Software Industry Detail Analysis

Indian IT/ITeS Industry Overview: Introduction: In an increasingly globalised world, significant complexity and uncertainty is getting attached to the unprecedented economic crisis. The Indian economy has also been impacted by the recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and exponential growth in the domestic market has partially offset this fall and insulated the country, resulting in net overall momentum. The IT-BPO industry in India has today become a growth engine for the economy, contributing substantially to increases in the GDP, urban employment and exports, to achieve the vision of a “young and resilient” India. During the year, the sector maintained its double digit growth rate and was a net hirer. This growth has been fueled by increasing diversification in the geographic base and industry verticals, and adaptation in the service offerings portfolio. While the effects of the economic crisis are expected to linger in the near term future, the Indian IT-BPO industry has displayed resilience and tenacity in countering the unpredictable conditions and reiterating the viability of Indiaĵs fundamental value proposition. Consequently, India has retained its leadership position in the global sourcing market. The Indian IT-BPO industry is estimated to achieve revenues of USD 71.7 billion in FY2009, with the IT software and services industry accounting for USD 60 billion of revenues. During this period, direct employment is expected to reach nearly 2.23 million, an addition of 226,000 employees, while indirect job creation is estimated to touch 8 million. As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 5.8 per cent in FY2009. Software and services exports (including BPO) are expected to account for over 99 per cent of total exports, employing over 1.76 million employees. While the current mood is that of “cautious optimism,” the industry is expected to witness sustainable growth over a two-year horizon, going past its USD 60 billion export target in FY2011. While the industry has significant headroom for growth, competition is increasing, with a number of countries creating enabling business environments aimed at replicating India’s success in the IT-BPO industry. Hence, concentrated efforts are required by all stakeholders to address the current challenges, to ensure that India realizes its potential, and maintains its leadership position. 1

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Govt. of India & IT Sector – Policies & Privileges Policies: Setting up IT software and services operations in India are governed by certain rules and regulations. A brief list of guidelines for individuals/ companies interested in setting up such operations is given below: As an Indian Company A foreign company can commence operations in India through incorporation of a company under the provisions of Co Act. Foreign equity in such Indian companies can be up to 100 percent depending upon the business plan of the foreign investor, prevailing foreign investment policies of the Government and receipt of requisite approvals. An Indian citizen can set up IT software and services operations in India in the following manner: • as an Individual/ Proprietor; or • as a Partnership Firm/ Trust; or • as a Company registered under the Companies Act, 1956 ("Co Act"). No prior permission of Government of India is required to set up IT/ software units in India. Setting up of operations in India by Overseas Company/ Non-Resident A foreign company or a non-resident planning to set up business operations in India can do so in the following manner: • As a foreign company through a Liaison Office/ Representative Office, Project Office or a Branch Office; or • As an Indian company through a Joint Venture or a Wholly Owned Subsidiary.

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• A foreign company is one that has been incorporated outside India and conducts business in India. These companies are required to comply with the provisions of Co Act. Joint Venture with an Indian Partner Foreign companies can set up their operations in India by forming strategic alliances with Indian partners. Foreign investments are approved through two routes as under: Automatic Route: Approvals for foreign equity up to 26 percent, 50 percent, 51 percent, 74 percent and 100 percent are given on an automatic basis subject to fulfillment of prescribed parameters in certain industries as specified by the Government. RBI accords automatic approval to all such cases. Government Approval: Approval in all other cases where the proposed foreign equity exceeds 26 percent, 50 percent, 51 percent or 74 percent in the specified industries or if the industry is not in the specified list, it requires prior specific approval from Foreign Investment Promotion Board ("FIPB").

Privileges: To encourage units in this sector, Government of India has announced many schemes: Export Promotion Capital Goods ("EPCG") Scheme: This scheme allows import of capital goods at a concessional customs duty rate of 5 percent, where the importer as a condition is required to achieve a specified export obligation. The export obligation and the period within which the same is required to be achieved vary based on the nature of the unit and value of imported capital goods. Special Economic Zones ("SEZs"): SEZs are designated areas dedicated towards growth of exports, having full flexibility of operations that are permitted to import duty free capital goods and raw material. The movement of goods to and fro between ports and SEZ are unrestricted. The units in SEZ have to export the entire production subject to permitted sales in the DTA. Currently, there are 11 3

