BCOM-II ASSIGNMENT-II

TCS: Market Leader of Indian IT-ITeS Industry

Submitted to: Mr. S. K. Gupta
Parth Bhatt, Ravil Patel, Shikha Singh, Sohan Chowdhur !"#!$#"% !"

Submitted

By: Parth Bhatt !"#!#"$"% &a'i( Pate( !"#!#"$$% Shikha Sin)h !"#!#"*#% Sohan Cho+dhury !"#!#"*,%

TCS: Market Leader of Indian IT-ITeS Industry

#!-#.-!"# !

Parth Bhatt, Ravil Patel, Shikha Singh, Sohan Chowdhury

This report is submitted as a part of industry ana(ysis pro/e0t of the 0ourse 1Business Communi0ation23 under the )uidan0e of Prof. San/ay Gupta3 in Post Graduate Pro)ramme in 4ner)y 5 Infrastru0ture at S0hoo( of Petro(eum Mana)ement3 P6P73 Gandhina)ar.

&e0ei'er: T84 84963

Corporate Trainin) 5 8&63 Tata Consu(tan0y Ser'i0es.

A&'tra(t)
TCS is the leading company in the Information Technology (IT industry with !ipro, "C# and Infosys as other ma$or players% It contri&utes a lot to the Indian economy% Return on Capital employed &y TCS is 'uite high than the industry norm which indicates its efficiency of investment utili(ation% Till now TCS has given more importance to e)pansion &y ac'uisitions% *e&t is (ero in &oth (Infosys + TCS companies leading it to highly unlevered organi(ation% TCS comprises of the ma)imum market share followed &y Infosys &ut the scenario is different in terms of lia&ilities and inventories handled &y &oth the companies% !hile in the latter part Infosys emerges as the leader with (ero inventory and higher current ratio which implies its efficient resource utili(ation% !hile &oth companies are still to reach the industry &enchmark in terms of assets and sales TCS emerges as the leader in &oth% ,anpower utili(ation is &etter done &y TCS whereas also funds allocated for R+* and charity is higher in case of Infosys where TCS lags &ehind% To remain stick to its top position TCS needs to do its part in R+* which is the demand of moment%

Content'
#. Introdu0tion : ................................................................................................................................... * #.#. Ba0k)round .............................................................................................................................. * !. Industry Profi(e ................................................................................................................................ . !.#. &e0ent Trends .......................................................................................................................... : !.!. 7p0omin) Trends..................................................................................................................... ; ,. Tata Consu(tan0y Ser'i0es Limited ................................................................................................... < ,.#. Company Profi(e ..................................................................................................................... < ,.!. Gro+th ....................................................................................................... ## ,.,. S=>T 9na(ysis ....................................................................................................................... #! $. Infosys Limited........................................................................................................................ ....... #! $.#. Company Profi(e ................................................................................................................... #, $.!. Gro+th ....................................................................................................... #$ *. Comparison ................................................................................................................................... #$ *.#. ?inan0ia( indi0ators............................................................................................................ #* *.!. Physi0a( Indi0ators................................................................................................................. . #. *.,. Market Share .................................................................................................................... #: *.$. Parent Company Linka)e.................................................................................................... #; *.*. &56 0apabi(ities ..................................................................................................................... #; *... 4mp(oyee Mana)ement

........................................................................................................... #; .. Con0(usion ................................................................................................................................... .. #< :. &eferen0es.................................................................................................................. ................... !"

!* Introdu(tion)
In this fast moving world, large convolution and vagueness is getting attached to the unparalleled economic turmoil% Though the impact was not seen much on the Indian economy &ut it was strong enough to put slow it down to seven percent% Still in this difficult phase there are few industries whose contri&ution to the economy has steadily increased% Information technology (IT is one of them% IT has influenced every aspect of our lives and cultures% !ithout IT&ased applications, it would have &een difficult to keep information stored securely, process information efficiently and communicate conveniently% IT will not only continue playing a key role in the convergence of computing, communications and all other aspects of computational science and applications &ut will also influence the future.s roadmap in many significant areas% Today IT/ITeS sector lead the economic growth in terms of employment, e)port promotion, revenue generation and standards of living% 0s per 10SSC2, estimates, IT sector (e)cluding hardware revenues are appro)imately at 3S* 45%6 &illion in 78 9:;;-;9< and the industry is e)pected to grow &y ;= per cent during 78 9:;9-;>% This growth has &een fuelled &y increasing diversification in the geographic &ase in the and industry verticals, and adaptation

