Tata Consultancy Services (BOM:532540)

QUOTE AND NEWS
The Hindu Business Line  10 hrs ago  Comment 
The market valuation of top five Indian companies fell Rs 42,519.88 crore last week, with IT major TCS taking the biggest hit.While TCS, ITC, CIL, HDFC Bank and Sun Pharma saw losses in the...
The Economic Times  Oct 10  Comment 
"We do expect TCS to have a very strong quarter especially because they are going to integrate the revenues of the Mitsubishi joint venture."
The Economic Times  Oct 9  Comment 
The rally in the index was led by gains in ICICI Bank, Infosys, L&T, TCS, Reliance Industries and TCS.
The Economic Times  Oct 8  Comment 
The S&P BSE Sensex managed to recoup losses after falling 84 points in trade on Wednesday, led by losses in Infosys, Sun Pharma, TCS and DRL.
StreetInsider.com  Oct 7  Comment 
52-Week High: Lakeland Industries, Inc. (Nasdaq: LAKE) $10.74. Lakeland Industries gaining as imvestors could be responding to a CNBC video: "Ebola scare sends prepper kits flying off the shelves." In addition, Arenal Capital Partners LP sold...
TheStreet.com  Oct 7  Comment 
NEW YORK (TheStreet) -- Shares of The Container Store Group, Inc.a are plummeting 20.53% to $17.40 today after the storage and organization companyareported lower than expected third quarter earnings late Mondayaof $5.1 million, or 11 cents a...
newratings.com  Oct 7  Comment 
NEW DELHI (dpa-AFX) - Tata Consultancy Services Ltd. said its Vice Chairman S. Ramadorai had stepped down from the board of the company effective October 6, on attaining the age of 70, as per company's ploicy. Ramadorai, who is also advisor...
SeekingAlpha  Oct 7  Comment 
By SA Transcripts: The Container Store Group, Inc. (NYSE:TCS) Q2 2014 Results Earnings Conference Call September 24, 2014, 04:30 PM ET Executives Anne Rakunas - ICR, Inc., IR William A. (‘‘Kip’’) Tindell, III - CEO and...
StreetInsider.com  Oct 6  Comment 
GT Advanced (NASDAQ: GTAT) 15% HIGHER; bounces after getting crushed 93% intra-day after filing Chapter 11. The Container Store Group (NYSE: TCS) 12% LOWER; reported Q2 EPS of $0.11, in-line with the analyst estimate of $0.11. Revenue for the...
Clusterstock  Oct 6  Comment 
Shares of The Container Store were down more than 19% in early trade Tuesday after the company on Monday night reported same-store sales that fell 0.4% and second-quarter revenue that came in below expectations. On Monday afternoon, the...




 

Tata Consultancy Service (BOM:TCS) is an Indian software services and consulting company. It is one of India's oldest and largest providers of information technology and business process outsourcing services. As of 2007, it is Asia's largest information technology firm. TCS, a part of the Tata group, provides information technology and management consultation services to organizations in more than 53 countries. The company offers e-business, application development and maintenance, architecture and technology consulting, engineering, security, infrastructure development and management and quality consulting services.

In addition, TCS offers software packages for electronic banking, insurance billing, customer relationship management, and hospital management. It caters to finance and banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, energy and utility industries. The company generates around 19% of its revenues from the manufacturing industry, and 6% of its revenues from its engineering and industrial services (EIS) business.

The company was founded in the year 1968 and is based in Mumbai. It has over 89,000 trained IT consultants in 47 countries.

Company Overview

History

Tata Consultancy Services was established in the year 1968. It began as the "Tata Computer Centre", a division of the Tata Group, whose main business was to provide computer services to other group companies. However, the potential of computerization and computer services was realized early on, and an electrical engineer from the Tata Electric Companies, Fakir Chand Kohli, was brought in as the first General Manager. Soon after, the company was named Tata Consultancy Services.

TCS's first software export project was undertaken in 1974 when it converted the Hospital Information System from Burroughs Medium Systems COBOL to Burroughs Small Systems COBOL. This project was carried out entirely in TCS Mumbai on the ICL 1903 Computer. In 1980, TCS and a sister Tata firm accounted for 63% of the Indian software industry exports, $4 million shared by 21 firms. In 1984, TCS set up an office in the Santacruz Electronics Export Processing Zone (SEEPZ) – Mumbai.

The early 1990s saw a tremendous surge in TCS's business, which also resulted in a massive recruitment drive by the company. In early and mid-1990s, TCS re-invented itself to become a software products company. In the late 1990s, to accelerate its revenue growth, TCS decided to employ a three-pronged strategy – developing new products with high revenue earning potential, tapping domestic and other fast growing markets and focusing on inorganic growth through mergers & acquisitions. In late 1998, the company decided to concentrate on new revenue opportunities including Y2K and Euro conversion. E-business was a major area of focus in the late 1990s.

In 1999, TCS started an annual IT Quiz called TCS IT WIZ in India. It has been a great success and a matter of craze among young students inclined towards IT.[1]

In 2004, TCS became a publicly listed company.

In 2008 Tata Consultancy Services was involved in a variety of industries. Some of these included telecom, government, insurance, manufacturing, high tech, and banking and financial services. They offer product life cycle management and systems integration to their customers.

Services

Tata Consultancy Services offers the following services to its customers:

  • IT Solutions and Services (74.9% of net sales): This segment develops IT products for and offers IT services to customers. Some of these IT products include software applications and systems for performance management, customer relationship management and supply chain management. Some of the company's IT services include software application management, system integration, data mining and data quality management.
  • Business Process Outsourcing (11.3% of net sales): This segment helps customers automate and complete specific non-core business tasks. Some of these non-core business tasks include payroll, finance and accounting, and human resources.
  • Engineering and Industrial Services (5.4% of net sales): This segment helps customers engineer and manage products, design and automate plants, and source for and manufacture components.
  • IT Infrastructure Services (6.5% of net sales): This segment builds and maintains IT infrastructure for customers.
  • Asset Based Offerings (3.6% of net sales): This segment develops IT products for and offers IT services to customers that operate specifically in the banking, financial services and insurance industries.
  • Global Consulting (3.4% of net sales): This segment advises customers on management and IT issues.

Industries

Tata Consultancy Services sells to companies in the following industries:

  • Banking, Financial Services and Insurance (Rs. 10,091 crore or 44.1% of net sales)
  • Retail and Distribution (Rs. 1,476 crore or 6.5% of net sales)
  • Others (Rs. 5,360 crore or 23.4% of net sales): Industries that fall under this category include Transportation, Life Sciences and Health Care, Energy and Utilities, Media and Entertainment, Travel and Hospitality, Government etc.

Trends and Forces

Tata Consultancy Reaps The Benefits From Outsourcing

For most US companies, the most expensive part of running a business is employing people. These companies have to deal with workers unions, minimum salary laws, overtime, etc, all of which increase costs and decrease profits. That is why when companies have the opportunity to hire cheaper labor, they pounce on the opportunity. When US companies go to India to look for cheap labor, Tata Consultancy benefits as it helps provide the solutions that companies are looking for. Additionally, because Tata is primarily an IT service provider, the company can reach out to companies in almost every industry. The more companies that look to outsource their labor, the more business Tata is getting, which helps the company's bottom line.

Tata Is Susceptible To Global Economic Conditions

Because Tata is an IT service provider, the company relies on the growth and expansion of other businesses for revenue. During tough economic times, businesses consolidate and thus the demand for Tata's services declines, hurting the company's bottom line.

Competition

Domestic competitors include:

Overseas Competitors:

References

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