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operational SEZs in India which include the Santacruz Electronic Export Promotion Zone, Kandla Export Promotion Zone, Vizag Export Promotion Zone and Cochin Export Promotion Zones which have been converted to SEZs. Fiscal incentives available to SEZ units have been discussed ahead in detail. The SEZ policy is welcome, very welcome. They need islands of non-interference. The devil is in the details as usual. The centre has formally approved 212 SEZ units with an in principle approval to 152 more. I don’t buy the usual rhetoric that poor farmers will be affected and the like. First of all, large landowners are not necessarily poor. Every day, dozens of large landowners are turning into instant millionaires by turning in their lands to real estate / IT giants. The government must assure prevailing rates to them and/or issue bonds tied to the future development of the area. It must also take into account small and marginal landowners interests and device a new scheme for them which tie them monetarily into future development in that area. The issue must stop there. The SEZs provide a 15 year tax holiday to the IT companies after 2009. The details are 100% exempti0n for the first 5, 50% for the next 5, and variable for another 5 based on reinvestment in SEZs. 100 Percent Export Oriented Unit ("EOU"): In terms of the benefits available, the EOU scheme, on a general basis, is similar to SEZ scheme. But in this scheme, there is no need to be physically located in the designated area (as in the case of SEZs). This scheme offers zero import duty on import of all capital goods, special 10 years income tax rebate (however, such rebate will not be available for Assessment Year 2010-2011 and onwards). The incentives provided to EOUs are generally similar to those provided to SEZ units, except the exemption from central sales tax on purchases. Software Technology Park ("STP"): This is a special scheme under the Ministry of Information Technology, similar to EOU scheme, which is specific for the software industry. STPs are located at Noida, Navi Mumbai, Pune, Gandhinagar, Hyderabad, Bangalore, Chennai, Bhubaneshwar, Jaipur, Mohali and Thiruvanathapuram. This scheme offers zero import duty on import of all capital goods, special 10 years income tax rebate (however, such rebate will not be 4

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available for Assessment Year 2010-2011 and onwards), availability of infrastructure facilities like high-speed data communication links, etc. The incentives provided to EOUs are generally similar to those provided to SEZ units, except the exemption from central sales tax on purchases. STPI (Software Technology Park India) is a scheme that dates back to the early years of the IT industry. It allowed for a 10-year exemption from Corporate Income Tax (upto 90% of turnover), Sales Tax, Customs Duty, Excise duty. Back in the day, the infant IT companies could not deal with the astronomical cost of telecommunications, archaic customs duty rules, and a high rate of taxation. So the initial 10-year tax holiday helped an infant industry attain critical mass. Even though companies like Infosys are 20 years old, they are still able to avail of the 10-year tax holiday by setting up new units with fresh 10-year extensions. For companies outside the STPI, the corporate income tax rate alone is 36-37% (Corporate Income Tax = 35%, Surcharge = 2.5%, Education Tax = 2%). Sales tax exemption is 10-12% for states and 3-4% for Union Territories (UT). This is why you don’t find all IT companies in UTs. The contribution of the STPI tax holiday to the overall success of the IT story cannot be underestimated. It is rated it as one of the best initiatives undertaken by the Indian government. The party it set to end in 2009. If all IT companies come out of the scheme – the Indian government will realize between $3-5 billion dollars (15-25000 cr) in direct taxes alone (this figure is based on projected size of the IT industry at a 36% tax rate on a $50bn size).

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Breakup of the total Global IT spending:

The Global IT spending is expected to decline steeply below the expected levels of $869 billion by 2010.

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Financial Attractiveness of Top 5 Global Services Locations on a scale of 4:

Parameters: 1) Economic Attractiveness 2) IT SEZ requirement 3) Software technology park scheme (STPI) 4) IT Act.

India continues to the leader in terms of “Financial Attractiveness”

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Indian IT Industry Sector: 1) Market Size

More than 80% of revenues come from Exports and only 20% from domestic business.

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Contribution of IT industry to Indian GDP

IT industry contributes to around 5.2% to Indian USD 1 trillion GDP.

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Number of employees in IT Sector (Direct employment)

IT industry provides direct employment to more than 20 lakh people; indirect employment number goes far beyond..!!

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2) Market Share

TCS Infosys

11%

Wipro

10%

8%

Tech Mahindra & Mahindra Satyam HCL Technologies

55% 6% 4% 3%

Financial Technologies IBM India Capgemini India

1%

2%

Others

Indian IT market is dominated by a few large companies with presence of a number of small and medium companies.