service offerings portfolio% IT/ITeS sector has led to employment opportunities, &oth direct and indirect, of nearly 9%4 million and around 4%= million respectively% This growth is e)pected to increase to more than ;? million (direct and indirect &y 9:;@ and to around >: million &y 9:>:%

!*!* Ba(kground
The IT industry, which comprises of hardware, software, and related services, is relatively young% It started in ;=?4 when the first modern electronic digital stored-program co mputer, the ,anchester Small-Scale A )perimental ,achine (SSA, , ran its first program% The introduction of the personal computer in the late 5:Bs further accelerated the industry growth and gave &irth to several companies< nota&le among these were ,icrosoft, 0pple Computer, Sun ,icrosystems, and 2racle Corporation% By ;==9, worldwide annual industry revenues had grown to over C>6: &illion, making it the worldBs largest single industry

(Trivedi, ;=== % !hile pace in India picked up a little later% *uring ;=4:s inception of few companies like Infosys took place and the num&ers continued to grow with time%
*

!*"* Out'our(ing
0s technology cycles shortened and the comple)ity of computer systems grew, more and more companies su&contracted their systems to outside companies% 2utsourcing thus &ecame a distinct phenomenon, and many firms &egan using it in the late 4:s and early =:s% In ,ay ;==4 the Indian government esta&lished the 1ational Task 7orce on Information Technology, which had a mandate to make recommendations designed to detail policies to increase IndiaBs IT e)ports% In addition, software firms &enefited from a variety of incentives, including relief from import duties on hardware% These policies had helped the Indian software industry en$oy a compound annual growth rate% 2utsourcing is &oth cost and time saving strategy%

"* Indu'tr

Pro+ile

The software and services segment of the IT/ITeS industry could &e &roadly classified into the following three categories% Packaged Software It represents commercially availa&le off-the-shelf software like operating systems, word processors, spreadsheets, data&ases, presentation graphics, Professional Services It signifies software and consulting, Back-office custom programming, systems integration, data processing, and facilities management% Operations Services financial/ta) software, entertainment programs, home education, and desktop pu&lishing programs%

It em&odies maintenance and &ack office work such as document conversion, data entry, claims processing, and medical transcription% The industry standards which define the IT industry are 1o% of development contract 1o% of maintenance contract Product *evelopment

Client return Bench strength

To find the strength of any particular company in this sector only num&er of pro$ects handled &y is not sufficient% !e must know a&out the manpower utili(ation for the same which reflects the efficiency of the same%

"*!* Re(ent Trend'

Indian IT/ITeS industry has come a long way from ;%9 per cent of D*P in 7inancial 8ear ;==5=4 to 5%@ per cent in 78 9:;;-;9% The aggregate revenues are e)pected to cross the 3S* ;:: &illion mark, of which e)ports was 3S* 6= &illion% ,arket share of India in the glo&al sourcing industry has steadily increased from ;==:s till date, which highlights IndiaBs continued competitiveness and the effectiveness of India -&ased providers delivering transformational &enefits% !hile the glo&al macroeconomic scenario remained uncertain, the industry e)hi&ited resilience and adapta&ility in continually reinventing itself to retain its appeal to clients% 7ollowing are the ma$or drift that can &e summari(ed for this industry% Fig.1 IT Industry Revenue figures

A)port revenues (including "ardware estimated to reach 3S* 6=%; &illion in 789:;9 growing &y over ;6 per cent< *omestic revenues (including "ardware at a&out 3S* >;%5 &illion, growing &y over = per cent%

