Similarity Report ID: oid:9832:41028913

PAPER NAME

Industry Analysis Report.docx

WORD COUNT CHARACTER COUNT

5273 Words 31352 Characters

PAGE COUNT FILE SIZE

20 Pages 154.3KB

SUBMISSION DATE REPORT DATE

Aug 18, 2023 11:55 AM GMT+5:30 Aug 18, 2023 11:56 AM GMT+5:30

10% Overall Similarity

The combined total of all matches, including overlapping sources, for each database.
8% Internet database 1% Publications database
Crossref database Crossref Posted Content database
7% Submitted Works database

Excluded from Similarity Report

Manually excluded text blocks

Summary
SVKM Narsee Monjee Institute of Management Studies Navi Mumbai

A Report on

INDUSTRY ANALYSIS OF IT SERVICES INDUSTRY

Presented To
Dr. Nitin Balwani

Presented By (Group 4- Div.: C)

1. Chinmay Pandharipande- N251

2. Maitri Maniar – N253
3. Malkissa Machado – N256
4. Divyanshi Jain – N258
5. Anant Bharadwaj – N260

1
Introduction

6
The IT services industry in India is one of the most important sectors of the economy, contributing significantly
5
to the country's GDP (Gross Domestic Product). The industry comprises a wide range of services, including
software development, IT consulting, business process outsourcing, and cloud computing.

8
The IT services industry in India has been growing rapidly in recent years and is expected to continue to grow in
the coming years. The industry is expected to generate revenue of US$ 245 billion in FY 2023, and US$ 430
billion by 2028.

2
The growth of the IT services industry in India is being driven by several factors, including:

 The increasing adoption of digital technologies by businesses and governments around the world.
2
 The availability of a large pool of skilled IT professionals in India.
 The favorable business environment in India, including low labor costs and a supportive government
policy.

The IT services industry in India is a major employer and is expected to create over 2 million new jobs by 2028.
4
The industry is also a major source of foreign exchange earnings and is expected to contribute over US$100
6
billion to the country's GDP by 2028.

12
The major IT services companies in India include:

 Tata Consultancy Services (TCS)

 Infosys
 Wipro
 HCL Technologies
 Tech Mahindra

These companies offer a wide range of IT services and are known for their high quality and competitive prices.
They are also major exporters of IT services, and help to promote India as a global hub for IT.

4
The IT services industry in India is a major driver of economic growth and job creation. It is also a major source
3
of foreign exchange earnings. The industry is expected to continue to grow rapidly in the coming years and is
poised to play an even more significant role in the Indian economy.

2
Table of Contents
Introduction ...................................................................................................................................................2
IT Services Industry........................................................................................................................................3
WIPRO ...........................................................................................................................................................6
INFOSYS .......................................................................................................................................................7
Human Capital ........................................................................................................................................................ 7
Financial.................................................................................................................................................................. 8
Future Plan of Action .............................................................................................................................................. 9
TECH MAHINDRA ..................................................................................................................................... 10
CONTRIBUTION TO THE INDUSTRY ............................................................................................................. 12
TATA Consultancy Services ......................................................................................................................... 13
HUMAN CAPITAL .............................................................................................................................................. 13
Key Trends in IT Service Industry: ............................................................................................................... 14
Key Financial Ratios Comparison ................................................................................................................ 16
Executive Summary ...................................................................................................................................... 18
Conclusion ................................................................................................................................................... 19
References .................................................................................................................................................... 20

