
innovation in technical, managerial and leadership training, software
technology, quality, productivity, customer focus, employee satisfaction,
and physical and technological infrastructure.
Infosys contribution to the growth of IT industry has been immersed
and “The Time” magazine described him as the “father of IT sector”. He
has led key corporate governance initiatives in India .He is an IT advisor
to several Asian countries .He has been honoured with several awards for
his contribution to IT sector in India. NR Narayana Murthy’s greatest
contribution to Indian business is not the creation of Infosys .One of the
India’s most successful companies .It is the creation of a “possibility” that
people from humble backgrounds can create multibillion-dollar companies
only on the basis of a vision, passion and hard work.
Salil Parekh is a current CEO of Infosys, he has served with
commitment and integrity to deliver a major business transformation in the
large, complex organization. Over the past two years, those who have
worked with him know that he operates with inclusiveness and have no
tolerance for divisiveness of any form.
• Wipro – CEO Srini Pallia
Srini Pallia was appointed to this role in April 2024, he has been
with Wipro for over three decades, having joined the company in 1992.
Throughout his tenure, he has held various leadership positions, including
President of Wipro’s Consumer Business Unit and Global Head of
Business Application Services. Most recently, he served as the CEO of
Americas 1, Wipro’s largest and fastest-growing strategic market, where

60
he led a wide range of industry sectors and was responsible for establishing
their vision, as well as shaping and implementing growth strategies.
• HCL Technologies – CEO C Vijayakumar
C Vijayakumar (CVK or Vijay) is the President & Chief Executive
Officer of HCL Technologies, a US$ 9.94 billion global technology
company. Led by 149,000+ professionals working across 46 countries
across the globe, HCL helps forward looking enterprises re–imagine their
businesses through transformative Technology Solutions and Services. As
the company’s CEO, Vijay has spearheaded HCL’s initiatives to leverage
the transformative nexus of forces like Digitalization, Internet of Things,
Cloud, Cyber security and Artificial Intelligence through a strategic
blueprint called ‘Mode 1-2-3’. His very recent efforts on adding products
and platforms to the company’s portfolio have already resulted in a billion-
dollar run-rate for the business, the fastest acceleration of its kind in the
industry. Vijay joined HCL nearly 25 years back as a member of the core
team that designed and implemented India’s first ever fully automated
trading network at the National Stock Exchange. With a strategic vision
and global outlook, he relentlessly reinvented himself to emerge as a leader
who could span a breadth of technologies and deftly navigate the shifting
industry landscape.
2.8.2 STALWARTS IN THE IT INDUSTRY IN GLOBAL
PERSPECTIVES
• Google – CEO Sundar Pichai
India-born Sundar Pichai was named as Google CEO on August
10, 2015. He is responsible for the launch of the dominant Chrome web
browser, and was previously the product head for Android, Chrome,
Maps, and other popular Google products.
Google hired Pichai in 2004 to lead development of Google
Toolbar and then Google Chrome. At the company's I/O developer
conference in 2011, he launched the Chrome OS and Chrome book to

61
 much fanfare. In 2013, Pichai became the leader of the Android
operating system, which powers smartphones worldwide. In 2014, he
was appointed to lead product and engineering for all of Google's
platforms, which included search as well as applications such as maps,
Android and Gmail. Pichai was announced as the CEO of Google in
2015, when the company was reorganized into Alphabet. He became
the CEO of Alphabet in December 2019.
• Adobe – CEO Shantanu Narayen
Shantanu Narayen is chairman, president and chief executive
officer of Adobe, one of the largest and most diversified software
companies in the world.
Adobe’s mission is to change the world through digital
experiences, serving a large customer base from students to business
communicators to the world’s largest enterprises. As CEO, Shantanu
has transformed the company into an industry innovator by pioneering
a cloud-based subscription model for its creative suite, establishing the
global standard for digital documents and creating and leading the
explosive digital experience category. Today, he’s driving the
company’s strategy to unleash creativity for all, accelerate document
productivity and power digital business. Under Shantanu’s leadership,
Adobe has achieved record revenue and industry recognition for its
inclusive, innovative and exceptional workplace, including being
continuously named a Great Place to Work and a Most Admired
Company by Fortune.
• Microsoft – Satya Nadella
Satya Nadella is Chief Executive Officer of Microsoft. Before
being named CEO in February 2014, Nadella held leadership roles in
both enterprise and consumer businesses across the company. Joining
Microsoft in 1992, he quickly became known as a leader who could