0s a proportion of national D*P, the sector revenues have grown from ;%9 per cent in 78;==4 to an estimated 5%@ per cent in 789:;9% The industryBs share of total Indian e)ports (merchandise plus services increased from less than ? per cent in 78;==4 to a&out 9@ per cent in 789:;9% Software and services revenues (e)cluding "ardware , comprising nearly 45 per cent of the total industry revenues, e)pected to post 3S* 45%6 &illion in 789:;9< estimated growth of a&out ;?%= per cent over 789:;;

- !ithin Software and services e)ports, IT services accounts for @4 per cent , BP2 is nearly 9> per cent and AR+* and Software Products account for ;= per cent% The industry continues to &e a net employment generator - e)pected to add 9>:,::: $o&s in 789:;9, thus providing direct employment to a&out 9%4 million, and indirectly employing 4%= million people%

"*"* ,-(o.ing Trend'

!ith this present state of affairs of the industry, the future prospects can &e summed up in the following waysE InnovationE This is going to &e the &u(( word for the industry in upcoming years% !e have seen 9:;; had &een the year of mo&ile adoption, where ta&lets and smart phones sales growth, &y volume and &y percentage, outpaced the shipment of desktop and laptop market% This mo&ile revolution witnessed, spending &y organi(ations in developing &oth consumer apps and enterprise apps is going to contri&ute 3S* ;5 &illion &y 9:;@% Cost AfficiencyE India provides the most competitive &id for IT/ITeS in the glo&al market% This can only &e possi&le &y reinventing and em&racing new &usiness models which will offer customers a transformed &usiness proposition in Tier II/III cities% Industry A)pertiseE India churned out an estimated ?%? million graduates in 789:;9, retaining its position as the largest source of employa&le talent in the world% 1ot only at the initial level &ut also at the top level Indians are doing their part proficiently% Supportive ecosystemE Dradually the infrastructure has &een improvised to get it in sync with the overall market% Besides, with further simpliFcation of laws and regulations, large scale investments in e-Dovernance pro$ects and focus on esta&lishing the national cy&er

security policy, the IT-BP2 industry is well-poised to maintain its growth tra$ectory in
;

the domestic market% 0lso IT has spread its arm in almost every other sector in one or the other way%

/* Tata Con'ultan(

Servi(e' 0i.ited

Tata Consultancy Services #imited (TCS is the leading and IndiaBs largest provider of IT Services, Business Solutions and 2utsourcing with revenues of 3S* ;:%;5 &illion during 78;;;9% TCS envisioned and pioneered the adoption of the fle)i&le glo&al &usiness practices that today ena&le companies to operate more efficiently and produce more value in various field% TCS has 9>4,:::G worldBs &est trained IT consultants located in ?> countries% TCS achieved this &y creating and perfecting a uni'ue method of glo&al deployment and delivery of high 'uality, high value services known as Dlo&al 1etwork *elivery ,odel (D1*,H , and the strategic services delivery concept that has reshaped the IT services industry% D1*,H is a uni'ue network of ;;5 *elivery Centres in 9; countries% TCS helps some of the worldBs largest companies adopt the right technology-ena&led solution that helps them toE 2ptimi(e &usiness performance 7acilitate alignment of &usiness with technology Connect their e)tended supply chains Reduce product development time Improve product differentiation Provide real-time &usiness insight #ower operational costs

/*!* Pro+ile
Tata Consultancy Services Ltd. (7ounded in ;=64 &y I R Tata, went pu&lic in 0ugust, 9::? VisionE #eading Regional and Dlo&al Player MissionE To direct all our organi(ational efforts at &uilding upon the e)isting organi(ational strengths and &rand recognition to achieve enhanced levels of profita&le growth in the core

