Project Report
An analysis of the top Three India-based
Information Technology (IT) services providers
Presented By:-
Prashant Dixit
Roll No.12D255
M.B.A.-I
2.0 Objectives of the Study
3.0 Literature Review
4.0 Research Methodology
5.0 Scope of Study
6.0 Findings
7.0 Conclusion
8.0 References
9.0 Bibliography
CONTENT
1. Introduction
1.10 Information Technology
1.11 The Information Technology Industry:
An Indian Scenario
1.20 Overview of the top three India-based
IT services providers:
1.21 TCS
1.22 Infosys
1.23 Cognizant
INTRODUCTION
Information Technology - Two words that describe a revolution in
not just the global economies of today, but a generational shift in
human perception of and correlation to technology.
According to [Link] Information technology (IT) may be
defined as the technology which is used to acquire, store, organize
and process data to a form which can be used in specified
applications and disseminate the processed data.
Information Technology Association of America (ITAA) defines
Information technology (IT) as "the study, design, development,
implementation, support or management of computer-
based information systems, particularly software applications and
computer hardware.
1.11 The Information Technology Industry: An Indian Scenario
The Information technology industry in India has gained a brand
identity as a knowledge economy due to its IT and ITES sector. The
IT & ITES industry has two major components: IT Services and
business process outsourcing (BPO). The growth in the service sector
in India has been led by the ITITES sector,
Contribution to GDP: The sector has increased its contribution to
India's GDP from 1.2% in FY1998 to 7.5% in FY2012.
Revenue:-According to NASSCOM, IT sector in India
aggregated revenues of US$100 billion in FY2012.
Major cities of Trading-Indian IT
industry
Bangalore
Chennai
Delhi
Mumbai
Hyderabad
Pune
Kolkata
Industrys share of total Indian exports:
Increased less than 4% in FY1998 to about 25% in FY2012.
Employment Generation:
Expected to add 230,000 jobs in FY2012, thus providing direct
employment to about 2.8 million, and indirectly employing 8.9
million people.
Establishment:
India's IT Services industry was born in Mumbai in 1967 with the
establishment of Tata Group.
1.20 OVERVIEW OF THE TOP THREE INDIA-
BASED IT SERVICES PROVIDERS
1.21 Tata Consultancy Services (TCS):
Establishment- Tata Consultancy Services (TCS) is a part of
Indias largest and oldest conglomerate, The Tata Group.
Established in the year 1968, TCS pioneered the Indian IT
industry.
Services Offered- TCS offers a full menu of technology and business
services,
including business process outsourcing (BPO),
enterprise systems installation,
network management,
and systems integration
the company specializes in developing and maintaining customized
software for business.
TCS at Glance
Top management:
R N Tata (Chairman)
S Ramadorai (Vice
Chairman)
N Chandrasekaran (CEO &
Managing Director)
Number of employees 2,38,583(Mar2012)
Revenue 48,894crore(Mar2012)
Operating Profit 13,517crore(Mar2012)
Net Profit 10,413crore(Mar2012)
Source: TCS Annual Report 2012
1.22 Infosys Limited
Establishment- Infosys Limited formerly Infosys
Technologies Limited is a second largest Indian provider of
business consulting, technology, engineering and
outsourcing services established in the year 1981.
Services Offered- The various services provided by Infosys
are Managemnet Consulting Services, Business Application
Services, Business IT Services, BPO Services, Cloud and
Mobility Services.
Infosys at Glance
Top management:
K V Karnath(Chairman of the board)
S Gopalakrishnan (Executive co-chairman of the
board)
S D Shibulal (CEO & Managing Director)
Number of employees 1,51,151(Mar2012)
Revenue 35,638crore(Mar2012)
Operating Profit 10,061crore(Mar2012)
Net Profit 11,096crore(Mar2012)
Source: Infosys Annual Report 2012
1.23 Cognizant Technology Corporation
Establishment- Cognizant Technology Corporation
was founded in 1994 with the main objective of offering
competitive solutions to complex software development
and maintenance issues.
Services Offered-Portals and Content Management
Solutions, SAP, ERP Implementation and support,
Clinical application support, Implementation and
support of enterprise data warehouse, business
intelligence and corporate performance-management
solutions.
Cognizant at glance
Top management:
John E. Klein(Chairman of the board)
Lakshmi Narayanan (Vice-chairman of the
board )
Francisco Dsouza(CEO & Managing
Director)
Number of employees 1,37,700(Dec2011)
Revenue $6,121,156(Dec2011) = Rs. 31,654 crore
Operating Profit $2,191,880(Dec2011) = Rs. 11,334 crore
Net Profit $1,136,468(Dec2011) = Rs. 5,877 crore
Source: Cognizant Annual Report 2011.
TCS, 238583
Infosys, 151151 Cognizant,
137700
0
50000
100000
150000
200000
250000
300000
No. of employees of selected IT companies(2012)
A B
C
A B
C
2- Objectives of the Study
1. To provide an overview of IT industry as a
whole.
2. To provide an overview of selected top three India-
based IT services providers.
3. To apply Porters Five Forces of Competition
framework on selected company.
3- Literature Review:
The top three India-based IT services providers are TCS,
Infosys, and Cognizant.
The annual reports and other secondary data of companies
illustrate useful literature for reviewing.
The five-force model of competition was first introduced by
Porter in 1980 in his book on Competitive Strategy
Source: Gartner, Inc. ( the world's leading information technology research and
advisory company) (April 2012).
[Link]
4- Research Methodology
Data-collection:- is mainly based on secondary sources
like Internet, Magazines, Journals, and Books.