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Sources of Revenue:

IT industry is largely dependent on Banking and financial industry. With the decline in these sectors, the revenue from these is expected to decline, hurting the bottom line of IT majors. This calls for exploring new verticals.

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Revenue By Geography

The Americas and Europe continue to be the key markets for the Indian IT-ITeS sector.

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R&D Spending of IT majors:

As compared to International IT giants, Infosys and other Indian companies are lack in R&D spending.

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ESTABLISHED IT/ITeS HUBS in INDIA

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Budget 2009 & its Impact on the IT industry The Union budget presented gives a long term direction to inclusive growth, Infrastructure development, Education and employment generation of 12 Million jobs a year. In terms of the Impact on the IT industry, steps like the scrapping of the FBT, extension of the 10A benefits till 2011, increase in the MAT credit period to 10 years and increased allocation to education are welcome steps. However, steps like the increase in MAT from 10 to 15% are going to have an adverse impact on the Industry in the short run and this is something we could have avoided. On the personal taxation, while the increases in tax limits are nominal, the removal of surcharge on income tax will benefit number of employees in our industry. The Industry also welcomes the planned outlay of Rs. 2100 crores to create ‘Educational infrastructure’ including setting up IIT’s and interest waivers for educating students. These reforms will clearly bring in a manifold resource increase for employability in the technical stream.

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PEST ANALYSIS: Political: • Political stability: Indian political structure is considered Stable enough expect the fact that there is a fear of hung Parliament (no clear majority). - Positive • U.S. government has declared that U.S companies that Political outsource IT work to other locations other than • U.S. will not get tax benefit. - Negative • Government owned companies and PSUs have decided t o Give more IT projects to Indian IT companies. - Positive • Terrorist attack or war. – Negative

Economical: • Global IT spending (demand). (–ve) • Domestic IT Spending (Demand): Domestic Market grow by 20% & reach approx USD 20 billion in 2008-09 Nasscom (+VE). • Currency Fluctuation (-ve) • Real Estate Prices: Decline in real estate prices has resulted reducing the rental expenditure (+ve). • Attrition: Due to recession, the layoffs and job-cuts have resulted in low attrition rate (+ve). • Economic attractiveness: Due to cost advantage and other factors (+ve)

Social: • Language Spoken: English is widely spoken language in India. English medium is the most accepted medium of education.(+ve) • Education: Large number of technical institutes and universities over the countries provide IT education. (+ve) • Working age population. (+ve)

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Technological: • Telephony (+ve) o India has the world lowest call rates o Expected to have total subscribers base of about 500 million by 2010. o India has the second largest telephone network after china. o Enterprise telephone services, 3G, Wi-max, VPN, poised to grow. • Internet Backbone: Due to IT revolution in 90’s india is well connected with undersea optical cables. (+ve) New IT Technologies: Technologies like SOA, web 2.0, High definition content, grid computing, and innovation in low cost technologies is presenting new challenges & opportunities for Indian IT industry.(+ve)

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STP Of IT Industry Segmentation Market segmentation is a process that segments a market into smaller submarkets, called segments. Segments are to be homogeneous or have similar attributes. Purchasing patterns and trends can appear prominently in certain segments. Good market segmentation is to create segments where prominent patterns can emerge. Market segmentation may be used to analyze the followings; •

•

Market responsiveness analysis: This is very useful in direct marketing since market responsiveness of product offerings can be readily available. Market Trend Analysis: Analyzing segment-by-segment changes of sales revenues can reveal market trends. Trending information is vital in preparing for ever-changing markets.

Segmentation offers deals with a specific function within the enterprise such as data processing, accounting, human resources, plant maintenance, engineering design, manufacturing, inventory control, etc. This is the most likely domain for a product or service, but you must recognize that the other domains may also get involved if the purchase of the product or service becomes a high profile decision. This purchase decision will be made by the prospect's functional management. Targeting The dynamics of IT industry is changing and IT firms are now preparing themselves to meet new challenges. Traditionally, Indian IT firms have been deriving sales from the Americas and Europe but going forward, the CAGRs of these regions will be low where as the Asian market is expected to grow at a very fast pace and approach the market size of the European markets by 2011. The emerging Latin American and Middle-East/African markets, though smaller in size, are also expected to have a higher CAGR. The growth in the Asia-Pacific Region is expected to be higher mainly on account of growth in spends in China and India

