7143221 Tata Consultancy Services
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Tata Consultancy Services Limited (TCS)
Tata Consultancy Services Limited (TCS) is the world-leading information technology consulting, services, and business process outsourcing organization that envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value. TCS commenced operations in 1968, when the IT services industry didn’t exist as it does today. Now, with a presence in 34 countries across 6 continents with over 100,000 employees it is Asia’s largest IT Services firm with annualized revenue of over US 4.3 Billion (2006-2007). Seven of the Fortune Top 10 companies are among our valued customers. TCS is a part of one of Asia's largest conglomerates - the TATA Group - which, with its interests in Energy, Telecommunications, Financial Services, Chemicals, Engineering & Materials, provides us with a grounded understanding of specific business challenges facing global companies. Few important names - Ratan Tata, Chairman of the Board S. Ramadorai, CEO & MD S. Mahalingam, CFO N. Chandrasekhar, COO S. Padmanabhan, EVP, Head - HR&OD P. Vandrewala, EVP, Head- Corporate Affairs TCS provides following services: • Application Development and Maintenance • Business Process Outsourcing • E-Business • Engineering and Industrial Services • Infrastructure Services • Quality and IT Process Consulting • e-Security TCS provides services & solutions to customers across following industries: • Banking • Financial Services • Insurance • Telecom • Manufacturing • Media and Entertainment • Retail and Consumer Goods • Transportation, Travel & Hospitality • Healthcare and Life Sciences • Energy & Utilities Products – Quartz - Payments Processing Solution FinDNA - Anti Money Laundering Solution FNS BANCS - Core Banking Solution EClearSettle - Clearing & Settlement Solution Tax Mantra[4] - Integrated Tax And License Solution eIBS - Integrated Brokerage Solution IIMS - Integrated Insurance Management System NCS - Custody Services OPAL - Integrated Payment and Loyalty Card Solution
Tata Consultancy Services Limited (TCS)
Solutions 1). By Enterprise product platform - TCS leverages its partnership with SAP and Oracle to help organizations improve enterprise-wide collaboration and achieve business excellence. TCS' experience in enterprise platforms enables organizations to realize the true value of their investments in enterprise platforms 2). By Business Application - BI, KM, CRM, SCM, RFID, E-learning, Call Management, Content Management, Master Data Management. 3). TCS Technology Products - From securing online transactions, supporting an enterprises help desk function to accelerating software development, TCS provides solutions that help enterprises increase operational efficiency • TCS Data Cleansing Framework - TCS Data Cleansing Framework helps in consolidating customer database based on name and address matching by cleaning several customer databases. A special algorithm matches the name with addresses and weeds out duplicate entries. Enterprises benefit from standardized data that reduces data-storage, mailing and processing costs and improves customer service TCS Business Rules Engine- TCS Business Rules Engine helps users define and modifying rules in the software by altering the rulebase rather than modify the entire application code. Users can separate business rules from the application code that helps users modify the rules frequently without the need of IT intervention. This business rules engine makes applications flexible and more adaptable to meet dynamic business demands TCS Experience Based Knowledge Management Solution – TCS Experience Based KM is an artificial intelligence case based reasoning solution that captures, refines, organizes and maintains organizational knowledge to automate resolution capabilities. Its ability to identify cases based on past experience result in faster resolution of queries costeffectively TCS Call Management Solution – TCS Call Management Solution is a robust, featurerich and scalable helpdesk and customer support solution framework that helps organizations deliver faster, more consistent support to their critical business applications and infrastructure TCS Public Key Infrastructure Suite – TCS PKI Suite is a Public Key Infrastructure (PKI) suite provides a comprehensive secure environment for electronic communication. With a network of Certifying Authorities, Registration Authorities, Directories of Digital Certificates and a range of protocols, standards and policies, TCS Dhruvam ensures integrity, authenticity and non-repudiation across online transactions TCS Certificate Validation Server – TCS Certificate Validation Server provides a strong, flexible and highly scalable solution to meet these objectives. It uses Online Certificate Status Protocol (OCSP) to facilitate accurate, scalable and real-time validation of Digital Certificates. TCS Certificate Validation Server supports industry standard third party OCSP systems and is compliant RFC 2560 standards TCS eLearning Effectiveness Measurement Solution – TCS eLearning Effectiveness Measurement tool helps organizations to track effectiveness of their training and development initiatives. This tracking tool, flexible enough to be easily customized, is similar to any LMS in terms of basic functionalities like learner data tracking and generating reports
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Tata Consultancy Services Limited (TCS)
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TCS File Authentication Solution – TCS File Authentication Product provides authentication, non-repudiation and integrity to all kinds of electronic documents using digital certificates. It provides assurance over/regarding the source, privacy, and validity of electronic documents, and the data contained within.