3
IT Services Industry

Overview of Economic Conditions

During the fiscal year 2023, the worldwide economy encountered an unforeseen deceleration, primarily triggered
by factors such as elevated interest rates orchestrated by central banks and the decline in prices of food and energy
commodities. These occurrences led to a gradual abatement of global inflation, culminating in moderate
improvements in purchasing power for both households and businesses.
Short-Term Economic Prospects
The near-term economic outlook remains uncertain, as a convergence of factors introduces latent risks.
Geopolitical tensions within Europe, the ramifications of stringent monetary policies, apprehensions pertaining
to inflation and the potential for economic downturn, fluctuations in the global energy markets, and amplified
volatility in financial spheres collectively contribute to this ambiguity. Swift adjustments in fiscal policies have
laid bare susceptibilities within financial institutions, encompassing both traditional banks and non-bank entities,
potentially resulting in market deceleration and postponed decision-making.
Analysis of the Technology Sector
The technology sector is positioned for notable strides, with augmented investments anticipated in
transformations driven by value. This encompasses domains such as cloud computing, automation, seamless
integration of artificial intelligence (AI), data analysis, and cybersecurity. The impetus for digital metamorphosis
and modernized infrastructure will serve as fundamental drivers of growth. Emerging technologies, including
next-generation AI, augmented reality (AR), virtual reality (VR), web3, and 5G, are poised to induce disruptions
across industries, while concurrently raising concerns regarding data privacy and ownership.
Role of Global IT Service Providers
Global IT service providers are strategically positioned to aid a diverse array of industries in navigating challenges
stemming from the current economic milieu. Services encompass software development, digital transformation,
consultative services, research, and support for technology infrastructure. In the fiscal year 2024, the IT services
sector is poised for acceleration owing to heightened client investments in optimizing costs, attaining operational
excellence, effecting digital transformation, fostering innovation, talent management, and embracing
environmental, social, and governance (ESG) initiatives.
Anticipated Trajectory of the Indian IT Services Sector
The Indian IT services sector anticipates an 8.3% year-on-year revenue growth during the fiscal year 2023,
propelled by initiatives such as IT modernization, migration to cloud infrastructure, and the facilitation of digital
transformation. Remarkably, revenues generated from digital avenues are projected to constitute a substantial
20
proportion of overall industry revenue, particularly bolstered by digital transformation, cloud-based services,
artificial intelligence (AI), and software-as-a-service (SaaS)-enabled products.
Momentum in Next-Generation Technologies
The report underscores robust advancements in next-generation technologies encompassing sensor technology,
25
autonomous systems, computer vision, augmented reality (AR), virtual reality (VR), and the impending 5G/6G
era, with growth rates surpassing the industry's mean growth for the fiscal year 2023.
Evolution of the Engineering Services Sector
4
The engineering services sector is poised to expand by 11% in the fiscal year 2023, attaining a valuation of $41
billion. This growth is underpinned by heightened integration of software into equipment, the paradigm shift
1
towards cloud-based services, the proliferation of Industrial Internet of Things (IoT), seamless integration of 5G
technology, and the ascent of digital engineering.
Sector-Specific Perspectives
While segments such as Banking & Financial Services, Hi-tech, and Retail & Consumer evince circumspection
in technology-related expenditures due to market volatility, sectors including Healthcare, Utilities, and
Automotive are projected to exhibit resilience.
Environmental, Social, and Governance (ESG) Imperatives
Environmental, social, and governance (ESG) considerations retain their paramount significance, with clients
expecting IT providers to harmonize with global standards and facilitate the attainment of ESG objectives
encompassing climate change, inclusivity, corporate governance, and cybersecurity.

5
WIPRO

In the fiscal year 2023 (FY23), the corporation accomplished revenue exceeding $11 billion, showcasing a growth
of 11.5% year over year in terms of constant currency. This achievement signifies the second consecutive year of
achieving double-digit expansion since the inception of the transformational journey in 2020. The company's
Board authorized a substantial equity share buyback program worth $1.5 billion, set at a share price of `445.
Despite prevalent global challenges including the ongoing Ukraine conflict and elevated global interest rates, the
company adeptly navigated these circumstances by concentrating on efficiency enhancements and avenues for
growth. The conclusion of the year was marked by a robust 28% surge in bookings compared to the prior year,
accompanied by the recruitment of 22,000 Next-Gen Associates. During this period, strategic investments were
made, the company's cloud capabilities were streamlined under Wipro FullStride Cloud, an acquisition of Rizing,
a SAP consulting firm, was finalized, and the cybersecurity practice was fortified. The organization further
underwent a restructuring, aligning itself into four global business divisions for enhanced synergy with client
priorities.
FY23 witnessed notable strides in artificial intelligence, exemplified by the introduction of AI-powered offerings
like ChatGPT and Dall-E from OpenAI.

6
INFOSYS
1
Infosys is a preeminent name in the realm of IT services, holding a distinguished position as one of the Top 3 IT
Services Brands globally, and securing its spot among the Top 150 Most Valued Brands in the Brand Finance
Global 500 2023 report. With an origin dating back to 1981, when it embarked on its journey with a modest
capital of US$250, Infosys has evolved into a powerhouse with an astounding market capitalization of around
US$72.35 billion. Renowned for its avant-garde digital solutions and advisory prowess, the company orchestrates
transformative journeys for clients spanning over 56 countries, expertly guiding them through the intricacies of
digital metamorphosis. The gamut of its offerings encompasses an array of services such as software application
development and maintenance, as well as profound IT consulting. Infosys stands as an emblem of innovation and
growth, a testament to its resolute commitment to shaping the digital landscapes of today and tomorrow.

