Comprehensive Analysis of Tata Consultancy Service Limited, India

This report provides a detailed analysis of Tata Consultancy Services Limited (TCS), a prominent IT services firm based in India. It begins with an introduction to strategic management and its application to TCS, followed by a thorough examination of the company's operations, including its global presence and financial performance. The report conducts a SWOT analysis to identify TCS's strengths, weaknesses, opportunities, and threats, providing insights into its internal and external environments. It then delves into the company's key strategies, such as extending core IT services, customer-centric approaches, the Global Network Delivery Model (GNDM), strategic acquisitions, and non-linear business models. The report also explores the impact of external factors through PESTLE analysis, considering political, economic, social, and technological influences. Furthermore, it highlights TCS's employee engagement strategies and its partnerships with key technology vendors. Overall, the report offers a comprehensive overview of TCS's strategic choices and market position, concluding with an assessment of its future prospects and recommendations for continued success.

ANALYSIS OF TATA CONSULTANCY
SERVICE LIMITED, INDIA

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Analysis of Tata Consultancy Services Limited.........................................................................1
Strategies of Tata Consultancy Services Limited.......................................................................5
Analysis of implementation of strategies....................................................................................9
Critical evaluation of strategic choice of the company.............................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management is the process of planning, monitoring and analysis of activities of
the organization in order to accomplish goal of the company. It is the continuous planning
process in which managers analysis all strategies and cross functional business decisions before
implementing them in the workplace (Rath and et.al, 2017). Present report is based on Tata
Consultancy Service Limited. It is multinational firm provides IT services to consumers. It has
more than 371000 trained consultants across the world which offers tremendous services to
corporate consumers. Current assignment will produce a detail analysis of Tata Consultancy
Service Limited, India. Furthermore, its strategies and rationales of choosing these strategies will
be discussed in this study. In addition, critical evaluation of strategic choice of the company will
be done in this report.
TASK
Analysis of Tata Consultancy Services Limited
Tata consultancy services (TCS) is reputed subsidiary of Tata Group. It is an Indian firm
which operates it business across the world. It provides extremely well IT services, consultancy
services and business solutions to its corporate consumers (Opoku and Arthur, 2015). It operates
its business in many locations such as Africa, Asia-Pacific, Middle East etc. In the year 2016 it
has generated 16596 million revenues. As compare to last year its profitability has been
increased by 14.8% in this year.
SWOT analysis is the tool that can help in identifying the real internal position of the
firm in effective manner (Lee, Park and Krishnan, 2014). Tata Consultancy Services Limited has
many strengths and weakness. These are as following:
Strengths:
 It has strong command over domestic market. Tata Consultancy is enhancing its business
and getting high orders from Indian market.
 Strong brand image is another strong point of cited firm. Company is operating its
business across the world, clients buy its services due to its strong brand reputation
(Parashuram and Kamble, 2015).
 Strong ethics is another strength of the entity which helps the firm in minimizing future
complexity and making the corporation stronger.
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 It has more than 300000 skilled employees those who are providing services to
consumers across the world.
 It has many clients from diversified markets. Due to high exposure of diversified business
Tata Consultancy has diluted its risk to great extent (Andaleeb, 2016). It has strong portfolio of various services and products which attracts more consumers
towards the brand.
Weaknesses:
 Tata Consultancy has faced legal issues against Epic systems. In the year 2016, cited firm
has faced legal issues in which it had to pay amount as compensation to the Epic system
of worth 940 million. Due to this legal consequence brand image of Tata Consultancy
Service limited has been affected badly (Tandon, Haque and Mande, 2016). Its declining performance by Diligent is another weakness of the company.
Opportunities:
 Strong digital transformation technologies is the major opportunity for TCS because by
this entity will be able to grow well. Cloud based solutions is another opportunity for entity this can help in enhancing its
revenues and protecting its digital services to great extent.
Threats
 Changing IT laws in India and many other countries are creating problem for the
organization
 Intense competition is also a major threat to the entity because by this way it has become
difficult for the corporation to sustain in the market for longer duration (Bose and et.al,
2015).