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TCS Code Generator Framework – TCS Code Generator Framework provides an integrated environment along a product or application development life-cycle. By significant re-use of codes, it speeds up new application development, legacy system integration, or making enhancements. Development teams spread across geographies benefit from increased consistency and communication with common code repositories and well-defined processes TCS Multimedia Authoring Solution – TCS Multimedia Authoring Tool helps organizations create their content modules easily and quickly. With its ability to support graphics, audio, and video media formats, users can make learning a rich and engaging experience for their audience. Its simple interfaces do not require any specialized programming skill or knowledge to operate. Being compliant with SCORM standards, TCS eVOLv can be easily deployed on most learning management systems TCS Form Authentication Solution – TCS Form Authentication Solution enables webbased transactions to be digitally signed and authenticated, ensuring data accuracy, security, and privacy TCS Time Stamping Solution – TCS Time Stamping Product provides time stamping or digital notarization to electronic transactions and documents. Using tamper-proof cryptographic technologies to certify electronic transactions, TCS Saakshi assures the execution of transactions by providing time stamp tokens that indicate the date and time of execution
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4). By Industry Products – • TCS Clinical Trial Management Solution – TCS Clin-e2e is a Clinical Trial Management Solution that addresses all four phases of clinical trials. It provides a secure online environment for electronic data capture and integrates sites and labs with sponsors. Pharmaceutical companies are able to create customized Case Report Forms (CRF) and investigate clinical data more effectively. With TCS Clin-e2e, pharmaceutical companies can successfully monitor progress of global trial sites, reduce time and cost of clinical trials and ensure regulatory compliance with global frameworks TCS Energy Billing System (EBS) – TCS' Energy Billing System automates and manages the Meter-to-Cash process of a power utility company. It covers Consumer Management, Meter Management, Application Processing, Connection, Tariff Management, Bill Generation, Conflict Management, Document Tracking, Payment etc. The solution takes care of applications for new connections, load enhancement/reduction, name and address changes etc. It maintains meter attributes and keeps provisions for interfacing with Meter Reading Instrument (MRI). It uploads meter readings from Automatic Meter Reading (AMR) devices for commercial and industrial consumers. The solution also deals with grievance handling and complaints from the consumers
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Tata Consultancy Services Limited (TCS)
• TCS Hospital Management Solution – TCS Hospital Management Solution helps large and medium-sized hospitals streamline patient care, hospital administration, ancillary services and clinical support activities. With TCS Hospital Management Solution, healthcare providers can be assured of better administration and control, enhanced fund management, better reporting to aid strategic decision making and improved patient care and satisfaction TCS Energy Accounting System (EAS) – TCS’ Energy Accounting System (EAS) adopts statistical processes to find out the energy consumption trends. It maps the physical network (e.g. sub division, division, circle offices etc.) to facilitate substation wise, transformer wise or feeder wise loss calculation. The solution calculates the efficiency of different distribution transformers (DTR), feeders and substations at regular intervals, providing energy accounting data and reports at various administrative and functional levels TCS Enterprise Integration and Control Environment Solution – TCS Enterprise Integration and Control Solution for Energy and Utilities companies helps integrate