Sample Size:-The study covers the top three India-
based IT services providers.
Porters Five Forces Analysis:- Besides this, Porters
Five Forces of Competition framework is adopted for
analysis of the top three India-based IT services
providers, keeping in mind the basic purpose of study.
4.1 Research Objectives:
1. To gather relevant information on IT Industry from
secondary data sources.
2. To gather information on selected top three India-based
IT services providers from secondary data sources.
3. To collect relevant information from secondary data
sources like Internet, Magazines, Journals, and Books.
4. Application of Porters five forces model on selected top
three India-based IT services providers
5- Scope of Study
This report covers overview of IT industry as a
whole.
This study focuses; particularly on India-based top
three players TCS, Infosys and Cognizant in the IT
industry.
This study also attempts to present an analysis of top
three India-based IT services providers TCS, Infosys
and Cognizant based on Porters Five Forces Model.
PORTERS FIVE FORCES MODEL
(INDIAN IT INDUSTRY)
1. Supplier Power
Shift from high to low
2. Buyer Power
Very High
3. Competitive Rivalry
High
4. Threat of Substitutes
Medium
5. Threat of New Entry
Low
PORTERS FIVE FORCES MODEL
(TCS)
Supplier Power:
Moderate
Buyer Power:
Very High
Competitive Rivalry:
High
Threat of Substitutes:
Low
Threat of New Entry
Low
PORTERS FIVE FORCES MODEL
(INFOSYS)
Supplier Power
High
Buyer Power
Very High
Competitive Rivalry
High
Threat of Substitutes
Moderate
Threat of New Entry
Low
PORTERS FIVE FORCES MODEL
(COGNIZANT)
Supplier Power
High
Buyer Power
Very High
Competitive Rivalry
High
Threat of Substitutes
Moderate
Threat of New Entry
Low
6.0 FINDINGS (INDIAN IT INDUSTRY )
1. This study reveals that IT industry continues to be a net employment
generator - expected to add 230,000 jobs in FY2012, thus providing
direct employment to about 2.8 million, and indirectly employing
8.9 million people.
2. IT sector has increased its contribution to India's GDP from 1.2%
in FY1998 to 7.5% in FY2012.
3. IT Exports accounted for 35% of the total exports with potential for
5 million jobs in IT by 2012.
6.0 FINDINGS (INDIAN IT INDUSTRY)
4. The industrys share of total Indian exports
(merchandise plus services) increased from less than
4% in FY1998 to about 25% in FY2012.
5. IT industry attracted Foreign Direct Investment (FDI) of
U.S. $ 4-5 billion.
6. ITBPO sector in India aggregated revenues of US$100
billion in
FY2012.
6.0 FINDINGS (TCS)
Tata Consultancy Services (TCS) is a part of Indias largest and oldest
conglomerate, TCS pioneering the Indian IT industry with manpower of
2,38,583 (Mar2012), Revenue of 48,894crore(Mar2012), Operating Profit of
13,517crore(Mar2012) and Net Profit of 10,413crore (Mar2012).
While applying Porter Five Forces Model to TCS it is found
that:
Supplier power is Moderate.
Buyer power is High.
Threat of substitutes is Low.
Competitive rivalry is High.
Threat of new entry is Low
6.0 FINDINGS (INFOSYS)
Infosys Limited formerly Infosys Technologies Limited is a second largest Indian
provider of business consulting, technology, engineering and outsourcing services
with manpower of 1,51,151(Mar2012),Revenue of 35,638crore(Mar2012), Operating
Profit of 10,061crore (Mar2012) and Net Profit of 11,096crore (Mar2012).
While applying Porter Five Forces Model to Infosys it is found that:
Supplier power is High.
Buyer power is High.
Threat of substitutes is High.
Competitive rivalry is Moderate.
Threat of new entry is Low.
6.0 FINDINGS (COGNIZANT)
Cognizant Technology Corporation is a third largest Indian IT service
provider having manpower of 137,700 (Dec2011), Revenue of 31,654crore
(Dec2011), operating profit of 11,334crore (Dec2011) and Net profit of
5,877crore (Dec2011).
While applying Porter Five Forces Model to Cognizant it is
found that:
Supplier power is High.
Buyer power is High.
Threat of substitutes is High.
Competitive rivalry is Moderate.
Threat of new entry is Low.
7.0 Conclusion-
Information Technology is on going requirement of
every nation.
IT sector provides vast opportunities for Investors,
Entrepreneur, Youth and Countries.
IT industry has continuous growth year by year.
Independent variables of Porters five forces (entry
barriers, supplier bargaining power, buyer bargaining
power, and substitution/industry competitiveness) have
a positive impact on industry attractiveness and varying
situational impact on India-based selected IT
companies ( TCS, Infosys, and cognizant).
8.0 References:
8.10- Internet
Architectural and Transportation Barriers Compliance Board, Federal Register
Vol. 65 No.246-Part II (Dec 21, 2000), Electronic and Information Technology
Accessibility Standards (Section 508)
[Link]
27/news/27608367_1_core-sector-outsourcing-sector-tech-firms
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
S_Annual_Report_2011-[Link]
8.11- Newspapers
1. Economic Times
2. Business Standard
8.12- Magazines
1. Business Week
2. Outlook Money
3. Business Today
4. Red Herring
9.0 Bibliography:
C.R. kotahri. (2004). Reserach methodology methods and techniques.
New delhi: new age international (p) limited, publishers.
D.D. sharma. (2001). Fundamentals of marketing research. New
delhi: sultan chand and sons,new delhi.
V. Rajaraman (2006). Introduction of Information Technology. PHI
Learning Private Limited, New Delhi.