62
span a breadth of technologies and businesses to transform some of
Microsoft’s biggest product offerings.
Most recently, Nadella was executive vice president of
Microsoft’s Cloud and Enterprise group. In this role he led the
transformation to the cloud infrastructure and services business, which
outperformed the market and took share from competition. Previously,
Nadella led R&D for the Online Services Division and was vice
president of the Microsoft Business Division. Before joining Microsoft,
Nadella was a member of the technology staff at Sun Microsystems.

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Competitor Analysis of Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS), a global leader in IT services, consulting,

and business solutions, operates in an intensely competitive industry
characterized by rapid technological change, evolving client demands, and digital
disruption. While TCS holds a strong position due to its scale, delivery excellence,
and financial stability, it competes with both global and domestic players across
various service segments.

1. Primary Global Competitors

Headqua Revenue (FY

Company Key Strengths TCS Comparison
rters 2024)
Deep consulting TCS has a broader
expertise, cloud and delivery model, but
Accenture Ireland ~$65 billion AI capabilities, strong Accenture leads in
North American high-margin
presence consulting services
Strong digital TCS has larger scale
capabilities, cost- and stronger brand
Infosys India ~$19 billion effective delivery, trust; Infosys is more
innovation in agile and aggressive
automation in R&D
TCS has a more
Strong healthcare and
global delivery
Cognizant USA ~$18 billion BFSI verticals,
footprint and higher
American client base
margins
Cloud, cybersecurity, TCS is more
and engineering consistent in
Wipro India ~$11 billion
services; aggressive performance and
acquisitions margin stability
Legacy enterprise TCS offers lower-cost
IBM Consulting ~$19 billion
USA client base, hybrid delivery and greater
(ex-IBM GBS) (consulting)
cloud and AI focus scalability

64
2. Key Competitive Dimensions

Dimension TCS Position Comparative Analysis

Larger than Infosys and Wipro,
Revenue & Scale Among top 3 globally close to IBM Consulting, behind
Accenture
Higher than most peers due to
Profit Margins Industry-leading (OPM ~23-25%) efficient delivery and lower
attrition
Very high, with many long-term Stronger client loyalty compared to
Client Retention
contracts Cognizant and Wipro
Accenture leads in digital
consulting, but TCS is catching up
Digital & Cloud Services Rapidly expanding
through investments in AI, cloud,
and partnerships
Comparable to Infosys and
Global Delivery Network One of the most extensive globally superior to Cognizant in terms of
scalability
Infosys and Accenture invest more
Innovation & R&D Moderate focus in cutting-edge R&D and
innovation hubs
TCS leads in talent retention and
training (e.g., through iON,
Talent & Workforce Over 600,000 employees globally
Elevate, and internal upskilling
platforms)

3. Strategic Advantages of TCS

➢ Financial Stability: Debt-free with strong cash reserves and consistent

dividend payouts.
➢ Brand Equity: Strong perception in global markets, especially in BFSI
and retail verticals.
➢ Operational Efficiency: Industry-best operating margins and delivery
excellence.
➢ Client Base: Large, diversified portfolio with over 1,000 active clients,
including Fortune 500 companies.

65
4. Challenges and Emerging Threats

• Attrition & Talent Costs: Rising wage inflation and employee retention
pressures.
• Digital Transformation Race: Competitors like Accenture are ahead in
high-margin digital consulting.
• Geopolitical & Regulatory Risks: Exposure to U.S. and European
markets makes TCS vulnerable to visa, tax, and data regulations.

Conclusion

TCS maintains a leadership position in the global IT services market

through its scale, delivery excellence, and robust financials. While companies like
Accenture and Infosys challenge TCS in consulting and innovation, TCS’s
operational discipline, diversified service portfolio, and long-standing client
relationships provide a sustainable competitive edge. To stay ahead, TCS is
increasingly investing in digital technologies, generative AI, and outcome-based
services, ensuring continued relevance in a rapidly evolving industry landscape.

