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Syntel Case Study For Environmental Analysis
Syntel Case Study For Environmental Analysis
Mission
To create new opportunities for our clients by harnessing our passion, talent, and innovation
Vision
$3 billion revenues and $10 billion market capitalization by 2015.
Environmental Analysis
PESTEL
PESTEL
Political
Stability of government Favorable Government Policy
Economic
Decreasing Rupee value hits profits Lack of proper infrastructure Energy Prices are very High
Increasing wages in India, Decreasing wages in neighboring countries Fast diminishing English language advantage Attrition
Social
Technology
Ever changing Skilled manpower availability Good telecom system, connectivity
Environmental
Infrastructural hurdles Add to Cost Inflation
Legal
The legal system is complicated and resolution of issues takes a long time
SWOT
27 years old company Development centers both in US and India Listed in NASDAQhelps build the brand First firm to run an around-the-clock IT project approach. Approximately 90 percent of revenues are from repeat/referred customers, one of the best rates in the IT services business. Many Awards and several media awards Since not an Indian company, the brand in India is not known
WEAKNESS
STRENGTHS
SWOT
OPPURTUNITIES
There is a heavy downward pressure on IT budgets resulting in increase in off-shoring by companies Business Process Outsourcing, and particularly, off-shoring is increasing in order to reduce process costs Under penetrated verticals Telecom services, retail & healthcare present potentially huge opportunities New opportunities - European, Japanese, African markets Competition from low-cost locations such as China, Philippines, Romania can pose a threat. Wages are 30-50 percent less than the wages of a comparable Indian programmer Legislation against off-shoring by governments in client markets, to save jobs for local population, may result in reduced off-shoring to India With increasing competition, margins are reducing for Indian IT firms as they try to retain business
THREATS
Environmental Analysis
Mckinsey 7-S framework
Supportive Leadership
Portfolio Analysis
Portfolio Analysis
e-Business development and integration
Data warehousing
CRM and ERP
Industry Analysis
Porters 5 Forces
Porters 5 Forces
Time & Cost Specialist Knowledge Economies of Scale Cost Advantage Technology protection 8 8 8 8 8
Competitive Rivalry
No of Competitors
Quality differences Switching Cost Customer Loyalty
BUYER Power
No of Customers Size of each High Variable
Supplier Power
No of Suppliers
Size of supplier Ability to substitute Cost of Changing
High
Low Low -
High
Variable High Variable
Threat of SUBSTITUTES
High Low
Top IT Players
Top Global IT player Microsoft IBM Accenture CapGemini EDS HP Top Indian IT player Infosys TCS Wipro Satyam HCL
Internal Analysis
BCG Matrix
BCG Matrix
Invest
Open System Europe Mkt Animation Indian Mkt Telecom
Divest
E-Business
Team Sourcing
Cash Cows
Mainframe Projects
Specifically Financial Project
Liquidate
Internal Analysis
GE McKinsey
GE McKinsey
Major SBUs in Syntel:
Financial Services HealthCare and Life Sciences Automotive Insurance (90% of Revenue earned from these Verticals)
GE McKinsey
Q407 Revenue by Verticals
Financial Services 71% HealthCare and Life Sciences 13% Automotive 7% Insurance 5% Others 4%
GE McKinsey
Q407 Revenue by Operations
Application Outsourcing 65.5% Knowledge Process Outsourcing 18.6% E-Business 10.4% Team Sourcing 5.5%
GE McKinsey
Market Attractiveness Medium Low High
KPO Application Outsourcing
Team Sourcing
E-Business
High
Low
Internal Analysis
Value Chain
USP
Price Differentiator Retaining Old Clients
Strategy
MISSION
To create new opportunities for our clients by harnessing our passion, talent, and innovation
VISION
To be recognized and respected as one of the Fortune 500 companies in the coming 5 years
Strategy
Market Penetration
European Markets Australian Markets Indian Markets
Strategy
Get listed on the BSE
Will help in getting recognition in the Indian Market Raise money for expansion into other markets
Learning Curve
Retention of Old Clients
Diversification
Experience Curve
Customer Retention Attracting New Clients Knowledge Base Expansion Domain Expertise
Internal
Start Internal Universities
For each Vertical Employees enroll into these universities to learn about the business Different levels from basic knowledge to getting business
Thank You