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Positioning India has firmed up its position in the global software industry and global software biggies too are setting up huge R&D facilities in the country. However, India still accounts for only about 2.5% of the global IT services market, according to Nasscom. But we have a strategic planning assumption that states India’s IT services could grow to $50 billion in 2008 from $18-19 billion currently. In offshore IT services, India has 85% share and so would by far be no.1. This is good considering that the feat has been achieved in a span of less than two years. Over the years, Indian IT service companies have established themselves firmly on the global stage. More than two-thirds of Fortune 500 firms turn to them for part of their IT and business process outsourcing needs. Some, such as Tata Consultancy Services (TCS), Infosys Technologies and Wipro Technologies, have become global brands, competing head-to-head with multinational IT service providers.

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8P’s of IT Industry 1. Product:

The product aspects of marketing deal with the specifications of the services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. 2. People: For service marketers, the core of the service element is the interaction between those providing services and the customer, which is known as service encounter. To achieve customer satisfaction appropriate processes are designed to ensure that the service encounter meets customer expectations. To deliver the satisfactory services, the employees of a company have to play an important role. Employees must possess personal qualities, ability to understand and satisfy customer needs, flexibility, skills and knowledge. Friendly and warm employees increase customer loyalty. 3. Place: In service place refers to location and use of distribution channels. It is referring to the channel by which a service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales. 4. Process In Service Industry Process refers to how a service is provided and delivered to the customer. IT relies on processes to consistently deliver high quality solutions while executing a growing number of engagements from multiple locations. Values, vision and policies form the first level of our three-tiered process 21

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architecture. They are implemented through process execution at the next level. These processes are defined with clear ownership using the ETVX (Entry, Task, Verification, and Exit) paradigm and clearly defined roles and responsibilities. 5. Physical Evidence The environment in which the service is delivered and where the firm and the customers interact; and any tangible commodities that facilitate performance or communicate the service. Physical evidence enhances customer’s perception of quality. The general elements of physical evidence include (Organization Physical Facility): • Exterior facilities o Exterior design o Signage o Parking o Landscape o Surrounding environment • Interior Facilities o Interior design o Equipment o Layout • Other tangibles o Business cards o Stationery o Billing statements o Reports o Employee dress/uniform o Brochures

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6. Productivity Productivity refers to the success or failure of any business, so the quality of the product should be very good for his companies have different quality standards which are certified by the quality department and are approved all over the world. If one does not have approved quality standards then he develops its own to meet the quality that are demanded by the customers 7. Price Software pricing strategy is price planning for a software firm takes into view factors such as overall marketing objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends. When a firm launches a product, the pricing decision is one of the most critical decisions. Software pricing has been concentrated the internal business objectives of vendors such as costs, specified margins, and the competition. On the marketing point of view, the goal of pricing strategy is to set a price that is the pecuniary equivalent of the value perceived by the customer in the product in order to meet the profit and achieve investment goals. 8. Promotion Over here, services and project consulting is through contract or agreement between the parties and promotions are carried out only for the particular client selected as upgrading and extended service for a particular period, etc. : This includes advertising, sales promotion, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company.

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Porter’s 5 Force Model:

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Brief About Top IT Companies Wipro Technologies Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of our clients. Wipro has 55+ ‘Centers of Excellence’ that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award. “Innovation is Wipro - Wipro is Innovation” is our statement of purpose. The challenge this pursuit presents to us every day is – how does one make Innovation “Purposeful”, “ingrained” and “Deliberate” in our organization. We recognize and nurture “innovative solutions” as part of our Wipro values. We prioritize focus and resources guided by this value. The Wipro way of Innovation is really about this deliberate sustained innovation. Our purpose of Innovation is to create higher value for our customers. This continuous thought led us to foresee the benefit of partnering with technology companies to bring value to our customers. Combining these relationships with our strong R&D talent led to the idea of “Lab on Hire” and subsequently to offshore development centers which made offshore outsourcing truly mainstream. Pushing this idea a little further helped us conceptualize the remote infrastructure service model, branded as global command center or GCC to manage the customer’s IT infrastructure. Today, we serve our customers with a wide spectrum of services fuelled by the power of innovation. Products define the identity of technology companies, and the current business environment is looking to adopt innovative ways to turn ideas into real products quickly. In addition, the complexities in technology and the advancement in chip technology have created increasing dis-aggregation in the industry. Wipro is the largest independent provider of R&D services in the world. Using “Extended Engineering” model for leveraging R&D investment and accessing new knowledge and experience across the globe, people and technical infrastructure, Wipro enables firms to introduce new products rapidly. 25