enterprise functions like materials management, energy billing, energy accounting, operations and maintenance, finance and HR. Energy and Utilities enterprises are able to increase responsiveness through enterprise-wide visibility, automate billing and settlement processes, improve asset utilization and build profitable customer relationships TCS Fuel Management System (FMS) – For any energy and utilities company, forecasting, benchmarking and operational activities pertaining to estimation of fuel requirements, selection of fuel supplier, quality check, optimal fuel mix blending, transportation from source to plant and calculation of fuel efficiency are critical. FMS adopts a formula-based approach to calculate the fuel estimate for a particular unit of the plant within a date range. The solution uses parameters like quality analysis of the supplier stock and pilferage reports of the transporter based on previous contracts to help in fuel supplier/transporter selection. The solution possesses an LPP-based coal mixing tool which predicts an optimum mix of coal of various grades. The solution captures all fuel logistics and transportation business processes. The solution manages stringent quality check processes on the procured coal stock from vendors as well
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5). TCS BaNCS – Products and Solutions for Banking, Insurance and Capital Markets. TCS BaNCS Banking, with solutions in core banking, payments and regulatory compliance, already meets the needs of a diverse range of organizations including profitable micro-lending organizations, eurozone powerhouses, and the operators of two of the largest branch networks in the world TCS BaNCS Insurance solutions include line-of-business products for property and casualty, workers’ compensation, extended warranty, individual life, group life and reinsurance. Also, TCS BaNCS Insurance offers the Product Workbench, a solution that supports the rapid deployment of new insurance products; and the Agent's Workbench, for lead generation and customer relationship management. The TCS BaNCS suite of solutions helps both buy-side and sell side firms to implement robust, error-proof, STP-enabled and highly-scalable processes for Securities Trading, Trade Processing, Clearing and Settlement, Custody, Portfolio Accounting and Corporate Actions administration. TCS BaNCS Capital Markets solutions are based on modern technologies which
Tata Consultancy Services Limited (TCS)
integrate easily into existing infrastructures in a SOA framework, supporting straight-throughprocessing (STP) initiatives and market connectivity standards
Clients in UK Private Sector – Aviva, Balfour Beatty, Barclays, Boots, BP, British Airways, British Telecom, Cadbury Schweppes, Dunlop Aerospace, Forth Ports, Ingersoll-Rand International, Morgan Stanley, Motorola, Mowlem, National Grid, Ordnance Survey, Prudential, Somerfield Stores, Standard Life,Thomas Cook, United Utilities Public Sector – Fujitsu Alliance, UK's Department of Work and Pensions under Unity American Clients – American Express, AIG, Boeing, Citibank, Dell Computer Corporation, The Gap, General Electric, Hewlett-Packard, Kellogg's, Lucent Technologies, Nike, The State of Pennsylvania, The State of Montana, Prudential Financial, Qwest ,Target Corporation, Agilent Technologies, Eli Lilly, Halliburton, CVS Pharmacy Other Major Clients – ABN Amro, Deutsche Bank, Nortel Networks, Nielsen Financials: Highlights for Quarter Ended September, 2007 • EPS at Rs 12.79 in Q2 • 51 new clients added in Q2 • 12,523 employees joined the company in Q2 • Attrition steady at 11.5% LTM (including BPO) • Quarterly dividend of Rs 3 per share • Q2 Revenues at Rs 5,640 cr ($ 1.42b); up 25.4% Y-o-Y, • Q-o-Q Revenues: Up 8.4% in Re terms; up 10.8% in $ terms • Q2 Net Profit at Rs 1,252 cr ($ 314m) up 22.8% Y-on-Y • Q-o-Q Net Profits: Up 4.1% in Re terms; up 6.3% in $ terms • Full Services Play: Over 50% of Q2 revenues from new services • First India-based IT firm to cross landmark of 100,000 employees • TCS amongst Forbes Asia’s FAB 50, best traded companies in Asian market • Market Capitalization close to $ 28 billion H1 Revenues at Rs 10,843 cr ($2.7b) up 25.3% Y-o-YH1 Net Profit at Rs 2,455 cr ($ 610m) up 29% Y-o-Y Stock Information as on Sunday, October 19, 2007 • Price 1,106.75 • • Day High 1,151.00 Bid 0.00 Day Low 1,080.10 Offer 0.00
