Internal TCS Infosys, Wipro

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Internal analysis

TCS, Infosys, Wipro

3/11/12

TCS is one of the major providers of information technology service. The company provides a wide range of service including business consulting, information technology, business process outsourcing, infrastructure, and engineering. The company operates in Americas, Europe, Middle East, South Africa and Asia Pacific. The company is headquartered in 3/11/12 Mumbai, India and has around

TCS(Tata Consultancy Service) Company introduction

TCS SWOT analysis


Strengths:

It's highly professionally managed IT consulting and servicescompany under the belt of TATA. Company has performed consistent year on year with weakeconomy conditions of world. Company has capabilities to deliver new as well as legacyapplication. It is 3/11/12

TCS SWOT analysis


Weaknesses:

Lack of scale compared to global competitors like IBM, HP (which bought EDS), and Accenture. Needs to establish a track record when it comes to large deals. Consulting accounts for less than 4 percent of global revenues; IBM, Accenture score on this count.
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Needs to strengthen other service

TCS SWOT analysis


Opportunities:

Threats:
Financial slow down, slowing US economy. Labor challenges, globally. Competition from foreign markets Innovative products/services of competitors Changing technology New competitors entering the market

Change in consumer lifestyles Acquisitions Available Governmental support Available technological innova3/11/12

TCS Key Financial Ratios


2011.2 Dividend Per Share Operating Profit Per Share (Rs) Net Profit Margin(%) Current Ratio Quick Ratio Asset Turnover Ratio Earnings Per Share 14.00 44.82 25.44 2.41 2.40 4.91 38.62 2010.3 20.00 34.06 24.13 1.49 1.48 4.74 28.62 2009.3 14.00 61.52 20.74 1.83 1.83 5.15 47.92 2008.3 14.00 51.35 24.11 1.98 1.97 5.74 46.07 2007.3 11.50 43.95 25.00 1.93 1.98 6.49 38.39

Source: www.moneycontrol.com

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Infosys Company introduction

Infosys Limited formally Infosys Technologies is a global technology services company headquartered in Bangalore, India. Infosys have offices in 29 countries and development centers in India, US, China, Australia, UK, Canada, Japan and many other countries. It has over 145,088 employees of 85 3/11/12 nationalities.

Infosys Technologies SWOT


Strengths:

Weaknesses:
Excessive dependence on US for revenues 67% of revenues from USA Excessive dependence on BFSI sector for revenues 36% of revenues from BFSI Weak player in domestic market. Only 1%of revenues from India low as compared to peers Low R&D spending as compared to global IT companies only 1.3% of total revenues Rising wage bill 42.9% to 44.8% of revenues Low expertise in high end service like Consultancy.

Leadership in sophisticated solutions that enable clients to optimize the efficiency of their business

Proven Global http://www.scribd.com/doc/14226359/Infosys-strategic-analysis - recomman3/11/12 dation delivery mod-

Infosys Technologies SWOT


Opportunities:

Threats:
The economic environment, pricing pressure and rising wages in India and overseas Intense competition in the market for technology services could affect cost advantages. High dependency on a small number of clients, and the loss of any one of the major clients could significantly impact business. Failure to complete fixed-price, fixedtime frame contracts within budget and on time Currency fluctuations Termination of Client contracts can typically be terminated without cause and with little of no notice or penalty.

Domestic market set to grow by 20%. Expanding into new geographies Europe, Middle East, etc
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Infosys is cash

Infosys Key Financial Ratios


2011.2 Dividend Per Share Operating Profit Per Share (Rs) Net Profit Margin(%) Current Ratio Quick Ratio 60.00 146.56 24.31 5.11 5.02 2010.3 25.00 128.30 26.36 4.28 4.20 3.33 101.13 2009.3 23.50 120.59 27.52 4.71 4.67 3.39 101.58 2008.3 33.25 86.78 27.37 3.30 3.28 3.47 78.15 2007.3 11.50 73.98 28.05 4.96 4.91 3.38 66.23

Asset Turnover Ratio 3.67 Earnings Per Share 112.22

Source: www.moneycontrol.com

3/11/12

Wipro Company introduction

Wipro Ltd. is the flagship company of the Azim H Premji group. Wipro was incorporated in the year 1945. The company started off originally as a manufacturer of vegetable ghee/vanaspati (hydrogenated vegetable oils), refined edible oils etc. Gradually, It diversified into various other businesses. The group forayed into information technology business 3/11/12 in 1982.

Wipro SWOT analysis

Stren gths:

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Weaknesses:

Global R&D

Low operating margin of the other group companies. Free floating stock is very less. Domestic market was huge but was underdeveloped Small player in global market Limited domain Clients not trusting the capabilities of In-

Wipro SWOT analysis


Opportunities:

In the branded product category. In the consultancy area. In the emerging technology areas like Blue 3/11/12 Tooth, WAP etc.

Threa ts:

Increasing cost

Wipro Key Financial Ratios


2011.2 Dividend Per Share Operating Profit Per Share (Rs) Net Profit Margin(%) Current Ratio Quick Ratio Asset Turnover Ratio Earnings Per Share 4.00 23.47 17.96 1.45 2.20 3.45 17.74 2010.3 6.00 37.47 20.97 1.33 2.26 3.47 33.36 2009.3 4.00 32.48 13.53 1/10 1.76 3.85 20.30 2008.3 6.00 25.42 17.19 2.54 2.44 7.81 20.96 2007.3 6.00 22.31 20.34 1.68 1.61 8.31 19.48

Source: www.moneycontrol.com

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