Report: Opportunity Analysis of Tata Consultancy Services (TCS)

This report presents an opportunity analysis of Tata Consultancy Services (TCS), focusing on its market position, competitive landscape, and potential for growth. The analysis considers factors such as TCS's strong financial performance, its investments in research and development, and its collaborative partnerships. It also acknowledges the impact of political and economic factors, including workforce dynamics and government policies. The report further explores the competitive environment, including key competitors like Infosys and Wipro, and examines the bargaining power of suppliers and buyers. Overall, the analysis aims to provide insights into the opportunities and challenges facing TCS in the IT services industry. This report is submitted to Desklib, a platform that provides AI-based study tools for students, including access to past papers and solved assignments.

OPPORTUNITY ANALYSIS OF TCS
Submitted By:

Tata Consultancy Services
■ Customers: TCS offers comprehensive business
portfolio and end-to-end technology service or process
of high quality and adaptability to client needs which
makes them most preferred, thus increasing their
market share in industry (Agarwal, 2016).
■ Company: TCS enjoys good financial ability with
revenue of 20.9 bn USD in 2019 (TCS, 2019). They
make extensive investment to enhance their
innovation through Research and Development efforts
which helps to insure market dominance. They also
have strong culture that supports innovation and
encourages multitude of opportunities.

Contd…
■ Collaborators: TCS collaborates with their
business partners to power their enterprise and
build strong partner ecosystem to promote
growth, enhance supply and distribution.
■ Context: TCS identifies political influence in
their markets where they are present to build
approaches conducive to taxation, laws and
policy framework of government. Similarly
economic contexts like change in workforce
strength and compensation enhances operation
cost of TCS and impacts cost structure.

Contd…
■ Competitors: TCS has few competitors like
Infosys, Wipro, IBM, Cognizant etc. each of
which has exert pressure to maintain
market share. Also substitute in IT
industry where TCS operates is less due to
higher capital expenditures, which
weakens threat from substitute offerings.
Moreover suppliers are limited in industry
of TCS which weakens their bargain power
and control over TCS (Chakraborty,
Munshi & Gupta, 2018). Buyers of TCS
have limited options to choose as firms in
IT service are less so even their power is
limited and have controlled impact over
TCS.

References
Agarwal, P. (2016). Strategic Innovations in Tata Consultancy Services. FIIB
Business Review, 5(1), 33-42. Retrieved from:
https://doi.org/10.1177/2455265820160104
Chakraborty, P., Munshi, A., & Gupta, N. (2018). The Impact of Inventory
Management Practices on Financial Performance of Tata Consultancy
Services Limited. OJAS, 18. Retrieved from:
https://jaipuria.edu.in/media/January_June_2018.pdf#page=22
TCS (2019). TCS financial release. Retrieved from:
https://www.tcs.com/content/dam/tcs/investor-relations/financial-statements/
2018-19/q4/IFRS/Press%20Release%20-%20USD.pdf