Tata Consultancy Services Limited (TCS)
• • • 52 Week High 1,399.00 Change On Day -12.10 52 Week Low 978.00 Daily Volume 607,426
Source of revenue: • TCS’ Banking, Financial Services & Insurance customers contributed 42% of TCS Global Revenues in FY07 ,Up from 38.5% in FY05, YoY growth of 44% in FY 2007
• Building solid traction outside ADM. For the first time, contribution from mainstream application development and maintenance stood at less than 50% of overall revenues. This emphasizes a growing shift towards high-value and faster-growth services such as infrastructure management (31.2% growth Q-o-Q), assurance or testing (24.8% growth Q-o-Q), BPO (13.9% growth Q-o-Q), consulting (19.2% growth Qo-Q), and enterprise solutions (11.9% growth Q-o-Q). On an organic basis, the company has built the largest practice in the fast growing remote infrastructure management among Indian vendors.
• BFSI momentum and commentary allay concerns over potential impact of difficulties in the US. The BFSI vertical grew ~9% Q-o-Q. Notably, this vertical was characterized by robust double digit sequential offshore growth. The company has indicated that it witnesses healthy deal flow in this vertical from both Europe (mainly, the UK) and the US. Notably, convergent commentary from TCS’ peer Infosys, with regards to the BFSI market in the US, allays concerns that top-tier Indian companies are beginning to see the impact of the sub-prime difficulties in the US.
• TCS BaNCS Poduct (Banking and Financial Market) Revenue Rs. 4184 Million, 2% of total revenue TCS Strategy
Tata Consultancy Services Limited (TCS)
1. TCS is building a solid traction outside Application Development and Maintenance. There is a growing shift towards Infrastructure Management, testing, BPO, consulting and enterprise solutions. 2. Less dependence on US (dropped to 50%), more clients from Europe. 3. Client traction in the mid-range bracket has picked up. ($20-50 Million) 4. Focus on near-shoring strategy with centers in Argentina, Brazil, Chile and Uruguay.
TCS Competitor (Infosys): TCS is an integrated service provider and has started investing in its consultancy division with target revenue of $650 million by 2009. Looking at the competitive service offerings and revenues, Infosys is the nearest competitor of TCS. Infosys revenues are just shy of around billion dollars compared to TCS. An Infosys product like Finacle is growing in popularity and is giving heads on competition to TCS BaNCS core banking solution. Similar to TCS, Infosys has also their consulting division targeted to provide consultancy to current customer base and new clients. In the last fiscal year TCS and MBT are the only two companies to crack a billion dollar projects.
Q1FY07 Application Development & Maintenance Business Intelligence Engineering & Industrial Service Infrastructure Services Enterprise Solutions Global Consulting Asset Leverage Solution Assurance Services Business Process Outsourcing 21,550 3,606 2,569 2,818 5,388 1,326 1,078 746 2,362
Q1FY08 26,794 4,995 2,757 2,966 6,451 1,561 1,717 1,717 3,070
CQGR 6 8 2 1 5 4 12 23 7
Whereas, Infosys is still in search of cracking big deals to increase its top line and customer base. BFSI and Insurance practice is the major revenue source at TCS and Infosys both. It depends on how the companies innovate and holistically market there products and services to reach to global clients. Infosys Revenue (2006-07) : Rs 13149 cr Profit : Rs 3777 cr Share price (as on 19 oct) : Rs 1908
Infosys is opening centers in US near shore (like Brazil, Canada) areas and planning to
compete with TCS with commercial licensing of its products already patented or under patent process.
Tata Consultancy Services Limited (TCS)
Application services and development still the largest revenue stream for both Infosys and TCS.