Human Capital

Infosys, a global leader in technology services and consulting, places immense significance on its human capital,
recognizing it as a cornerstone of the company's success. With a total workforce of 3,43,234 employees, Infosys
1
stands as a testament to its commitment to fostering talent. Notably, the company invests 16.31 annual average
training days per employee, demonstrating its dedication to continuous learning and professional development.
The investment in employee well-being, totaling a substantial 1,585 crore rupees, underscores Infosys' holistic
approach to employee satisfaction and growth. As a company deeply rooted in innovation, Infosys acknowledges
the pivotal role of nurturing talent for future success. This recognition has translated into the establishment of
robust pathways for employee upskilling and reskilling, yielding mutually beneficial outcomes for both the
individuals and the organization.
With a profound understanding of the modern workforce's expectations, Infosys ensures that its employees are
presented with ample opportunities to learn, grow, and evolve within their careers. The company's commitment
extends to cultivating safe workplaces that are devoid of discrimination and bias, creating an inclusive
environment for a diverse and multicultural workforce.
1
A cornerstone of Infosys' people-centric approach is its 5C model for Engagement: Connect, Collaborate,
Celebrate, Care, and Culture. This model is meticulously designed to fortify the company's culture, guaranteeing
a consistent and affirmative experience for employees regardless of their location, whether remote or in-office.
By fostering connections, encouraging collaboration, celebrating achievements, prioritizing employee well-being,
and nurturing a thriving organizational culture, Infosys establishes an environment that not only drives innovation
and excellence but also cultivates a sense of belonging.
In conclusion, Infosys' steadfast focus on its human capital, demonstrated through substantial investments in
training, well-being, and fostering an inclusive work culture, stands as a testament to its commitment to nurturing
talent and ensuring sustained success in the dynamic technology landscape.

