Tcs Case Analysis

With the rapid growth and evolution in the past few years, many IT companies have to compete against each in other to gain a competitive advantage on their competitors within two categories : Product support and Professional services. Tata Consultancy Services, when taking in account revenues, profits and number of employees,  is the largest IT company in India. In 2007, the company revenues were $4.3 billion USD which consists of a 41% growth from the past year. TCS is planning a marketing campaign to differentiate itself from its competitors thus hoping to reach $10 billion USD in revenues by 2010. The main issue is competition rising as locals and foreign companies are also seeking aggressive growth in which TCS CEO, S. Ramadorai, sees it as a challenge to keep a sustained profitable growth.

External analysys

 PEST Analysis

Political

Regulations and laws are different across countries, which adds a constraint to companies. Public opinion also plays a role in the equation. People from Western countries share a concern about having their personal information in the hand of countries like India because of illegal sales of people personal information.

Economic

The IT industry represents 5.2% ($39.6 billion) of the Indian GDP. Since labor costs are lower in India than in other countries, companies look to offshore their operations to India to lower costs. 65% of offshoring, in the global IT industry, is in India. Globally, the IT industry was valued at $628 billion in 2005, and it’s expected to be between $825-875 Billion in 2010.

Socialcultural

In the U.S., there was a decrease of 28% of computer science degrees obtained (2004-2006) , while demand for jobs in IT is forecasted to increase 25-50% from 2004-2014. Different cultural backgrounds create barriers, like a language barrier. 28% of the worldwide intelligence is in India, which makes it the largest in the world.IT is becoming a trend, in India alone, there’s 1.6 million employee.

Technological

Internal analysis

VRIN

Valuable:  We should consider TCS resources to be valuable considering their 5 executives have been with the company for more than 20 years which brought experience, continuous growth and development. TCS possess technical capabilities and pricing models that gives them an edge over their competition. TCS invested throughout the globe and consequently gave them access to a larger pool of clients from different industries.