|Company:||Tata Consultancy Services TCS|
|Headquarter:||Mumbai, Maharashtra, India|
|Type:||Information technology Software Consulting Outsourcing|
|Market Cap (Jan 2022):||$162.20 Billion|
|Annual Revenue (FY2021):||US$26 billion|
|Profit | Net income (FY2021):||US$5.0 billion Net Income|
|Key Competitors:||Accenture, Infosys, Wipro, HCL, Cognizant, Tech Mahindra, Capgemini, DXC Technology, NTT Data|
|Products & Services:||Analytics and Insights Blockchain Cognitive Business Operations Cyber Security Enterprise Applications Quality Engineering Automation & AI Cloud Consulting IoT & Digital Engineering TCS Interactive Sustainability Services PRODUCTS TCS BaNCS™ TCS Connected Intelligence Platform™ ignio™ TCS iON™ TCS MasterCraft™ TCS Optumera™ TAP™ CHROMA™ TCS Customer Intelligence & Insights™ TCS Intelligent Urban Exchange™ Jile™ TCS OmniStore™ Quartz™ – The Smart Ledgers™ PLATFORMS TCS ADD™ TCS BFSI Platforms ERP on Cloud TCS HOBS™|
|Areas Covered Geographically||55 countries – North America, South America, Europe, Middle-east, Africa, South Asia, South East Asia(ASEAN), ANZ, North Asia|
Overview of the company – A part of the Tata group, India’s largest multinational business group, TCS has over 592,000 of the world’s best-trained consultants in 55 countries. It is currently the 67th Largest company by market cap in the world. The company generated consolidated revenues of US $25.7 billion in the fiscal year ended March 31, 2022, and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India.
In FY 2022, the company crossed a milestone of $25 billion in revenues, experiencing strong growth of 15.9%, adding all-time high incremental revenue of $3.5 billion. This growth has come with an industry-leading operating margin of 25.3%. Since the start of the last decade, the company has grown over four times, comfortably outperforming its largest global competitors. TCS had a 17.7% growth in market value to `13,83,427 crore in the past year 2021-22.
SWOT Analysis of Tata Consultancy Services (TCS) 2022
Strengths: SWOT Analysis of Tata Consultancy Services (TCS) 2022
1. A strong order book of $34.6 billion in 2022.
2. Recognition in all global markets as a dominant Technology consulting player
3. Extremely strong capability in ERP Consulting, Cloud Consulting, and Retail transformations.
4. A dominant player in Cloud-native capabilities and digital transformation
5. Large Talent pool to take 1+ billion USD large deals.
6. A diverse talent pool from 153+ Nationalities of the World.
7. 200000 women employees touching almost 40% of the workforce.
8. Has developed 50000 Contextual Masters a community of experts with deep domain and technical expertise, customer business, industry landscape, and futuristic technological development.
9. Selected by Payments Canada, the country’s largest payment organization, to transform its payment system operations and help implement the RealTime Rail (RTR), the new real-time payments system that will allow Canadians to initiate payments and receive irrevocable funds in seconds
10. Became the #2 most valuable brand in the IT services sector globally.
11. Ranked #1 in Customer Satisfaction in the largest survey of European businesses by Whitelane Research, for the ninth consecutive year, covering 1,800 CxOs from top IT spending companies in Europe.
12. Selected by the Government of India to drive the second phase of the pathbreaking Passport Seva
14. Ranked #1 by revenue in the UK Software and IT Services Rankings
15. Increased the number of Large clients of 100+ Million USD to 58.
16. Increased the number of Mid-size clients of 50+ Million USD Revenue to 150
Weaknesses: SWOT Analysis of Tata Consultancy Services (TCS) 2022
1. Not Nimble enough to fight Software-as-a-Service (SaaS) startups and unicorns coming up in niche spaces for IT operations and services.
2. Lags behind the competition when it comes to winning small, medium-size deals in Banking, Telecom, Manufacturing, and analytics space.
3. Aging senior workforce, organizational inertia leads to loss of deals in some cases.
4. Still hasn’t cracked China market strongly compared to Accenture, IBM, and Cognizant.
Opportunities: SWOT Analysis of Tata Consultancy Services (TCS) 2022
1. Long-term investments in futuristic areas of research to address customers’ needs
2. Upcoming contracts in cloud and TCS being recognized as a partner of choice by both Microsoft and Google make it even better positioned to win large deals in cloud consulting, digital transformation, industrial internet, automation, and AI.
3. 5G rollouts in various countries in 2023-2024 will add significant revenue to TCS stables.
4. Early investment in Technologies like cognitive robotics; quantum computing; next-generation communications technologies sensing, digital twins for social systems, efficient and robust AI & deep learning, metagenomics, immersive technologies, sustainability, generative design for materials, Manufacturing & life sciences, and personalized nutrition and medicine will win early deals and help TCS establish a bridgehead in before the competition.
5. TCS has been selected by Takeda, the global biopharmaceutical giant, to be a digital transformation partner.
6. TCS has been selected by Bovemij the Netherlands-based Insurance client for Digital Strategy and Digital mobility services.
7. The government of Israel’s Ministry of Finance has selected TCS as a partner in the key transformation of its banking sector to enable digital-only banks
Threats: SWOT Analysis of Tata Consultancy Services (TCS) 2022
1. The year also witnessed a sharp rise in employee turnover across the industry. TCS’ attrition in IT services (LTM) was 17.4% in FY 2022.
2. Data Laws in countries and unions might disrupt some of the operations.
3. Manpower intensive Technological work which still requires international travel is quite disturbed due to covid. 2rd largest economy china and financial hub Hong Kong are having travel curbs leading to delays in implementation.
4. SaaS model of software will continue to eat revenue and workshare from all traditional IT services and consulting companies.