<

&usiness, and diversify into new areas that compliment and supplement the core &usiness, with the diversification aimed at achieving e)cellence and industry leader status in the new areas% ValuesE Integrity, A)cellence, and Respect for the individual, Continuous learning and sharing, leading change% Trusted Partner: TCS is part of one of 0sia.s largest conglomerates - the T0T0 Droup% The group, with annual revenue of more than 3S* ;:: &illionG (9:;;-;9 , spans across diversified industry segments such as consumer package goods (CPD , energy, telecommunications, financial services, chemicals, engineering + materials% The T0T0 Droup, a sym&ol of trust in India, is known for its pioneering spirit and the &rand stands for &usiness e)cellence and integrity% Head uartersE TCS is head'uartered out of ,um&ai, India% Turnover: Tata Consultancy Services #imited (TCS is a leading and IndiaBs largest provider of IT Services, Business Solutions and 2utsourcing with revenues of 3S* ;:%;5 Billion during 78;;-;9% !u"#er of custo"ersE 2ver ;:>? active clients% It provides services in not all spheres &ut ma$orly in the listed &elow line (num&er in the parentheses indicates the respective share 0pplication development and maintenance (??%5@J 0sset leverage solutions (>%4?J 0ssurance services (5%?@J Business intelligence (?%@@J Business process outsourcing (;;%:?J Consulting (9%@4J Angineering and Industrial services (?%69J Anterprise solutions (;;%;;J and IT infrastructure services (;:%:6J

#"

/*"* Signi+i(ant develo-.ent'

By taking a 'uick view at its &usiness e)pansion strategy, it can &e easily said that ,ergers + 0c'uisitions (,+0 plays a vital role% 2ver the years it has ac'uired many companies and e)tended its realm to &ecome the e)pert of that particular area% It has &een engaged in around ;@ such ac'uisitions after 9:::% 0nd innovation has added a feather in its hat from 9::5 onwards% 7ew of its latest developments are recorded &elowE $ct %&&': TCS (c uisition of Citigrou) Services. TCS gains a range of new capa&ilities, with end-to-end &anking BP2 service offerings, and an opportunity to provide integrated IT and BP2 services to the &anking market, as well as the significant contracted revenue commitment with a value of over 3S* @:: million% 2ver ;9,::: staff has transferred with the deal% 7rom the Citigroup side, they get a cash payment, and an e)ternal partner committed to deliver (and pro&a&ly to improve the services they have moneti(ed their investment in setting up CDS (Citigroup responsi&ility for managing an offshore &ecoming increasingly competitive, and they have Services %They no longer have direct delivery centre in a market -

significantly reduced their overall head count % $ct %&1&: Su)ervalu Services India. TCS had a deal with Supervalu to have their Software 2utsourcing to TCS and ac'uired Supervalu India% This is an Indian company with strength of 6:: employees% (ug %&1%: (c uisition of Co")utational Researc* La#s. By ac'uiring computational la& TCS ensured e)pertise in high Performance Computing ("PC applications and cloud services $ust for 3S* >? million% This was a high performance computing la& working in cloud services which is in high demand% %&&': TCS Innovation La#+develo)ed )roduct, mKrishi: It won the !all Street Iournal Technology Innovation 0ward in the !ireless category% mKrishi is a service that would ena&le India.s farmers to receive useful data on an ine)pensive mo&ile device%

##

/*/* S1OT Anal 'i'

Ta#le.1 S-$T of TCS Strengt* A)tensive glo&al reach Strong financial performance Amployee management skills Innovation la&s $))ortunities 7ocus on S,B segment Drowth in worldwide IT services -ea.ness Significant e)posure to financial services market #ack of scale in consulting operations

T*reats Increasing employee costs Increase competition from companies like 0ccenture, IB, etc% 7ocus on high end &usiness and IT consulting Consolidation in the end markets A)panding operations in countries like China Rupee appreciation Increase competition from countries like China, Indonesia , etc

There has &een a growth in revenues every year contri&uting it to emerge as the leader in this industry% They have spent a good amount of capital to esta&lish Innovation #a&s to support the demand of changing technologies% 0ugmentation of industry has helped TCS to spread its wing over the developing countries and newer domain to &uild its place on the world IT map% !hile doing this the company is challenged &y various competitors like 0ccenture, IB,, "C#, etc who already have their name esta&lished in the developed countries%

2* In+o' ' 0i.ited

Infosys #imited (formerly Infosys Technologies #imited is an Indian mult inational provider of &usiness consulting, technology, engineering, and outsourcing services, 18SA listed glo&al consulting and IT services company with revenue of 3S* 5 &illion% Infosys envisions providing people with every possi&le solution% It has strength of ;@>,:::G employees spreading over 9= countries% It pioneered the Dlo&al *elivery ,odel and &ecame the first IT Company from India to &e listed on 10S*0K% Infosys is also known for its CSR activities spread over the country% It provides service in the following lineE
#!