Tata Consultancy Services Limited (TCS) is the world-leading information technology consulting, services, and business process outsourcing organization that envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value. TCS commenced operations in 1968, when the IT services industry didn’t exist as it does today. Now, with a presence in 34 countries across 6 continents with over 100,000 employees it is Asia’s largest IT Services firm with annualized revenue of over US 4.3 Billion (2006-2007). Seven of the Fortune Top 10 companies are among our valued customers. TCS is a part of one of Asia's largest conglomerates - the TATA Group - which, with its interests in Energy, Telecommunications, Financial Services, Chemicals, Engineering & Materials, provides us with a grounded understanding of specific business challenges facing global companies. Few important names - Ratan Tata, Chairman of the Board S. Ramadorai, CEO & MD S. Mahalingam, CFO N. Chandrasekhar, COO S. Padmanabhan, EVP, Head - HR&OD P. Vandrewala, EVP, Head- Corporate Affairs TCS provides following services: • Application Development and Maintenance • Business Process Outsourcing • E-Business • Engineering and Industrial Services • Infrastructure Services • Quality and IT Process Consulting • e-Security TCS provides services & solutions to customers across following industries: • Banking • Financial Services • Insurance • Telecom • Manufacturing • Media and Entertainment • Retail and Consumer Goods • Transportation, Travel & Hospitality • Healthcare and Life Sciences • Energy & Utilities Products – Quartz - Payments Processing Solution FinDNA - Anti Money Laundering Solution FNS BANCS - Core Banking Solution EClearSettle - Clearing & Settlement Solution Tax Mantra[4] - Integrated Tax And License Solution eIBS - Integrated Brokerage Solution IIMS - Integrated Insurance Management System NCS - Custody Services OPAL - Integrated Payment and Loyalty Card Solution
Tata Consultancy Services Limited (TCS)
Solutions 1). By Enterprise product platform - TCS leverages its partnership with SAP and Oracle to help organizations improve enterprise-wide collaboration and achieve business excellence. TCS' experience in enterprise platforms enables organizations to realize the true value of their investments in enterprise platforms 2). By Business Application - BI, KM, CRM, SCM, RFID, E-learning, Call Management, Content Management, Master Data Management. 3). TCS Technology Products - From securing online transactions, supporting an enterprises help desk function to accelerating software development, TCS provides solutions that help enterprises increase operational efficiency • TCS Data Cleansing Framework - TCS Data Cleansing Framework helps in consolidating customer database based on name and address matching by cleaning several customer databases. A special algorithm matches the name with addresses and weeds out duplicate entries. Enterprises benefit from standardized data that reduces data-storage, mailing and processing costs and improves customer service TCS Business Rules Engine- TCS Business Rules Engine helps users define and modifying rules in the software by altering the rulebase rather than modify the entire application code. Users can separate business rules from the application code that helps users modify the rules frequently without the need of IT intervention. This business rules engine makes applications flexible and more adaptable to meet dynamic business demands TCS Experience Based Knowledge Management Solution – TCS Experience Based KM is an artificial intelligence case based reasoning solution that captures, refines, organizes and maintains organizational knowledge to automate resolution capabilities. Its ability to identify cases based on past experience result in faster resolution of queries costeffectively TCS Call Management Solution – TCS Call Management Solution is a robust, featurerich and scalable helpdesk and customer support solution framework that helps organizations deliver faster, more consistent support to their critical business applications and infrastructure TCS Public Key Infrastructure Suite – TCS PKI Suite is a Public Key Infrastructure (PKI) suite provides a comprehensive secure environment for electronic communication. With a network of Certifying Authorities, Registration Authorities, Directories of Digital Certificates and a range of protocols, standards and policies, TCS Dhruvam ensures integrity, authenticity and non-repudiation across online transactions TCS Certificate Validation Server – TCS Certificate Validation Server provides a strong, flexible and highly scalable solution to meet these objectives. It uses Online Certificate Status Protocol (OCSP) to facilitate accurate, scalable and real-time validation of Digital Certificates. TCS Certificate Validation Server supports industry standard third party OCSP systems and is compliant RFC 2560 standards TCS eLearning Effectiveness Measurement Solution – TCS eLearning Effectiveness Measurement tool helps organizations to track effectiveness of their training and development initiatives. This tracking tool, flexible enough to be easily customized, is similar to any LMS in terms of basic functionalities like learner data tracking and generating reports
•
•
•
•
•
•
Tata Consultancy Services Limited (TCS)
•
TCS File Authentication Solution – TCS File Authentication Product provides authentication, non-repudiation and integrity to all kinds of electronic documents using digital certificates. It provides assurance over/regarding the source, privacy, and validity of electronic documents, and the data contained within.