7
Financial

In the dynamic landscape of the IT industry, Infosys has emerged as a shining star, boasting a commendable
20.7% Year-over-Year (YoY) growth in 2023. This impressive growth signifies the company's ability to navigate
the challenges within the industry and drive forward at a healthy pace. Notably, while the IT industry as a whole
experienced growth at a rate of 8.7% according to NASSCOM, Infosys outperformed this benchmark,
highlighting its competitive edge. One of the driving factors behind this robust growth could be the escalating
demand for digital transformation and cloud computing services, both of which Infosys has adeptly capitalized
on.
Dividends speak volumes about a company's financial health and confidence in its future prospects. Infosys'
decision to distribute 34 rupees per share as dividends underscores its financial strength. Moreover, the consistent
Year-over-Year dividend growth rate of 9.7% is an encouraging sign, reflecting the company's commitment to
enhancing shareholder value by increasing dividend payments over time.
Digging deeper into the financial metrics, Infosys' basic earnings per share (EPS) stands at an impressive 57.63
rupees, surpassing even industry peers like Tech Mahindra. This noteworthy figure is growing at a steady rate of
9.7% YoY, which demonstrates Infosys' ability to generate sustained earnings growth. This trend not only attracts
investors but also showcases the company's efficient management of resources and operations.
Operating margin, a key indicator of operational efficiency, paints a positive picture for Infosys. With an operating
margin of 21%, the company outperforms the IT industry's average margin of approximately 23.2%. This is
indicative of Infosys' prudent cost management and effective revenue generation mechanisms. Such a healthy
margin not only sustains profitability but also provides room for strategic investments and future growth
initiatives.
In terms of market capitalization, Infosys boasts a significant market cap exceeding 5 lakh crores and commands
a market share of 13.26%. While this is certainly an encouraging sign for the company's position in the market,
it's important to acknowledge the broader challenges facing the IT industry. The industry's growth has been stifled
by rising global uncertainties, casting a shadow of doubt over future prospects. The recent financial turmoil in
8
major markets, particularly the United States and Europe, alongside clients deferring spending due to recessionary
fears, have collectively contributed to a subdued outlook for the industry.
However, Infosys' resilience in the face of these challenges cannot be underestimated. Despite weak IT spending
by multinational giants and corporate earnings falling short of street estimates, Infosys continues to stand strong.
The company's ability to navigate these headwinds is a testament to its adaptability and strategic foresight,
bolstered by a comprehensive understanding of market dynamics.
Return on Equity (ROE) stands as another compelling indicator of Infosys' financial prowess. A robust ROE of
31.2% signifies that the company is adept at generating substantial returns for its shareholders' equity. This
impressive metric is a reflection of Infosys' sustained strong performance over time. Notably, the company's
significant investment in research and development (R&D), exceeding 300 crores, has fueled the development of
innovative products and services in high demand.
While Infosys generated an impressive $20,443 crores in cash from operations, it's crucial to analyze the factors
influencing fluctuations in free cash flows. The decline in free cash flows could potentially stem from Infosys'
strategic investments in burgeoning sectors like cloud computing and artificial intelligence. Alternatively,
heightened competition within the industry might also be a contributing factor. Despite these fluctuations, Infosys
remains a profitable entity, demonstrating its ability to generate value even in a challenging environment.
In conclusion, Infosys' financial overview showcases a company that's not only weathering industry challenges
but thriving within them. Its exceptional growth rate, dividend performance, strong EPS, healthy operating
margin, and strategic positioning in the market underscore its sound financial footing. By demonstrating
adaptability, prudence, and innovation, Infosys is poised to continue its journey of growth and prosperity in the
ever-evolving IT landscape.
Future Plan of Action
In outlining their future plan of action, the organization is poised to embark on a trajectory of sustained growth
and innovation through strategic collaborations and the establishment of a dynamic ecosystem. Central to this
blueprint is the commitment to forge robust partnerships with prominent national and international universities,
esteemed product vendors, and burgeoning technology startups. This strategic alliance will serve as a conduit for
the exchange of knowledge, ideas, and resources, propelling the organization into the vanguard of its industry.
In the coming years, the organization's collaborative efforts with universities will encompass a multifaceted
approach. Joint research initiatives, academic exchanges, and the development of specialized curriculum will
foster a symbiotic relationship that not only enhances the academic landscape but also cultivates a pipeline of
skilled graduates attuned to industry needs. By tapping into the research prowess of these institutions, the
organization can anticipate breakthroughs and innovations that address pressing business challenges.
Furthermore, partnering with prominent product vendors and agile technology startups will yield a diverse
spectrum of advantages. These collaborations will facilitate access to cutting-edge technologies, accelerate
product development cycles, and streamline the integration of novel solutions. By intertwining their expertise,
the organization can swiftly adapt to evolving market demands, securing a competitive edge.
An integral facet of the future plan entails the creation of an ecosystem designed for co-creating bespoke business
solutions tailored to individual client exigencies. This ecosystem will serve as an incubator for innovation,
convening multidisciplinary teams that amalgamate diverse perspectives to fashion holistic strategies. By aligning
business acumen with technological prowess, the organization will craft innovative solutions that circumvent
conventional limitations.

9
In closing, the organization's future plan of action underscores an unwavering commitment to collaboration,
innovation, and customized solutions. By cultivating robust partnerships with educational institutions, product
vendors, and startups, the organization positions itself at the nexus of academia, technology, and industry. This
strategic melding of intellectual capital and technological innovation will undoubtedly yield a harmonious
symphony of progress, propelling the organization toward an ascendancy marked by groundbreaking solutions,
enduring relevance, and transformative impact

TECH MAHINDRA
Tech Mahindra is an Indian multinational information technology (IT) services and consulting company. It is a
1
part of the Mahindra Group, one of the largest and most admired multinational federation of companies with over
1
260,000 employees in over 100 countries.

Tech Mahindra was founded in 1986 as Mahindra British Telecom (MBT). It was renamed Tech Mahindra in
5
2004. The company offers a wide range of IT services and consulting, including:

 Application development and maintenance

 Business process outsourcing
 Cloud computing
 Cyber security
 Data analytics
 Digital transformation
 Internet of Things (IoT)
 Machine learning
 Robotic process automation (RPA)
 Software development
 Testing and quality assurance

Tech Mahindra has over 150,000 employees across 90 countries. Its customers include Fortune 500 companies
such as 3M, Boeing, Cisco, General Electric, and IBM.

16
The company is headquartered in Pune, India. It also has offices in major cities around the world, including
Bangalore, Mumbai, New Delhi, London, New York, and Sydney.

Tech Mahindra is committed to innovation and sustainability. It is a founding member of the UN Global Compact
1
and has been recognized as one of the world's most sustainable companies by the World Economic Forum.

