Tata Consultancy Services Ltd. (TCS) - The Smart Investor

Strong presence in Latin
America has enabled TCS to
win some key local contracts
1. Bank of Pichincha- $140 mn.
2. Social Security Institute of Mexico-$200 mn.
3. Civil registry for Chile’s Department of Justice-$69 mn.
Focus on Indian market
Indian IT market is one of the fastest growing markets in the world in terms of IT
spend. Going forward, also it is estimated to outpace the growth in worldwide IT
spends by around 3 times.
(In USD Bn) FY03 FY07 CAGR %
(FY03-FY07)
FY11E CAGR %
(FY07-FY011E)
Indian IT services spend 2.4 5.6 23.6% 10 15.6%
World-wide IT services spend 350 470 7.6% 588.9 5.8%
(Source: CRIS INFAC)
TCS’s revenue from India is 9% of its total revenue (9M FY08). With the increase
in total size of Indian IT market, which is growing at a faster rate than that of Global
market, TCS is targeting to double its revenue from India within next 18 months.
TCS expects growth to come from government and BFSI verticals where it enjoys
leadership position. In government vertical it commands 32% market share and in
BFSI, it is serving India’s largest bank i.e. SBI and its associates.
Talent pool management
IT service industry being human resource intensive; ability of company to attract,
retain and impart training in new technologies to employees, are key factors as it
provides the certainty in respect of delivering the agreed level of services (in terms
of quality) to clients.
TCS is considered to have one of the best human resources policies in Indian IT
industry enabling it to win for four consecutive years i.e. from 2004 to 2007 the
Dataquest award for the ‘Best Employer in the Indian IT industry’. This is also
reflected from the lowest attrition rate of employees of TCS among tier I Indian IT
companies.
(Source: Company)
TCS has set up training facility in India as well as outside India (U.S., China, Hungary
and Uruguay), having the capacity to train 20,000 plus employees per annum. This
enables it to recruit the talent from higher number of institutions to meet its need of
Tata Consultancy Services Limited ACMIIL
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