66
 OBJECTIVES OF PROJECT

The primary objective of the summer internship at Tata Consultancy

Services (TCS) was to gain practical exposure to the financial operations,
planning processes, and strategic decision-making functions within a leading
global IT services organization. As part of the MBA Finance curriculum, the
internship aimed to bridge the gap between theoretical financial concepts and
their real-world applications in a corporate setting.

Specifically, the internship was designed to achieve the following objectives:

1. Apply Financial Concepts in Practice

To implement key financial management principles—such as budgeting,
forecasting, cost analysis, and working capital management—within a live
business environment.
2. Understand Corporate Financial Structure
To gain an in-depth understanding of TCS’s financial systems, reporting
structure, and how financial data is used to support strategic business decisions
across functions and geographies.
3. Analyze Financial Performance
To conduct performance and variance analysis of business units and contribute
insights for improving operational efficiency and profitability.
4. Support Strategic Finance Initiatives
To participate in finance-related strategic initiatives, including resource
optimization, investment planning, or financial modeling, aligned with
business growth and transformation objectives.
5. Leverage Financial Tools and Technology
To develop proficiency in financial analysis tools such as Microsoft Excel,
Power BI, SAP, and internal TCS platforms used for budgeting and reporting.

67
6. Enhance Decision-Making and Presentation Skills
To effectively communicate financial insights and recommendations to senior
management through structured reports and presentations.
7. Gain Exposure to the IT Services Industry
To develop a macro-level understanding of the IT services and consulting
sector, including market trends, competition, revenue models, and financial
challenges.

This internship was not only an opportunity to strengthen technical

financial skills but also a platform to build strategic thinking, cross-functional
collaboration, and business acumen—critical attributes for a successful career in
corporate finance or financial strategy roles.

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 Research Methodology

The research methodology adopted for the summer internship at Tata

Consultancy Services (TCS) was designed to provide a structured approach to
problem-solving and data analysis, ensuring that conclusions and
recommendations were grounded in both qualitative and quantitative insights.
The methodology consisted of primary and secondary research, supported by
analytical tools and business frameworks relevant to finance and strategic
decision-making.

1. Research Design

The internship project followed a descriptive and analytical research

design, aimed at understanding existing financial processes and identifying
opportunities for efficiency and improvement. The focus was on collecting and
analyzing financial data to support actionable recommendations for business
impact.

2. Data Collection Methods

Primary Data:

• Stakeholder Interviews: Conducted structured discussions with finance

managers, business analysts, and cross-functional team members to
understand existing processes, key challenges, and expectations.
• Internal Financial Reports: Accessed real-time data through TCS's
internal ERP systems (e.g., SAP) for budgeting, cost tracking, and financial
performance evaluation.
• Observations: Participated in internal review meetings and business unit
discussions to gain contextual understanding of financial decision-making.

Secondary Data:

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 • Company Reports: Reviewed annual reports, investor presentations, and
quarterly earnings to understand TCS’s financial performance, capital
allocation strategy, and market positioning.
• Industry Reports & Journals: Sourced industry insights from Gartner,
NASSCOM, Deloitte, and McKinsey to benchmark TCS against
competitors.
• Academic Resources: Referred to MBA finance textbooks and research
papers for theoretical frameworks, including cost analysis, financial ratios,
and valuation techniques.

3. Tools and Techniques Used

✓ Microsoft Excel: For financial modeling, ratio analysis, and data

visualization.
✓ Power BI / Tableau: For dashboard creation and performance tracking.
✓ SAP ERP: For real-time financial data extraction and analysis.
✓ SWOT & Porter’s Five Forces: Used to support industry and competitor
analysis.
✓ Trend & Variance Analysis: To compare budgeted vs. actual
performance and identify areas of concern.