1
The company's purpose is to "enable enterprises, associates, and society to Rise for a more equal world, future
13
readiness, and value creation." It is focused on leveraging next-generation technologies such as 5G, artificial
intelligence, and blockchain to enable end-to-end digital transformation for its customers.

10
 3
In 2022, Tech Mahindra's revenue was US$6.5 billion. The company is expected to continue to grow in the
coming years, driven by the increasing demand for digital transformation services.

Here are some of the key products of Tech Mahindra:

 Counterfeit detection: This product helps businesses to identify and prevent counterfeit products from
entering the supply chain.
 Smart IoT devices: These devices collect and transmit data from physical objects, which can be used to
improve efficiency, productivity, and security.
 Smart D2C equipment: These devices enable businesses to interact with customers directly, without the
need for intermediaries.
 Personalized experiences: These experiences are tailored to the individual needs and preferences of
customers.
 Artwork & pack management: This service helps businesses to manage the artwork and packaging of
their products.
 Immersive experience: This technology creates a realistic and engaging experience for users.

26
Tech Mahindra is a leading provider of IT services and consulting. It is committed to innovation and sustainability
11
and is focused on leveraging next-generation technologies to enable end-to-end digital transformation for its
customers.

Sure, here are some of the key financial ratios of Tech Mahindra as of March 31, 2023:

 Profitability ratios:
o Net profit margin: 8.85%
o Return on net worth (RoNW): 15.21%
33
o Return on capital employed (RoCE): 19.23%
o Return on assets (RoA): 10.48%
 Liquidity ratios:
24
o Current ratio: 1.81
o Quick ratio: 1.81
 Debt ratios:
o Total debt to equity: 0.00%
 Valuation ratios:
o Enterprise value to EBITDA: 18.00
o Market capitalization to net operating revenue: 2.49

11
 These ratios indicate that Tech Mahindra is a profitable company with a strong financial position. The company
has a high net profit margin, which means that it is generating a lot of profit from its operations. The company
also has a high RoNW and RoCE, which means that it is using its assets and capital efficiently. The current ratio
7
and quick ratio are both high, which indicates that the company has enough liquidity to meet its short-term
obligations. The total debt to equity ratio is zero, which means that the company does not have any debt.

Overall, the financial ratios of Tech Mahindra are positive. The company is profitable, has a strong financial
15
position, and is not financially leveraged. However, it is important to note that these ratios are just a snapshot of
29
the company's financial health at a particular point in time. It is important to analyze the company's financial
statements over a period to get a more complete picture of its financial health.

CONTRIBUTION TO THE INDUSTRY

28
Tech Mahindra is one of the leading IT services companies in India. It has made significant contributions to the
IT services industry in India in the following ways:

 Creating employment opportunities: Tech Mahindra is a major employer in India, with over 150,000
23
employees. This has helped to create employment opportunities for skilled workers in India and has
contributed to the country's economic growth.
 Upskilling and training the workforce: Tech Mahindra invests heavily in upskilling and training its
employees. This has helped to improve the skills and knowledge of the Indian workforce and has made
India a more attractive destination for IT services investment.
 Driving innovation: Tech Mahindra is a leading innovator in the IT services industry. It has developed
several innovative solutions that have helped its customers to improve their businesses. This has helped
2
to boost the growth of the IT services industry in India.
 Promoting entrepreneurship: Tech Mahindra has a strong focus on entrepreneurship. It has launched
several initiatives to promote entrepreneurship among its employees and others. This has helped to create
a more entrepreneurial ecosystem in India.
 Contributing to social causes: Tech Mahindra is committed to contributing to social causes. It has several
CSR initiatives that are aimed at improving the lives of people in India. This has helped to make India a
more just and equitable society.

Overall, Tech Mahindra has made significant contributions to the IT services industry in India. It has helped to
create employment opportunities, upskill the workforce, drive innovation, promote entrepreneurship, and
contribute to social causes. These contributions have helped to make India a leading destination for IT services
investment.

Here are some specific examples of Tech Mahindra's contributions to the IT services industry in India:

12
  In 2019, Tech Mahindra launched the "NXT.NOW" initiative, which is a $1 billion investment in next-
generation technologies. This initiative is aimed at helping Tech Mahindra's customers to adopt new
technologies such as 5G, artificial intelligence, and blockchain.
 In 2020, Tech Mahindra launched the "Tech Mahindra Foundation". This foundation is focused on
providing education and employability opportunities to children and young adults in India.
 In 2021, Tech Mahindra was awarded the "Top Performing Business Partner - Managed Service Provider"
award by IBM. This award recognizes Tech Mahindra's commitment to innovation and excellence in
managed services.