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Wipro’s complete range of IT Services addresses the needs of both technology and business requirements to help organizations leverage leading-edge technologies for business improvement.Wipro takes charge of the IT needs of the entire enterprise. The gamut of services extends from Enterprise Application Services (CRM, ERP, e-Procurement and SCM), to e-Business solutions. Wipro’s enterprise solutions have served and continue to serve clients from a range of industries including Energy and Utilities, Finance, Telecom, and Media and Entertainment.

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Tech Mahindra & Mahindra Satyam Tech Mahindra is a global systems integrator and business transformation consulting firm focused on the communications industry. With the convergence of media and telecom, the changing landscape of the telecom industry is becoming extremely competitive. As companies rapidly strive to gain a competitive advantage, Tech Mahindra helps companies innovate and transform by leveraging its unique insights, differentiated services and flexible partnering models. This has helped our customers reduce operating costs and generate new revenue streams. Recognizing that margins from connectivity are rapidly falling and that future growth in revenues and margins will only come from new applications, content and services, operators today are busy addressing business opportunities revolving around Commerce, Content, Convergence and Customer Experience to gain a sustainable Competitive Advantage. For over two decades, Tech Mahindra has been the chosen transformation partner for wireline, wireless and broadband operators in Europe, Asia-Pacific and North America. Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India, in partnership with British Telecommunications plc (BT), world’s leading communications service provider, Tech Mahindra has grown rapidly to become the 6th largest software exporter in India (NASSCOM 2007) and the second largest telecom software provider from India (Voice & Data 2007).Over 23,000 professionals service clients across the telecom eco-system, from our global network of development centres and sales offices across Americas, Europe, Middle-east, Africa and Asia-Pacific. Committed to quality, Tech Mahindra adds value to client businesses through well-established methodologies, tools and techniques backed by its stringent quality processes. Tech Mahindra is ISO 9001:2000 certified and is assessed at SEICMMI Level 5. Tech Mahindra has also been awarded the ISO 20000-1 (IT Service Management standard) and ISO 27001 (Security Management standard) certification for its development centers across India and UK.Tech Mahindra is certified at PCMM Level 5 for its people-care practices and is the third company in the world to have been appraised for SSE-CMM Level 3.

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Mahindra Satyam (the new brand identity of Satyam Computer Services Ltd. NYSE: SAY), a leading global business and information technology services company, delivers consulting, systems integration, and outsourcing solutions to clients in numerous industries across the globe. Mahindra Satyam leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. The company's professionals excel in engineering and product development, supply chain management, client relationship management, business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities. Mahindra Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve numerous clients, including many Fortune 500 organizations.

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HCL Technologies HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on 'transformational outsourcing', underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 20 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Aerospace & Defense, Telecom, Retail & CPG, Life Sciences & Healthcare, Media & Entertainment, Travel, Transportation & Logistics, Automotive, Government, Energy & Utilities. HCL takes pride in its philosophy of 'Employee First' which empowers our 54,026 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.0 billion (Rs. 9,842 crores), as on 31st March 2009. HCL is a $5 billion leading global Technology and IT Enterprise that comprises two companies listed in India - HCL Technologies & HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups, a pioneer of modern computing, and a global transformational enterprise today. Its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products across a wide range of focused industry verticals. The HCL team comprises over 60,000 professionals of diverse nationalities, who operate from 23 countries including over 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. HCL has created the ability to distribute value across the customer's IT landscape through its well-distributed services portfolio, significant domain strengths, and locally relevant geographic distribution. HCL has the widest service portfolio among Indian IT service providers, with each of its services having attained critical mass. Our five mature lines of business are R&D and Engineering, Custom Applications, Enterprise Applications, IT Infrastructure Management, and BPO Services. In addition, HCL has recently launched its Enterprise Transformation Service offerings comprising of Business, Technology, Application and Data Transformation – the four broad needs of any enterprise. Our ability to 29