4. Scope of Research

The research was limited to the specific finance function within TCS and focused
on:

♦ Cost optimization
♦ Financial performance analysis
♦ Business unit-level reporting
♦ Industry benchmarking

5. Limitations

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 • Limited access to confidential financial data due to organizational data
protection policies.
• Time constraints of an 8-week internship limited the depth of primary
research and broader validation.
• Focus was limited to specific departments or regions, which may not
represent TCS’s global financial operations in entirety.

INDUSTRY ANALYSIS – PORTER’s FIVE FORCES MODEL

3.1 PORTER’s FIVE FORCES MODEL FOR IT INDUSTRY

porter’s Five Forces analysis, following directly from the positioning of strategy
is clearly one of the most popular and powerful tool for anyone to understand the
factors affecting profitability in any industry and how then should an organization
position itself to attempt to maximise profitability. Building on the framework,
they add variables that affect the IT Industry landscape and headwinds that shape
the future of the industry.

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❖ Existing competition:

The IT Industry landscape is characterized by intense completion for

conventional IT services: Application Development & Maintenance, IT
Infrastructure Management Services, Network Management Services, Data-
center Services etc. leading therefore to commoditization. There are several firms
in the market offering similar services and it is difficult to differentiate based on
these service offerings. The existing competition comes from both domestic
players (Infosys, TCS, Wipro, HCL technologies, Tech Availability of
Substitutes Existing competition Bargaining Power of Suppliers Bargaining
Power of Customers Threat of New Entrants Mahindra, Mindtree and so forth)
and international ones (IBM, Accenture, Capgemini, Cognizant and so forth).

It is in the context of non-conventional services, i.e. the ones focused

(Digitization) on emerging technologies and trends such as Analytics, Cloud
computing, Social Media, Enterprise Mobility, Internet of Things etc. where the
opportunity for differentiation through niche-specialization occurs. Another
argument might be for industry-vertical specialization but the major buyers (in
terms of Industries) for instance Banking & Financial Services (BFSI),
Manufacturing, Energy & Utilities etc. are well catered to and it would be easier
to think of IT companies as portfolios of verticals (across clients) especially when
considering growth potential (with the growth in an industry benefiting the IT
service provider that draws most revenues from the industry in question). Vertical
specialization therefore will only be beneficial for industries going through rapid
change (Telecom for instance) or through rapid growth caused by external factors
like government regulation.

❖ Bargaining power of customers:

For conventional IT services, bargaining power of the buyer is large and

the possibility of pressure on rates exists. The buyer, having worked with both
with international IT providers as well as Indian ones is largely the price setter
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and has negated (to a large extent) the offshore advantages through mature
procurement and global delivery. The international IT firms too have negated the
advantage enjoyed by Indian IT companies through captive centres in India and
globally. In this industry, in case of conventional IT services, the buyer is king.

In case of non-conventional services, i.e. those that cater to emergent

technologies and technology trends (in Data Analytics or Enterprise Mobility for
instance) there is potential for differentiation and higher margins. Also this is the
case for nonconventional, partnership-style engagements where both risk and
rewards are higher.

❖ Bargaining Power of Suppliers:

The bargaining power for suppliers is very low and since high
standardization exists, there is little scope of suppliers having any clout. The
suppliers consists of IT Infrastructure providers (Servers, computers etc.),
Recruitment firms, Office Space Suppliers etc.

❖ Threat of New Entrants:

In context of the highly commoditized IT services, there is little threat of

new entrants. That said, the Industry is also characterised by high people
dependence and therefore can see veterans detach from existing companies to
invest in new ventures. An example of this is Happiest Minds, which was started
by a co-founder of an existing IT provider. The newer technologies allow the
possibility of new niche players that are not dependant on size or experience
constraints.

❖ Availability of Substitutes:

There are no substantial substitutes to IT services apart from Internal IT

departments, which have lost clout over the years and are ever thinner in numbers
and significance. One argument for internal IT is retaining control over pertinent

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aspects of business but the argument against would be since the main business of
the company is not IT services, it should outsource as much as possible and focus
on future growth in core areas. Over time there has been a steady decrease in in-
house IT development and maintenance with more and more being outsourced
and the internal IT staff has settled into a supervisory (program management) role.