Business Services o ,anagement Consulting o Business 0pplications 2racle S0P

o Sustaina&ility Services Technology Services o 0pplication ,anagement o Infrastructure ,anagement o Testing o Cloud o Anterprise ,o&ility o Angineering Services 2utsourcing Services o 0pplication 2utsourcing o Infrastructure 2utsourcing o Business Process 2utsourcing - Customer Service - 7inance + 0ccounting - "uman Resources - Sourcing + Procurement

2*!* Pro+ile
Infosys Ltd. (7ounded in ;=4; &y 1% R% 1arayana ,urthy, 1andan 1ilekani, 1% S% Raghavan, S% Dopalakrishnan, S% *% Shi&ulal, L% *inesh and 0shok 0rora VisionE Dlo&ally respected corporation MissionE Strategic Partnerships for Building TomorrowBs Anterprise
#,

Head uartersE TCS is head'uartered in Bangalore, India% Turnover: Infosys #imited is a leading provider of IT Services, Business Solutions and 2utsourcing with revenues of 3S* 5 Billion during 78;;;9% !u"#er of custo"ersE 2ver 466 active clients%

2*"* Signi+i(ant develo-.ent'

Infosys has remained as close knit organi(ation from its inception% It does not &elieve in e)pansion &y adding other to its family% 0lso has &een for known for corporate governance in various parts% 7ollowing of developments in last few years has &een list ed &elowE $ct %&1%: Lodestone Holding (/. Infosys ac'uired a Swiss consulting and integration &usiness for 3S* >@: million% It has strength of around 4@: people% This will help Infosys to diversify its culture which has already got a varied force from =@ nationalities% Infosys was voted India0s "ost ad"ired co")any in The !all Street Iournal 0sia 9:: every year since 9:::% $ct %&1%: Infosys Foundation. Infosys has esta&lished this foundation with a goal to support the underprivileged &eings of the society% It su&se'uently covered Tamil 1adu, 0ndhra Pradesh, ,aharashtra, 2rissa, and Pun$a& in a phased manner% 0 dedicated team at the 7oundation identifies programs in the areas of "ealthcare, Aducation, Culture, *estitute Care and Rural *evelopment% Fe# %&&1: T*e Infosys Science Foundation. It is a nonprofit organi(ation% $ct %&&1: C*arity% Infosys donated 3S* 6%4 million for the relief, reha&ilitation and reconstruction of people severely affected &y flood in northern Larnatka, India%

3* Co.-ari'on
7rom the data given &elow it can &e inferred that &oth the companies follow a conservative approach as the de&t is (ero in &oth the cases% Infosys has higher current ratio which implies that the lia&ilities are less as compared to TCS whose current ratio is &elow the industry

average for the last three years% TCS is having high Return on Capital much more than the industry average whereas Infosys is $ust a&ove the line% Similar is the case of return on net worth (R21! %
#$

Talking a&out the inventory turnover TCS is laggard with a very high num&er (4::: which is not good for any company% !hile Infosys is having (ero inventory, the industry average is somewhere around ;?@% ,arket performance of &oth the companies they are risk averse with Infosys a &it higher on risk taking side% 0lso the performance as compared to the Sense) shows that market price of TCS is not affected &y the market sentiments which is not in the case of Infosys%