•
TCS Code Generator Framework – TCS Code Generator Framework provides an integrated environment along a product or application development life-cycle. By significant re-use of codes, it speeds up new application development, legacy system integration, or making enhancements. Development teams spread across geographies benefit from increased consistency and communication with common code repositories and well-defined processes TCS Multimedia Authoring Solution – TCS Multimedia Authoring Tool helps organizations create their content modules easily and quickly. With its ability to support graphics, audio, and video media formats, users can make learning a rich and engaging experience for their audience. Its simple interfaces do not require any specialized programming skill or knowledge to operate. Being compliant with SCORM standards, TCS eVOLv can be easily deployed on most learning management systems TCS Form Authentication Solution – TCS Form Authentication Solution enables webbased transactions to be digitally signed and authenticated, ensuring data accuracy, security, and privacy TCS Time Stamping Solution – TCS Time Stamping Product provides time stamping or digital notarization to electronic transactions and documents. Using tamper-proof cryptographic technologies to certify electronic transactions, TCS Saakshi assures the execution of transactions by providing time stamp tokens that indicate the date and time of execution
•
•
•
4). By Industry Products – • TCS Clinical Trial Management Solution – TCS Clin-e2e is a Clinical Trial Management Solution that addresses all four phases of clinical trials. It provides a secure online environment for electronic data capture and integrates sites and labs with sponsors. Pharmaceutical companies are able to create customized Case Report Forms (CRF) and investigate clinical data more effectively. With TCS Clin-e2e, pharmaceutical companies can successfully monitor progress of global trial sites, reduce time and cost of clinical trials and ensure regulatory compliance with global frameworks TCS Energy Billing System (EBS) – TCS' Energy Billing System automates and manages the Meter-to-Cash process of a power utility company. It covers Consumer Management, Meter Management, Application Processing, Connection, Tariff Management, Bill Generation, Conflict Management, Document Tracking, Payment etc. The solution takes care of applications for new connections, load enhancement/reduction, name and address changes etc. It maintains meter attributes and keeps provisions for interfacing with Meter Reading Instrument (MRI). It uploads meter readings from Automatic Meter Reading (AMR) devices for commercial and industrial consumers. The solution also deals with grievance handling and complaints from the consumers
•
Tata Consultancy Services Limited (TCS)
• TCS Hospital Management Solution – TCS Hospital Management Solution helps large and medium-sized hospitals streamline patient care, hospital administration, ancillary services and clinical support activities. With TCS Hospital Management Solution, healthcare providers can be assured of better administration and control, enhanced fund management, better reporting to aid strategic decision making and improved patient care and satisfaction TCS Energy Accounting System (EAS) – TCS’ Energy Accounting System (EAS) adopts statistical processes to find out the energy consumption trends. It maps the physical network (e.g. sub division, division, circle offices etc.) to facilitate substation wise, transformer wise or feeder wise loss calculation. The solution calculates the efficiency of different distribution transformers (DTR), feeders and substations at regular intervals, providing energy accounting data and reports at various administrative and functional levels TCS Enterprise Integration and Control Environment Solution – TCS Enterprise Integration and Control Solution for Energy and Utilities companies helps integrate enterprise functions like materials management, energy billing, energy accounting, operations