This has been a mixed bag for newer services as well since internal
specialization is very low, most of the work is outsourced. For critical areas,
governance has been retained in house and this trend seems to have found favor
with most large enterprises worldwide. Broadly speaking the market for
conventional services is highly commoditized with potential for differentiation
concentrated around niche expertise in new technologies and trends (SMAC +
Internet of Things) and around non-conventional engagements (revenue/profit
share, risk-reward models). It is unlikely that the market for conventional services
will vanish overnight, but the future promises to hold a highly modified view.

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 DATA ANALYSIS

Market size of Indian IT Industry is advancing and showing significant

growth.

The growth of the IT industry in India is unprecedented across the

economies of the world. All the sub-sectors of this industry (hardware products
have relatively seen less progress) have made strides in revenue growth in the last
two decades and fueled the growth of the Indian economy. The rapid
advancement within the IT industry and liberalisation policies such as reducing
trade barriers and eliminating import duties on technology products by the
Government of India are instrumental in the growth of this industry. Also, various
other government initiatives like setting up Software Technology Parks (STP),
Export Oriented Units (EOU), Special Economic Zones (SEZ) and foreign direct
investment (FDI) have helped this industry in achieving a dominant position in
the world IT industry.

In the present time, when the COVID-19 pandemic has grappled the whole
world and economies have been hard hit. Indian IT industry is still showing
positive signs and has the resilience to overcome this unprecedented tragedy. It
has emerged as a global economic force and a major contributor to the Indian
economy in particular and the world in general. This article tries to outline how
the Indian IT industry has evolved over the years and its prominent role in
boosting Indian’s growth.

Tata Consultancy Services

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 Tata Consultancy Services is an IT services, consulting and business
solutions organization that has been partnering with many of the world's largest
businesses in their transformation journeys for over 50 years. India's largest
multinational business group, TCS has over 448,000 of the world's best-trained
consultants in 46 countries. The company generated consolidated revenues of US
$22 billion in the fiscal year ended March 31, 2020, and is listed on the BSE
(formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in
India.

TCS' Response to Covid-19

Ensuring Business Continuity for Customers TCS works with more than 1,000
organizations across the world, helping keep their systems and operations up and
running. The company's software and solutions power the financial backbones of
several countries. It runs the technology for some of the largest health care and
pharmacy companies, retailers, telcos, utilities, governments and public services
organizations – whose continued functioning is all the more critical during times
of crisis. In response to the lockdowns, the company launched a massive program
to ensure business continuity of its services using its Secure Borderless
Workspaces model, which allows TCS associates to work remotely from the
safety of their homes, while continuing to provide uninterrupted support services
to their customers.

4.1.1Performance Trends

Analysis of revenue growth

• TCS has historically grown much faster than the market. In the latest five-
year period, while the market for IT-BPM services expanded by a CAGR
of 2.4% (IT Services CAGR: 2.3%), TCS had a CAGR of 7.3% in USD
terms.

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 • One reason for the outperformance is market share gains on account of
superior capabilities, better execution, higher customer satisfaction and
greater participation in their customers’ growth and transformation spends.

• On a reported basis, TCS’ revenue grew 7.2% in FY 2019 -2020, compared to

19.0% in the prior year. Much of the year on year deceleration is on account
of the lesser currency benefit received in FY 2019 -2020 (7.6% currency
benefit in FY 2019 vs 0.1% benefit in FY 2020). Additionally, there was
volatility in demand in the financial services and retail verticals.

Vertical Wise Revenues

TCS considers industry verticals as its go-to-market business segments.

The five key vertical clusters are: Banking, Financial Services & Insurance
(BFSI) with 39%, Retail and Consumer Business with 17%, Communications
Media and Technology (CMT) with 17%, Manufacturing with 10% and others
with 17%. The revenue break-up by Industry

Vertical is given below.

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Geography wise revenues

The company derives revenue of 52.2% from America, 30.6% from Europe, 5.7%
from India and 11.5% from others so, TCS derives majority of its revenues from
clients based outside India and accordingly over 95%of its revenues are realized
in foreign currencies. If the economy in these countries continues to be volatile
or deteriorate, this can have adverse impact on the revenue.