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synergistically integrate these service lines across the entire IT landscape creates new zones for value creation. Additionally, HCL has created unique service leadership in each of these areas through best-of-breed unique propositions. HCL’s leadership in these service areas has been recognized by several leading independent analyst. In 2005, HCL started questioning the linearity of scale-driven business models adopted by service providers (largely in the IT application business). The questioning led us to the belief that the market was rapidly approaching a point of inflection, that is a point where the volume and value proportionality would change, opening up new opportunities for service providers who aspire to focus on value. With this realization, HCL embarked on a transformational journey that focuses on value centricity in customer relationships and on leveraging new market opportunities, while creating a unique employee experience. Hence HCL entered a new phase of evolution – transforming it from a volume-driven service provider to value-centric enterprise that turns technology into competitive advantage for all its customers across the globe. Today HCL’s new way of doing business is being recognized by Harvard, IDC, Fortune, Forbes, Economist, Business Week and the likes.

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Patni Computer Systems: Patni Computer Systems Ltd. (Patni) (BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI) is one of the leading global providers of Information Technology services and business solutions. Over 14,500 professionals service clients across diverse industries, from 27 sales offices across the Americas, Europe and Asia-Pacific, and 22 Global Delivery Centers in strategic locations across the world. We have serviced more than 400 FORTUNE 1000 companies, for over two decades. Our vision is to achieve global IT services leadership in providing value-added high quality IT solutions to our clients in selected horizontal and vertical segments, by combining technology skills, domain expertise, process focus and a commitment to long-term client relationships. Patni delivers high quality, reliable and costeffective IT services to customers globally. We provide world-class technology services by constantly exploring and implementing innovative solutions that drive long-term value to our customers. Today, our solutions provide strategic advantage to several most-admired organizations in the world. We have long-standing and vibrant partnerships with over 300 companies across the globe. At Patni, we are focused on optimizing our customers' investments in Information Technology. We help customers envision and shape their future around the key drivers of technology, productivity and cost-effectiveness. Patni's robust methodologies and processes consolidate decades of software development and maintenance experience in delivering and supporting enterprise applications and products. Patni is an ISO 9001:2000 certified organization; assessed enterprise-wide at SEICMMI Level 5 (V1.2), SEI-CMM Level 5 and P-CMM Level 3. We have integrated Six Sigma techniques to focus on continuous, measurable process improvement, with powerful analytical tools and sophisticated review processes.

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Polaris Software Lab Polaris Software Lab Limited is one of India's leading institutions contributing to the knowledge economy of the global financial services marketplace. In a quest for knowledge, spanning over the last 2 decades (11 years as Polaris), Polaris has established its solutions and services footprint globally contributing to the realization of the business vision of some of the world's leading giants in the money vertical. Strong roots - Respectable Pedigree 20 years ago, Citigroup began its quest to pioneer the utilization of the vast human intellect capital in India & the seeds of Polaris were sown. Polaris was fortunate to be one of the first vendors that Citigroup chose to partner with, through this Indian quest. Simultaneously Citigroup also started its own company called COSL (Citibank Overseas Software Ltd) which strategized and operationalized Citigroup's vision of leveraging India. Today, Polaris is an amalgamation of these two organizations that traveled the path of successfully architecting & realizing Citigroup's India led vision. The Labor Pains of a Pioneer The 2 Decade long journey was clearly an experience that helped Polaris participate, witness and experience every pitfall, every hurdle & fallacy in this path to leverage the Indian intellectual capital. The challenges were many. The challenge of creating a successful global sourcing model, the challenge of creating an alternative distributed banking platform, the challenge of creating global competitiveness from a third world economy, the challenge of replicating success from one country to another… The biggest challenge was in being the first one in the world doing all this.

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As Citigroup gained the competitive edge, Polaris gained two very critical experiences: The experience of creating mission critical solutions with leading edge functionality, built on reliable and robust technical architecture which could be successfully implemented and replicated across the globe. This capability is today brought to the customer in the form of a suite of modular solution components under the brand name of intellect Suite. The experience of creating successful outsourcing models which enable global organizations to sustain their competitiveness. This experience has been converted into a predictable and repeatable model of success and is known as the Entity model. While the rest of the Indian market was busy building expertise on COBOL, Java and Lotus, Polaris built expertise on Investment Banking, Retail Banking, Credit Cards, Corporate Banking, Insurance etc.