and maintenance, finance and HR. Energy and Utilities enterprises are able to increase responsiveness through enterprise-wide visibility, automate billing and settlement processes, improve asset utilization and build profitable customer relationships TCS Fuel Management System (FMS) – For any energy and utilities company, forecasting, benchmarking and operational activities pertaining to estimation of fuel requirements, selection of fuel supplier, quality check, optimal fuel mix blending, transportation from source to plant and calculation of fuel efficiency are critical. FMS adopts a formula-based approach to calculate the fuel estimate for a particular unit of the plant within a date range. The solution uses parameters like quality analysis of the supplier stock and pilferage reports of the transporter based on previous contracts to help in fuel supplier/transporter selection. The solution possesses an LPP-based coal mixing tool which predicts an optimum mix of coal of various grades. The solution captures all fuel logistics and transportation business processes. The solution manages stringent quality check processes on the procured coal stock from vendors as well
•
•
•
5). TCS BaNCS – Products and Solutions for Banking, Insurance and Capital Markets. TCS BaNCS Banking, with solutions in core banking, payments and regulatory compliance, already meets the needs of a diverse range of organizations including profitable micro-lending organizations, eurozone powerhouses, and the operators of two of the largest branch networks in the world TCS BaNCS Insurance solutions include line-of-business products for property and casualty, workers’ compensation, extended warranty, individual life, group life and reinsurance. Also, TCS BaNCS Insurance offers the Product Workbench, a solution that supports the rapid deployment of new insurance products; and the Agent's Workbench, for lead generation and customer relationship management. The TCS BaNCS suite of solutions helps both buy-side and sell side firms to implement robust, error-proof, STP-enabled and highly-scalable processes for Securities Trading, Trade Processing, Clearing and Settlement, Custody, Portfolio Accounting and Corporate Actions administration. TCS BaNCS Capital Markets solutions are based on modern technologies which
Tata Consultancy Services Limited (TCS)
integrate easily into existing infrastructures in a SOA framework, supporting straight-throughprocessing (STP) initiatives and market connectivity standards
Clients in UK Private Sector – Aviva, Balfour Beatty, Barclays, Boots, BP, British Airways, British Telecom, Cadbury Schweppes, Dunlop Aerospace, Forth Ports, Ingersoll-Rand International, Morgan Stanley, Motorola, Mowlem, National Grid, Ordnance Survey, Prudential, Somerfield Stores, Standard Life,Thomas Cook, United Utilities Public Sector – Fujitsu Alliance, UK's Department of Work and Pensions under Unity American Clients – American Express, AIG, Boeing, Citibank, Dell Computer Corporation, The Gap, General Electric, Hewlett-Packard, Kellogg's, Lucent Technologies, Nike, The State of Pennsylvania, The State of Montana, Prudential Financial, Qwest ,Target Corporation, Agilent Technologies, Eli Lilly, Halliburton, CVS Pharmacy Other Major Clients – ABN Amro, Deutsche Bank, Nortel Networks, Nielsen Financials: Highlights for Quarter Ended September, 2007 • EPS at Rs 12.79 in Q2 • 51 new clients added in Q2 • 12,523 employees joined the company in Q2 • Attrition steady at 11.5% LTM (including BPO) • Quarterly dividend of Rs 3 per share • Q2 Revenues at Rs 5,640 cr ($ 1.42b); up 25.4% Y-o-Y, • Q-o-Q Revenues: Up 8.4% in Re terms; up 10.8% in $ terms • Q2 Net Profit at Rs 1,252 cr ($ 314m) up 22.8% Y-on-Y • Q-o-Q Net Profits: Up 4.1% in Re terms; up 6.3% in $ terms • Full Services Play: Over 50% of Q2 revenues from new services • First India-based IT firm to cross landmark of 100,000 employees • TCS amongst Forbes Asia’s FAB 50, best traded companies in Asian market • Market Capitalization close to $ 28 billion H1 Revenues at Rs 10,843 cr ($2.7b) up 25.3% Y-o-YH1 Net Profit at Rs 2,455 cr ($ 610m) up 29% Y-o-Y Stock Information as on Sunday, October 19, 2007 • Price 1,106.75 • • Day High 1,151.00 Bid 0.00 Day Low 1,080.10 Offer 0.00