TATA Consultancy Services

Tata Consultancy services ranks 2nd in the IT services industry as per 2023 rankings. For the financial year 2022-
23 TCS was working on the theme “Innovate, Adapt, and Thrive”. All the financial expenses and strategic alliance
were in relation to the theme for the year. This included the inclusion of Artificial Intelligence (AI) and Machine
Learning (ML). The consolidated revenue for TCS FY 22-23 was USD 27.9 billion $ which was 16.9% higher
than the total revenue of the last financial year. This increase was accounted for by the inclusion of innovation
and current IT trends into their offerings.

The main functions of TCS include:

 Consulting
 Application development and Maintenance
 Infrastructure Management
 Business Process Outsourcing

HUMAN CAPITAL

At TCS, "human capital" refers to the workforce's overall knowledge, abilities, experience, and well-being. TCS
is dedicated to acquiring, fostering, and maintaining the top talent in order to construct a solid human capital
foundation.

TCS offers a variety of programs and initiatives to support its employees, including:

 A thorough training and development program that equips staff with the knowledge and abilities necessary
for professional success.
 A system for measuring employee performance that aids in goal setting and achievement.
13
  A system of incentives and recognition that honors and compensates staff for their contributions.
 A program that supports workers' physical and emotional wellbeing and promotes work-life balance.
 A diversity and inclusion program that encourages a climate of inclusion and respect.

The industry attrition rate is 21% and out of that attrition rate, TCS accounts for 20.1% which is much less for an
IT service industry. This can be achieved by training their employees in the best possible way and by creating an
atmosphere where the employees feel that their decisions are taken into consideration.

Key Trends in IT Service Industry:

14
1. Digital Transformation:
The process of utilizing digital technologies to alter how a business runs is known as digital transformation.
Utilizing technology for improved productivity, flexibility, and customer service is part of digital transformation.
Since it offers the tools and services that companies require to transform their operations, the IT service sector is
a significant force behind digital transformation.

Some of the key areas of digital transformation in the IT service industry include:

 Cloud Computing: Businesses are progressively shifting their IT infrastructure to the cloud, making cloud
computing a significant trend in the IT sector. Numerous benefits, including scalability, flexibility, and
10
cost savings, are provided by cloud computing. Providers offer Infrastructure as a Service (IaaS), Platform
as a Service (PaaS), and Software as a Service (SaaS) solutions.
 Artificial Intelligence: Another significant development in the IT sector is artificial intelligence (AI),
which has the potential to automate processes, enhance judgement, and enhance client experiences.
 Machine Learning: AI's subset of machine learning enables computers to learn without explicit
programming. This is utilized in the IT services sector in a number of applications, including fraud
detection, consumer segmentation, and predictive analytics.
22
 Big Data: Big data refers to the enormous volumes of data that both organizations and individuals are
producing. This information can be utilized to enhance decision-making, understand consumer behavior,
and streamline processes.
 Cyber Security: The major concern in the digital age is cyber security. IT services providers can help
businesses to protect their data and systems from cyber-attacks.

2. Remote work location:

14
 In the years to come, the trend towards remote employment in the IT service sector is probably going to
continue. This is due to the fact that the elements influencing this tendency are not changing. IT specialists
can offer helpful insights and solutions in all of these fields, which are growing more and more significant.
These fields include cloud computing, cybersecurity, big data analytics, mobile devices, and automation.
Here are some of the remote work location trends that are emerging in the IT service industry:
 Coworking Spaces: IT professionals who want a dedicated workspace but don't want to be bound to
an office are increasingly using coworking facilities. Numerous services are provided in coworking
spaces, including high-speed internet, conference rooms, and printers.
 Remote work hubs: Some businesses are creating remote work hubs to give their remote workers a
specialised workspace. In general, remote work hubs provide the same services as coworking spaces,
although they are situated in particular locations.
 Digital Nomads: Some businesses are creating remote work hubs to give their remote workers a
specialised workspace. In general, remote work hubs provide the same services as coworking spaces,
although they are situated in particular locations.

3. Outsourcing and offshoring

Outsourcing is the practice of hiring a third party company to perform a specific task or service. This can be done
for various reasons, such as saving money, acquiring special skills or freeing up internal resources. Offshoring
means outsourcing work to a company located in another country. This is often done to take advantage of lower
labour costs in other countries.