3*!* 4inan(ial Per+or.an(e

Ta#le.% Financial co")arison
TCS 1%+Mar *e&t-A'uity : ;%5? 4,;59%9: @%@= Current Ratio Inventory Turnover *e&tors Turnover Return 2n Capital Amployed (J Return on 1et !orth (J Total Share Capital A'uity Share Capital Preference Share Capital Total *e&t , Cap Drowth (J Beta 0nalysis 11+Mar : ;%@6 ?,4;=%:? 5%;= 1&+Mar : ;%6> ;,=?9%9@ 6%@9 I!F$S2S 11+ 1%+Mar Mar : ?%6= : 6%@ : ?%69 : 6%4; I!34STR2 11+ Mar 1&+Mar :%;9 9%:? ;?5%@@ @%:4 :%;; ;%=4 ;?4%= @%@

1&+ Mar : ?%?5 : 6%>5

1%+ Mar :%; 9%96 ;?@%:? @%?;

Current Healt*

5fficiency of Financial Resources

@=%9= ?=%@> 9=@%59 ;=@%59 ;:: :

?=%46 ?>%4> 9=@%59 ;=@%59 ;:: :

??%@@ >=%@ 9=@%59 ;=@%59 ;:: :

?9%66 >;%99 945 945 : :

>5%4= 95%6= 945 945 : :

>5%56 9=%;> 945 945 : :

32.62 26.26

29.48 26.77

40.29 36.34

Ca)ital Structure

-1.24

51.45

189.19

-11.47

23.84

97.84

".*<:;

".;.!

Mar.et Perfor"ance

#*

3*"* Ph 'i(al Indi(ator'

0s per the re'uirement of industry for the investment structure none of the company touches the mark &ut Infosys is slightly &etter than TCS num&er wise% 7or employees strength TCS leads the count &y over 9>4,::: while Infosys is still having ;@>,::: employees% !e can say that growth in num&er of employees has not &een in the same ratio with sales for Infosys as it has &een for TCS% "ence we can infer that manpower utili(ation is more efficient in case of Infosys and &ench strength of TCS may &e more% Ta#le.6 P*ysical )ara"eters co")arison
TCS 1%+Mar 0ssets (Drowth Rate Sales Molume (Drowth Rate Amployees (Drowth Rate %7,616.%& 95%65 >44@4%5= >9%5> 9>4@4> 9:%;9 11+Mar 11,'%8.9% >:%4@ 9=95@%64 95%:? ;=46;? 9>%4: 1&+Mar 17,17%.61 -?=%;9 9>:??%4? 9%4@ ;6:?9= ?%46 1%+Mar %1,99'.&& 9;%?; >;9@? 9>%;9 ;@>::: ;6%=@ I!F$S2S 11+Mar %:,7%8.&& ;;%>: 9@>4@ 9:%:4 ;>:49: ;?%=6 1&+Mar %%,&68.&& -4>%@4 9;;?: ?%>9 ;;>5=6 >9%@@ 1%+Mar ;,>?,;5>%?5 ;6%;? ;,66,>4;%64 9;%4; I!34STR2 11+Mar ;,;@,@96%5; ;6%5@ ;,>6,@4=%?= ;6%== ;,;6,5?4%?; 1&+Mar =4,=?=%>>

Fig.% Sales Volu"e Co")arison

;"3"""."" :"3"""."" ."3"""."" *"3"""."" $"3"""."" ,"3"""."" !"3"""."" #"3"""."" ".""

Sale' 5olu.e 6R'* in Cr'*7

,#!*$ !*,; * ,;3;*;.:< !<3!:*. .; Infosys TCS

!##$" !,3"$$.;$

#"-Mar

##-Mar

#!-Mar

#.