Tata Consultancy Services Limited (TCS)
• • • 52 Week High 1,399.00 Change On Day -12.10 52 Week Low 978.00 Daily Volume 607,426
Source of revenue: • TCS’ Banking, Financial Services & Insurance customers contributed 42% of TCS Global Revenues in FY07 ,Up from 38.5% in FY05, YoY growth of 44% in FY 2007
• Building solid traction outside ADM. For the first time, contribution from mainstream application development and maintenance stood at less than 50% of overall revenues. This emphasizes a growing shift towards high-value and faster-growth services such as infrastructure management (31.2% growth Q-o-Q), assurance or testing (24.8% growth Q-o-Q), BPO (13.9% growth Q-o-Q), consulting (19.2% growth Qo-Q), and enterprise solutions (11.9% growth Q-o-Q). On an organic basis, the company has built the largest practice in the fast growing remote infrastructure management among Indian vendors.
• BFSI momentum and commentary allay concerns over potential impact of difficulties in the US. The BFSI vertical grew ~9% Q-o-Q. Notably, this vertical was characterized by robust double digit sequential offshore growth. The company has indicated that it witnesses healthy deal flow in this vertical from both Europe (mainly, the UK) and the US. Notably, convergent commentary from TCS’ peer Infosys, with regards to the BFSI market in the US, allays concerns that top-tier Indian companies are beginning to see the impact of the sub-prime difficulties in the US.
• TCS BaNCS Poduct (Banking and Financial Market) Revenue Rs. 4184 Million, 2% of total revenue TCS Strategy
Tata Consultancy Services Limited (TCS)
1. TCS is building a solid traction outside Application Development and Maintenance. There is a growing shift towards Infrastructure Management, testing, BPO, consulting and enterprise solutions. 2. Less dependence on US (dropped to 50%), more clients from Europe. 3. Client traction in the mid-range bracket has picked up. ($20-50 Million) 4. Focus on near-shoring strategy with centers in Argentina, Brazil, Chile and Uruguay.
TCS Competitor (Infosys): TCS is an integrated service provider and has started investing in its consultancy division with target revenue of $650 million by 2009. Looking at the competitive service offerings and revenues, Infosys is the nearest competitor of TCS. Infosys revenues are just shy of around billion dollars compared to TCS. An Infosys product like Finacle is growing in popularity and is giving heads on competition to TCS BaNCS core banking solution. Similar to TCS, Infosys has also their consulting division targeted to provide consultancy to current customer base and new clients. In the last fiscal year TCS and MBT are the only two companies to crack a billion dollar projects.
Q1FY07 Application Development & Maintenance Business Intelligence Engineering & Industrial Service Infrastructure Services Enterprise Solutions Global Consulting Asset Leverage Solution Assurance Services Business Process Outsourcing 21,550 3,606 2,569 2,818 5,388 1,326 1,078 746 2,362
Q1FY08 26,794 4,995 2,757 2,966 6,451 1,561 1,717 1,717 3,070
CQGR 6 8 2 1 5 4 12 23 7
Whereas, Infosys is still in search of cracking big deals to increase its top line and customer base. BFSI and Insurance practice is the major revenue source at TCS and Infosys both. It depends on how the companies innovate and holistically market there products and services to reach to global clients. Infosys Revenue (2006-07) : Rs 13149 cr Profit : Rs 3777 cr Share price (as on 19 oct) : Rs 1908
Infosys is opening centers in US near shore (like Brazil, Canada) areas and planning to
compete with TCS with commercial licensing of its products already patented or under patent process.
Tata Consultancy Services Limited (TCS)
Application services and development still the largest revenue stream for both Infosys and TCS.