15
 Key Financial Ratios Comparison

Ratios TCS WIPRO INFOSYS HCL Tech

Mahindra
31
P/E 29.8 17.6 24.78 21.2 19.7
EV/EBITDA 18.84 10.6 15.3 11.7 18
Current Ratio 2.36 2.47 1.81 2.50 1.81
Quick Ratio 2.36 2.46 1.81 2.49 1.81
Debt to Equity 0.0164 0.19 0.00 0.03 0.00
ROE 46.9% 15.8% 38.79% 22.7% 15.21%
ROCE 60.5% 12.8% 43.03% 27.56% 19.23%
EPS 115.19 20.73 55.48 54.85 100.3

Analysis
18
Price-to-Earnings (P/E) Ratio:
The P/E ratio serves as a gauge of the market's future earnings growth expectations for a company. A higher P/E
ratio is indicative of elevated growth expectations. In this instance:
TCS demonstrates a relatively elevated P/E ratio of 29.8, pointing to heightened market anticipations for its
forthcoming earnings growth.
WIPRO showcases a moderate P/E ratio of 17.6, denoting moderate growth expectations.
INFOSYS presents a P/E ratio of 24.78, signifying market expectations that span between moderate and high
growth.
HCL displays a P/E ratio of 21.2, reflecting expectations of moderate growth.
Tech Mahindra holds a P/E ratio of 19.7, indicating moderate growth expectations.
32
Enterprise Value to EBITDA (EV/EBITDA) Ratio:
27
This ratio quantifies a company's valuation concerning its earnings before interest, taxes, depreciation, and
amortization. A lower ratio may indicate an undervalued status.
Within the entities under consideration, WIPRO boasts the lowest EV/EBITDA ratio of 10.6, potentially hinting
at a relatively undervalued standing.
INFOSYS records a ratio of 15.3, indicating a moderate valuation.
HCL's ratio of 11.7 implies a relatively undervalued status.
TCS registers a higher ratio of 18.84, which could denote a relatively higher valuation.
Tech Mahindra's ratio of 18 suggests a moderate valuation.

16
 Current and Quick Ratios:
These ratios assess an organization's immediate liquidity and capability to meet short-term obligations. Ratios
exceeding 1 denote favourable liquidity.
All entities exhibit robust liquidity with ratios surpassing 1. A higher ratio signifies improved short-term liquidity.
HCL and Tech Mahindra marginally lead in current and quick ratios, implying slightly stronger liquidity.

7
Debt to Equity Ratio:
21
This ratio mirrors the extent of debt within a company's capital structure. Lower ratios signify lower financial
risk.
INFOSYS and Tech Mahindra boast capital structures devoid of debt (0.00), implying reduced financial risk.
TCS and HCL portray minuscule debt to equity ratios, indicating nominal financial risk.
WIPRO possesses a slightly higher ratio of 0.19, alluding to a slightly increased debt level.

17
Return on Equity (ROE) and Return on Capital Employed (ROCE):
7
These ratios gauge a corporation's efficiency in generating profits from shareholder equity and total capital
employed, respectively.
TCS showcases the highest ROE and ROCE, suggesting adept utilization of equity and capital.
INFOSYS also manifests robust ROE and ROCE.
HCL, Tech Mahindra, and WIPRO reflect comparatively lower ROE and ROCE.

30
Earnings Per Share (EPS):
EPS represents earnings per outstanding share, with higher EPS indicative of enhanced profitability. TCS claims
the pinnacle EPS, underscoring robust profitability. INFOSYS and HCL also maintain relatively higher EPS.
WIPRO and Tech Mahindra report lower EPS when compared to their counterparts.
To conclude, TCS and INFOSYS emerge as formidable contenders across various ratios, with TCS excelling in
profitability, liquidity, and efficiency. WIPRO and Tech Mahindra appear to have relatively lower valuation
metrics, while HCL showcases performance ranging from moderate to robust across diverse ratios. It's pivotal to
note that a comprehensive analysis should encompass industry benchmarks and contextual elements.

17
Executive Summary
This report offers a brief outline of the IT services sector's analysis presented in the comprehensive report. The
report explores the present condition, trends, hurdles, and forthcoming estimations in the IT services field,
emphasizing its pivotal contribution to propelling digital transformation within diverse sectors.
The IT services domain remains an ever evolving and dynamic influence within the global corporate arena. Amid
a period characterized by swift technological progress, businesses spanning industries are harnessing IT services
to elevate operational effectiveness, foster innovation, and enrich customer interactions.
This document encapsulates primary discoveries and insights sourced from an exhaustive scrutiny of this industry.