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Market leadership

• The market capitalization of TCS is 752428.18 Cr, while market

capitalization of Infosys is 301225.40 Cr.
• According to the market cap, TCS is India’s second largest company after
Reliance Industries Ltd.

Employee Attrition

• Over the years attrition rate has decreased dramatically in 2016 TCS
attrition rate was 14.4% but now 2020 attrition rate is 12.1%. TCS had a
net addition of 24,179 employees globally, taking its total employee count
to 448,464 and their attrition rate is 12.1% in FY 2020

Investors

TCS is seen as a benchmark in transparency and disclosures, publicly

communicating its longer-term strategy, qualitative aspects of the demand
outlook, risks and opportunities. The company has a robust investor outreach
program through which it engages with a broad range of investors domestically

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and overseas. These efforts towards removing information asymmetries and
helping investors arrive at a fair valuation of the company’s stock have resulted
in TCS topping various regional investor polls conducted by publications such as
Institutional Investor, FinanceAsia and AsiaMoney.

Brand Value

According to Brand Finance, TCS’ brand value grew 476% from 2010-
2020, the highest percentage growth in the IT services industry; year-on-year
brand value grew from $12.8bn to $13.5bn in FY 2020, making TCS the fastest
growing among the top three IT services brands for the second year running.

Market Capitalization

In terms of market capitalization, TCS dominates with Rs. 750,177 crores.

Whereas Infosys, HCL, Wipro, Tech Mahindra generated market capitalization
of 3,00,557 ,1,46,497, 1,13,896 and 51,011 crores respectively. Figure is given
below.

Employee Attrition

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 Employee attrition of top IT companies is given below. Here TCS has low attrition
rate as compared to their competitors like Infosys, HCL, and Wipro.

Specific Learning Outcomes

1. From this project I have learned about history and overview of TCS, IT
and ITesindustry as well.
2. Understand the role of Information Technology in India and its
contribution to Indian economy.
3. Able to understand about the business process of IT industry and their
verticals.
4. Analyse the demand and supply conditions and how they affect the
industry’s growth.
5. Understand how prices are determined by the companies in the industry
and the strategies they are adopt.

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6. Understand the major challenges faced by the Indian IT industry and their
future prospects.
7. Know about the Key personalities and top performing companies in the
IT industry.
8. Study about the impact of COVID -19 in IT industry and how it may lead
to the digital transformation.
9. Analyse in detail about the industry using porter’s 5 forces model.
10. Understand the products and services offered by the TCS.
11. Understand the operations and business process of the TCS.
12. Identified major competitors of TCS by analyze their market
capitalization and performance.
13. Analyse various strategies like management strategies, pricing strategies
and business strategies of TCS.
14. Understand the CSR activities performed by TCS and their contribution
to society and commitment to the environment.
15. Analyse the organization SWOT analysis (strength, weakness,
opportunities and threats).
16. Assess the organisation and industry in an objective manner.

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 Observation and Findings

SUMMARY OF FINDINGS

Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading global IT
services, consulting and business solutions organization, reported its consolidated
financial results according to Ind AS and IFRS, for the quarter and financial year
ending March 31, 2020.