TCS is the brand name which operates in IT and technological sector. It is popular for its
highly advance technological solutions. “Experience Certainty” is the main slogan which shows
that Tata Consultancy Service Limited is treating its consumers well and trying to provide them
extremely well services so that they retain with the brand for longer duration. It has become the
leading IT firm in India (Srinivasan, Tata Consultancy Services Limited, 2015). TCS has become
the top Indian IT service providers firm. Apart from this, it is at 10th rank worldwide.
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Illustration 1: Market share of TCS
Source: (Marketing stratgies -Tata Consultancy
service, 2017)
Tata Consultancy Service Limited has done segmentation of enterprises seeking IT
solutions. Its target segment is corporations and domestic clients. It has developed a trust in the
eye of consumers that is why it has become the leading brand across the world. India is the
country where limited IT firms are operating well. In such condition TCS was having high
opportunities to grow well (James and Santra, 2017). It has made strong and effective strategies
which has supported the entity in expanding their business across the world and satisfying needs
of corporate and domestic consumers.
TCS offers IT solutions to many industries such as banking, financial services, insurance,
medical, retail, manufacturing, construction etc. Tata Consultancy Service Limited follows tall
organizational structure (Rajan and Victor, 2014). It allocates responsibilities to its employees as
per their skills and abilities. There are three main level; technical, managerial and community
level. All these people work together and fulfil their responsibilities well. This organizational
structure supports entity in minimizing confusion and conflicts at the workplace (Oden and
Nathdwara, 2014).
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Tata Consultancy Service Limited has strategy of solid protection of money fluctuations
with currency preventions. This helps the firm in sustaining in the market for longer duration.
Another strategy of TCS is to utilize resources well. This helps the firm in minimizing cost and
enhancing its revenues (Babu, 2013). Strong relationship with international technology vendors
is another strategy of the company. It helps the entity in making its technological aspects
stronger. By this way entity is able to offer quality services to customers and meeting with needs
of corporate and domestic clients.
TCS also has acquisition strategy which helps the firm in expanding its business across
the world. Tata Consultancy Service Limited develops merger and acquisition with other
international well-known brand (Mukherjee and Mukerjee, 2017). IT supports organization in
gaining global presence and operates its business across the world. This helps the organization in
increasing its sales volume and increasing customer data base as well.
External analysis of TCS
External environmental analysis is another most important part fo organization, this helps
the firms in making new strategies and gaining success in the market. It can be done through
PESTLE analysis.
Political factor:
 Indian political structure is quit stable thus, TCS has high chance to grow well in this
market. Government supports these information technologies entities by making new
laws so that these firms can grow well and can contribute in the economic development
of the nation (Agarwal and Al Farooque, 2016).
Economic factor:
 It is another most important part of PESTLE analysis. Inflation, recession, deflation,
demonetization etc. are various element which impact on the external environment of the
company. By this way company fails to conduct its operations in effective manner and
sustaining in the market for longer duration (Deb and Basu, 2014).
Social factor:
 TCS has strong connection with corporate clients and its all domestic clients are
educated. They understand importance of IT. That helps the entity in growing well in this
sector.
Technological factor
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 It is another most essential part of external environment. Changing techniques,
continuous Updation can increase cost of the firm. Though TCS invests huge amount in
implementation of the latest technologies due to which its cost of operations is getting
high (Corporate Strategy, 2017).
Strategies of Tata Consultancy Services Limited
Tata Consultancy Service limited operates its business in growing global market. It
spends high amount in technological advancement. It helps the firm in offering quality IT
services to consumers. Huge investments in technologies is the great strategy of Tata
Consultancy Service limited, it helps the firm in improving its efficiency level and satisfying
needs of corporate and domestic clients. TCS operates its business across the world, it has many
branches in highly growing countries where other competitors are using highly advanced
technologies. That is why it has become necessary for the cited firm to adopt these techniques so
that it can gain competitive advantage and can sustain in this market for longer duration.