3*/* Market Pre'en(e

TCS covers a large chunk (?;J of the software industry while Infosys is a distant second (99J followed &y !ipro, "C# Tech and others% Fig.6 Mar.et S*are co")arison

Market Share
*@ !@ #@ $@ !@

TCS Infosy s =ipro 8CL Te0h >ra0(e ?inan0 Mahindra Satyam Te0h Mahindra MphasiS

:@ #.@

$# @

!! @

7rom the total &usiness of 3S* ;:: &illion, 3S* 6= &illion comes from the e)port and the rest is contri&uted &y the domestic market% 7rom the chart &elow we can easily make out that share of Infosys is greater than TCS which is only >%>J of the total e)port% !hile ma$or chunk (=5%5J of revenue for Infosys comes from e)port TCS depends on the domestic sales mostly% Fig.: 5;)ort s*are

Share o+ E8-ort
, @ #" @ TCS Infosy s >thers

;: @

#:

3*2* 0ink' with Parent Co.-an

Infosys is original company not a derived one while TCS is the su&sidiary of Tata Droup of Industries% The only link &etween the two is NStandardi(ation of the "R Processes throughout the company, as part of its parent companyBs glo&al "R strategy of O2ne "R SolutionBP%

3*3* R9: (a-a&ilitie'

TCS is ranked num&er one in #ife Science R+* IT 2utsourcing ,arket &y I*C "ealth Insights% TCS spent Rs% ?:@%:6 crore or C5?%?>6 million% 7urther, Infosys spent C;?: million in R+* e)penses, which is an almost ;:: per cent increase over 78;:, when the company spent a mere C=9 million on R+*% This shows that in spite of &eing leader in market sales it is far &ehind Infosys which still the show in terms of R+* e)penditure% Infosys has &een ranked ;= 7ifty ,ost Innovative firms &y 7or&es ,aga(ine where TCS featured on 9= position% But the main reason for TCS lagging &ehind is the methodology they employee in their R + * process% This ensures that the si(e of the R + * team remains &etween ;@: and 9:: people which reduces people related cost%
th th

in

3*$* Peo-le Manage.ent

Ta#le.: 5")loyee )ara"eter co")arison Parameter Amployee utilisation 0ttrition rate TCS 4:%6J ;;J Infosys 54%=J ;@J

This ta&le shows the effectiveness of TCS in managing large num&er of employees and providing &etter satisfaction% 2ne striking contrast is in the change in the headcount of the two firms% In the last 'uarter (K9-9:;9 , TCS added, in net terms, ;:,@>; employees< Info sys added 9,6;:% Infosys. much higher attrition rate could reflect disappointment over increments Q which were delayed in the first place% Amployee morale within the company cannot &e very ro&ust%

#;

$* Con(lu'ion
IT industry as a whole is having wider scope of flourishing in future% This is going to &e one of the ma$or contri&utors in the countryBs D*P in the years to come% 0s of now TCS is leading the Indian IT market in terms of sales volume, profit manpower utili(ation, return on capital employed and other financial parameters% But there are certain grounds where TCS lags &ehind Infosys and to remain the leader in long term it cannot neglect those issues% Infosys though is not at par in terms of revenues &ut they are investing a lot in R+* and CSR activities which adds to its image and future prospects% !e recommend TCS to contri&ute more into R+* activities as innovation is going to &e the &iggest factor in future for this industry% 0lso investing for social activities will help in enhancing its image as despite &eing second in market Infosys has &een voted as the ,ost 0dmired Company% Indian

#<

;* Re+eren(e'

!"#!%. &etrie'ed from http:--en.+ikipedia.or)-+iki-Infosys Infosys. !"#!%. &etrie'ed

+ikipedia.or): from infosys 0apita(ine.0om: official. !"#!%.

http:--+++.0apita(ine.0om-user-framepa)e.aspAidB# &etrie'ed from infosys.0om:

http:--+++.infosys.0om-about-Pa)es-indeC.aspC

Infosys Te0hno(o)ies Limited #<<<%. NDTV Profit. !"#!%. &etrie'ed from profit.ndt'.0om: http:--profit.ndt'.0om-ne+s-0orporates-arti0(e - infosys-t0s-amon)-+or(ds-*"-mostinno'ati'e-firmsTCS. !"#!%. &etrie'ed from http:--+++.0apita(ine.0om-user-framepa)e.aspAidB# TCS official. !"#!%. &etrie'ed from t0s.0om: http:--+++.t0s.0om-in'estors-6o0uments-9nnua( @!"&eports-TCSD9nnua(D&eportD!"##-!"#!.pdf 0apita(ine.0om:

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