1. TCS has over 448,000 of the world's best-trained consultants in 46 countries.

The company generated consolidated revenues of US $22 billion in the fiscal
year ended March 31, 2020.
2. In FY 2020, TCS delivered revenue of `156,949 crore, growing 7.2% over the
prior year in reported terms, and 7.1% in constant currency terms.
3. In the wake of nation-wide lockdowns of schools and colleges, TCS offered
free access to the TCS iON Digital Glass Room, a virtual learning platform,
to educational institutes across the country.
4. In research and innovation TCS has applied for 5,216 patents, including 210
applied during the quarter, and has been granted 1,341 patents as on March 31,
2020.
5. TCS' Innovation Lab in Hyderabad, India, a team of TCS scientists used deep
neural network-based generative and predictive models to identify 31 new
molecules that hold promise towards finding a cure for COVID-19.
6. TCS hired 24,179 employees on a net basis in FY 2020, taking up the total
headcount to 448,464 as of March 31, 2020. The workforce is young and very
diverse.
7. TCS hiring and heavy investment made to mentor and coach women at all
levels, women currently account for 36.2 percent of the workforce, making
the Company one of the largest employers of women in the world.
8. Ranked 1 in Customer Satisfaction in the Whitelane Research 2019/2020 IT
Sourcing Study, which surveyed more than 1,600 CxOs of the top IT spending
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 organizations in Europe. TCS has been voted to this top spot by customers for
the seventh consecutive year.
9. In FY 2020, TCS successfully completed the surveillance audits for industry
specific quality certifications like AS 9100 (Aerospace Industry), ISO 13485
(Medical Devices) and TL 9000 (Telecom Industry).
10. TCS Performs a wide range of CSR activities like “Impact through
Empowerment” and their main focus areas are Education and Skill
Development, Health and Wellness and Environmental Sustainability. In
addition, TCS has been supporting the restoration of heritage sites as well as
participating in relief operations during natural disasters.

Summary Findings About IT and ITes Industry

The global sourcing market in India continues to grow at a higher pace compared
to the IT-BPM industry. India is the leading sourcing destination across the world,
accounting for approximately 55 per cent market share of the US$ 185-190 billion
global services sourcing business in 2017-18.

Key Findings

• India is the world's largest sourcing destination with largest qualified talent
pool of technical graduates in the world. The country has the low-cost
advantage, being 5-6 times inexpensive than the US. India is the second-
fastest digitising economy among 17 leading economies in the world.
• India’s IT industry contributed around 7.7 per cent to country’s GDP
(Gross Domestic Product) and is expected to contribute 10 per cent to
India’s GDP by 2025.
• The revenue from the digital segment is expected to form 38 per cent of
the total industry revenue by 2025.

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• The computer software and hardware sector in India attracted cumulative
Foreign Direct Investment (FDI) inflow worth US$ 43.58 billion between
April 2000 and December 2019.
• The government of India has extended tax holidays to the IT sector for
Software Technology Parks of India (STPI) and Special Economic Zones
(SEZs). As of February 2020, there were 421 approved SEZs across the
country, with 276 of them from IT & ITeS and 145 as exporting SEZs.
• The Indian IT industry mainly comprises of instance system integration,
software experiments, custom application development and maintenance
network services, IoT services and IT solutions.
• Today, pricing models in the IT industry have matured from the traditional
time & material and fixed pricing models to the modest managed services
or outcome-based models.
• The outbreak of COVID19 hits the IT industry also. But this crisis may
lead to the emergence of a revolutionary digitization which is favourable
to the industry.

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 Conclusion and Recommendations

• According to Economic times, TCS has announced that they will not layoffs
employees nor provide any of the salary hikes to employees for this year because of
covid-19 pandemic. No salary hike will be affect employees productivity negatively
only because of employees hard work and commitment results profit in TCS if they
fail to pay salary hike that may affect employee productivity. At least, TCS should
consider about the stock option for employee.
• Currency volatility in currency exchange movements results in transaction and
translation exposure. TCS’ functional currency is the Indian Rupee. To overcome
this crisis TCS should follow a currency hedging policy that is aligned with market
best practices, to limit impact of exchange volatility on receivables, forecasted
revenue and other current assets and liabilities.
• Risks of cyber-attacks are forever a threat on account of the fast-evolving nature of
the threat. In addition to impact on business operations, a security breach could result
in reputational damage, penalties and legal and financial liabilities. TCS have to
implement innovative and high security methods to avoid the vulnerability in their
security and data protection systems, and in their services. The employees have to
be continuously trained and aware about new cyber security risks and attacks.
• Besides going into new business TCS also strengthen its work force and train them
for expansion. Providing training programme should be future oriented.
• Many countries, especially America, do not encouraging the outsourcing of services
through various protectionary policies like restricting free mobility of technical
work staff etc. This may cause adverse impact on the revenues of the company or
may result in higher costs. So, If TCS hires local people as technical staffs, the
restrictions will not affect them, and free mobility is possible.

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