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Illustration 2: Strategies of TCS
Source: (Marketing stratgies -Tata Consultancy service,
2017)
Extend the core IT services:For long term growth TCS implement strategy of extend
the core IT services by expanding its business in more geographical locations. It develops strong
relationship with its customers, suppliers, vendors which help the entity in getting quality raw
material on time (Deb and Basu, 2014). By this way TCS has become able to meet the demand
on time and with efficiency. Company always adopts customer- centric approach. It is another a
great strategy that helps the entity in attracting new consumers and satisfying their needs. By this
way Tata Consultancy Services limited has become bale to enhance its customers data base and
increasing revenues to great extent. Customer centric approach assist the TCS in increasing
efficiency, improve accountability and providing superior customer services to clients.
Global network delivery model (GNDM): It is another strategy of the Tata Consultancy
Service Limited (Babu, 2013). This model or strategy support the cited firm in delivering
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services to consumers across the India. This model has supported the TCS in setting benchmark
of excellence in the field of information technology.
Strategic Acquisition: The main agenda of Tata Consultancy Service Limited is organic
growth of the firm. This acquisition strategy of the entity is quite impressive because with the
help of this entity becomes able to maximize its strength and minimize its loop falls (Oden and
Nathdwara, 2014). With the help of this, company has improved its strength verticals and has
become able to offer extensive services to global consumers.
Non-liner business model: It is another major strategy of the TCS which assist the firm
in increasing its revenues. In this model company is pursuing several initiatives which helps the
corporation in gaining success in this competitive environment. These are such as software
products, platinum based BPO services and iOn - an as – a- IT service solution for small business
(Bose and et.al, 2015).
Customer Centric: The vision of TCS is to create value for customers by offering them
innovative products and services. It believes in the value of leading change in operations as per
the requirement of market, integration with suppliers, consumers and employees, forecasting
environment and sharing of knowledge. These ideas support the entity in its growth and sustain
in the market for longer duration (Tandon, Haque and Mande, 2016). Though high investment in
technologies many create issue for the TCS because. Technologies gets changed or up dated
continuously. In such investment it has become difficult to spend such high amount again and
gain. By this way financial resources of the firm get affected which may create consequence in
running operations in the future.
Employee engagement and motivation: Company treats its workers as assets of the
organization. It always motivates them so that they can be retained in the workplace for longer
duration (Lee, Park and Krishnan, 2014). It is the great strategy of Tata Consultancy Service
limited. By providing rewards and recognition, entity encourage its staff members and retain its
skilled employees in the workplace for longer duration. This strategic process of the cited firm is
quite impressive and helps the corporation in improving its efficiency level and providing
extremely well services to corporate consumers and domestic clients on time. This aids in
satisfying consumers and gaining competitive advantage in such complex market (Rath and et.al,
2017). It involves its employees in decision making process, through all the essential decision are
taken by higher authorities but manager coordinate well with staff members and discuss each
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issue with them. That is why there are many workers those who are working in the organization
since long time and contributing well in the success of business unit.
Illustration 3: Long term growth strategy of TCS
Source: (Corporate Strategy, 2017)
Microsoft, IBM, Oracle, SAP are strategic partner of Tata Consultancy Service Limited.
These are partners support the firm in improving its efficiency level of business and performing
well in the market. This supports in gaining competitive advantage and meeting with
organizational goal. Though many IT firms of India are facing legal consequences because of
changes in IT laws (Srinivasan, Tata Consultancy Services Limited, 2015). It has also affected
the operations of TCS but due to skilled employees and capable managerial forces company has
survived this situation well and has modified its operations smoothly.
Generic business strategy of Tata Consultancy service Limited is quite effective which
is the part of Global delivery 24*7 model. In this, company only focus on building relationship
with its customers so that it can hold them in the organization for longer duration (Rath and et.al,
2017). By offering them timely delivery facility and quality framework or impressive IT
solutions entity can retain its consumers and can gain trust of them. This helps the cited firm in
increasing its sales revenues and sustaining in the market for longer duration. Furthermore,
differentiation in cost, resources and low end services is another great strategy of Tata
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Consultancy Service Limited which support the firm in attracting new customers towards the
brand and meeting with their needs (Lee, Park and Krishnan, 2014). Generic business strategy of
TCS support the firm in protecting the entity from currency fluctuations.
