TCS: Industry and Competitive Analysis

I.T. Industry Analysis

The IT industry in India has today become a growth engine for the economy.
India holds a dominant share of the global offshore IT sector.
Indian IT exports accounted for less than 3% of the global spend on ITs.
Software and service exports including BPO are expected to grow.
PESTEL Analysis:
Political: Politically stable,
Government owned companies and PSUs have decided to give more
support to give more IT projects to Indian IT companies
Economic: Domestic market to grow by 30%,
Economic attractiveness due to cost advantage
Social: Good IT education,
Working age population
Technological: Internet backbone, New IT Technologies
Environment: Focus on reducing carbon footprints, energy utilization, etc
Legal: Sound legal environment

Competition:
1.
2.
3.
4.
5.

Infosys
Wipro Technologies
Mahindra Satyam
Cognizant
IBM

SWOT Analysis
Strengths: 1) High command on local and domestic market(India)
2) Strong brand backing (TATA)
3) Brand Image is quite strong in markets it serves
4) Employee strength of over 300000
Weaknesses: 1) Not very strong in product segment
2) Heavy exposure to banking, financial services, etc
Opportunities: 1) Emerging markets
2) Product market e.g. domain targeted offerings
3) Repeat Business from existing clients

Threats: 1) Attrition and Employee loyalty

2) Bigger MNC's entering India and competing for global clients
3) Focusing on organic growth

Porters Five Forces

Threat of
substitie
s: High

Bargaini
ng power
of
supplier:
Low

Rivalry
among
firms:
HIgh

Barrier
to Entry:
High

Bargaing
power of
customer
s: Very
High