18
Conclusion

The fiscal year 2023 bore witness to unforeseen economic challenges alongside avenues for growth, particularly
within the technology sector and the realm of Indian IT services. The global economic tableau remains uncertain,
compelling the adoption of strategic decision-making and adaptability to navigate the intricate interplay of
multifarious factors that influence the global economy and industries on a worldwide scale.
19
The growth of the IT service industry is being driven by a number of factors, including:
 The increasing adoption of cloud computing
 The growing need for cybersecurity solutions
 The increasing demand for big data analytics
 The rising popularity of mobile devices
 The growing need for automation
The top five IT services companies are well positioned to continue their growth in the coming years. All of them
are leaders in their markets and have strong innovation experience. They are also well positioned to benefit from
the growing adoption of cloud technology, cyber security solutions, big data analytics and mobile devices.

19
References
9
1. Wipro Annual Report 22-23
2. Infosys Annual Report 22-23
3. Tech Mahindra Annual report 22-23
4. Tata Consultancy Services Annual report 22-23
5. Money Control

20
 Similarity Report ID: oid:9832:41028913

10% Overall Similarity

Top sources found in the following databases:
8% Internet database 1% Publications database
Crossref database Crossref Posted Content database
7% Submitted Works database

TOP SOURCES
The sources with the highest number of matches within the submission. Overlapping sources will not be
displayed.

bseindia.com
1 2%
Internet

PES University on 2023-01-05

2 <1%
Submitted works

listicle.sgpgrid.com
3 <1%
Internet

philpapers.org
4 <1%
Internet

prepbytes.com
5 <1%
Internet

Liverpool John Moores University on 2023-06-06

6 <1%
Submitted works

Waikato University on 2011-08-22

7 <1%
Submitted works

theceo.in
8 <1%
Internet

Sources overview
 Similarity Report ID: oid:9832:41028913

Nottingham Trent University on 2023-01-25

9 <1%
Submitted works

steel.isi.edu
10 <1%
Internet

varindia.com
11 <1%
Internet

economictimes.indiatimes.com
12 <1%
Internet

supplychaindigital.com
13 <1%
Internet

Sheffield Hallam University on 2023-05-08

14 <1%
Submitted works

coursehero.com
15 <1%
Internet

Colorado Technical University on 2023-08-05

16 <1%
Submitted works

differencebetween.com
17 <1%
Internet

slideplayer.com
18 <1%
Internet

icsid.org
19 <1%
Internet

skadden.com
20 <1%
Internet

Sources overview
 Similarity Report ID: oid:9832:41028913

University of East London on 2023-07-26

21 <1%
Submitted works

tumblr.com
22 <1%
Internet

Chetana's R.K. Institute of Management and Research on 2023-08-09

23 <1%
Submitted works

Pennsylvania State System of Higher Education on 2011-01-16

24 <1%
Submitted works

catalog.libraries.psu.edu
25 <1%
Internet

digest.myhq.in
26 <1%
Internet

vmq.aaii.com
27 <1%
Internet

codeplaceweb.com
28 <1%
Internet

S.P. Jain Institute of Management and Research, Mumbai on 2023-06-08

29 <1%
Submitted works

money.com
30 <1%
Internet

kimeng.co.th
31 <1%
Internet

Babeș-Bolyai University
32 <1%
Publication

Sources overview
 Similarity Report ID: oid:9832:41028913

University of Edinburgh on 2022-12-14

33 <1%
Submitted works

Sources overview
 Similarity Report ID: oid:9832:41028913

Excluded from Similarity Report

Manually excluded text blocks

EXCLUDED TEXT BLOCKS

Environmental, Social, and Governance (ESG

Uttaranchal University, Dehradun on 2023-05-22

the Top 3 ITServices Brands

www.bseindia.com

national and international universities

www.bseindia.com

TECH MAHINDRATech Mahindra is an Indian multinational information technology

Maharishi University of Management on 2022-02-20

Digital transformation?Internet of Things (IoT)?Machine learning?Robotic process ...

www.credly.com

Profitability ratios
Manipal University on 2023-03-23

TATA Consultancy ServicesTata Consultancy services

www.prepbytes.com

Application development and Maintenance?Infrastructure Management?Business ...

University of Bedfordshire on 2023-03-10

Excluded from Similarity Report