Analysis of implementation of strategies
In the year 2008 TCS has restructured its business and it has moved towards external
environment and has expanded its business across the world. Tata Consultancy Service limited
implemented these strategies too late but it has done it well which has supported the firm in
gaining success in international market. 42% of business is collected by the firm from banking
financial services and insurance sector (Rajan and Victor, 2014). In the year 2010 banks and
other financial institutes have faced tremendous shock and has faced crises situation which has
affected directly revenues of the company as well. In such condition TCS has implemented
generic business strategy in which it has started providing low cost Global IT services delivery to
its international consumers. It operated its business on Global delivery 24*7 model. This has
helped in attracting new corporate clients towards the brand. It has also focused on developing
relationship with the consumers and suppliers (James and Santra, 2017). This generic strategies
of the company was very effective and has supported the firm in increasing its revenues to great
extent. Differentiation in cost and resources has proved that TCS has capabilities to satisfy needs
of different consumers and attracting new consumers as well. That is the main reason that TCS
has become the successful IT firms in Indian and other markets. Managers have trained its staff
members well and due to which now people are able to understanding IT needs of corporate
clients and able to fulfil these requirements. It has adopted cost leadership strategies in order to
gain competitive advantage (Andaleeb, 2016).
The main aim of recent acquisition in Ireland and Latin America was to open delivery
centres in these countries in order to expand their business in this market. Company has
implemented diversification strategy. In the year 2008, Tata Consultancy Service limited has
made the biggest changes in its operations and has adopted integrated, customer-centric
approach. It was the expectation of the company that with the help of these strategies it will be
able to minimize its risk and will be able to meet with its organizational goal.
Diversification strategy of TCS have given profit to the entity because this has supported
the entity in gaining momentum in international market. Due to this strategy entity has increased
its growth rate by 40%. Due to this strategy TCS has become able to established its offshore
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centres in many countries such as Brazil, Uruguay and Mazico (Parashuram and Kamble, 2015).
It was great strategy but due to diversified products and services company fails to satisfy needs
of many customers. Strategies of the firms are made to set direction of the operations so that
overall organizational goal of entity can be achieved. While making any strategy TCS discusses
with its higher authorities and managerial level employees. It helps them in identifying
effectiveness of particular tactics. By this they make necessary correction their strategies before
implementing this in the workplace (James and Santra, 2017). Though employees do not have
much power to make any decision, they have to follow rules and regulation of the organization.
But higher authorities take time to time feedback from the workers in order to identify working
of the company. By this way they analysis whether it is profitable or not and they get innovative
ideas with discussion with the staff members. This innovative ideas support higher authorities in
planning strategies in effective manner and implementing in the workplace properly (Oden and
Nathdwara, 2014).
At the time of crises situation Tata Consultancy Service Limited was unable to satisfy its
consumers. Banks and other financial institution have affected the business of this cited firm
badly. Though company has strong relationship with its suppliers and consumers but its financial
need of the firm was not fulfilling with this strategy (James and Santra, 2017). In such condition
entity was unable to offer satisfactory services to its clients which has created consequences of
the firm. In such condition its diversified products strategy and generic strategy fail to meet with
its objectives well.
Company treats its consumers well and its clients have high power to influence the
business activities. Customer-centric approach or growth strategy some times creates
consequences for the entity because it fails to generate profit. It has to modify its products and
services as per the changing needs of clients (Tandon, Haque and Mande, 2016). Corporate
customers always want updated IT solutions, in such condition TCS has to invest high amount in
technology. Though it is good for the organization but it also increases its cost. And if needs of
consumers get changed then company has to modify its services again (Opoku and Arthur,
2015). That is why from past few years Tata Consultancy Service Limited is unable to generate
more revenues., It has to invest huge amount again and again in updating its technologies which
increases cost of the cited firm. In such condition break even point of corporation is not being
achieved which creates financial issues for the entity (Bose and et.al, 2015).
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