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Oracle Financial Services Software Ltd Oracle Financial Services Software Ltd (Formerly known as i-flex solutions), majority owned by Oracle®, is a world leader in providing IT solutions to the financial industry. Company is having experience of delivering value-based IT solutions to over 825 financial institutions across 130 countries Oracle is strongly committed to the global financial services industry. To help financial institutions, Oracle has brought together the industry's best application and technology ecosystem for evolutionary transformation, providing customers with the largest footprint of functional assets. Oracle's transformation strategy for financial services industry is executed through the Oracle Financial Services Global Business Unit (FSGBU), and Oracle Financial Services Software is an integral part of the Oracle FSGBU. Oracle Financial Services Software, a majority-owned subsidiary of Oracle, offers a comprehensive suite of offerings encompassing retail, corporate, and investment banking, funds, cash management, trade, treasury, payments, lending, private wealth management, asset management, compliance, enterprise risk and business analytics, among others. With our process-driven approach for serviceoriented architecture (SOA) deployments, we offer banks the combined benefits of interoperability, extensibility, and standardization. We also offer best-of-breed functionality for financial institutions that need to operate flexibly and competitively and respond rapidly to market dynamics in a fiercely challenging business environment. Oracle Financial Services Software has serviced over 880 customers in more than 135 countries through our portfolio of products and services. ORACLE DELIVERS KEY FUNCTIONALITY: • Only multi-channel sales, service, marketing, and transaction solution preintegrated with core banking

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• Only open-standards core banking solution, enabling new products, relationship pricing, and consolidation of existing systems • Most complete end-to-end risk and performance management solution, extending into business operations and anti-money laundering • World's leading financials solution for FSI with muti-GAAP, IFRS, and multibook code processing • Only service-oriented architecture with a banking-specific data model and process library

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Infosys Powered By Intellect Driven By Values

Vision "To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people." Mission "To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large."

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Introduction: Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today, we are a global leader in the "next generation" of IT and consulting with revenues of over US$ 4 billion. Infosys defines designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. Infosys' offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Infosys has a global footprint with over 50 offices and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys has over 103,000 employees. Infosys takes pride in building strategic longterm client relationships. Over 97% of our revenues come from existing customers.

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Analysis of the company: STP Analysis Segmentation Geographical regions: US, India, Australia, China, UK Psychographics: MNC, BFSI, Hospitality Sector Demographic: Population or Employee strength of consumer company: +5000

Targeting Infosys Technologies Ltd, which offers its core banking solution under the brand ‘Finacle’, is targeting regional rural banks to achieve higher growth. There are over 90 rural banks in India & they have come up with a solution called ‘The Finacle Bank in a Box’ for this segment. The expenditure that each rural bank would have to make would depend on its existing level of automation. IT service providers would benefit a great deal if more people from rural areas were included in the banking services, and Infosys has. The solution will be deployed by a third party who will do the banking transaction on behalf of different banks as the model is expected to be cost-effective Infosys BPO is targeting the hospitality industry for it’s outsources processes offering. The company has formed a strategic alliance with New York-based hospitality consultancy major HVS International The alliance will help Infosys BPO (formerly called Progeon) to target hotels and other customers in the hospitality industry. HVS is a well-known consulting firm in the hospitality segment.

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Positioning Infosys is seeking to move away from its image as a cheap Indian offshore service factory to that of a global business technology (BT) leader. The company is investing in measures to enhance its visibility and footprint across a wider group of client stakeholders and markets. The aim is to position Infosys as a prototype for successful companies in a globalized market environment. While Infosys can justifiably point to its ongoing business growth as a major success story, its corporate positioning suffers from inconsistencies in its underlying messaging. Furthermore, its product positioning continues to mainly focus on technology and cost-related benefits, which represents a disconnect with Infosys' corporate ambitions. 8 P’s of Infosys 1) Service Products:

A. Outsourced Application and Infrastructure Services • • • • • • •

Custom Application Development Application Maintenance Application Re-engineering Infrastructure Management Infrastructure Consolidation Independent Testing and Validation Application Portfolio Management

B. Enterprise Services • Packaged Applications § Supply Chain Management (SCM) § Customer Relationship Management (CRM) § Enterprise Application Integration (EAI) § Enterprise Resource Planning (ERP)

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• Systems Integration § Business Intelligence and Data Warehousing § Enterprise Content Management § Enterprise Information Portal § Enterprise Mobility § Enterprise Security § Identity Management § Migration and Re-hosting C. Product R&D Services § § § § § § § §

Product Design & Development Testing & Automation Offshore Product Development Center Additional Product Services Product Consulting & Professional Services Consulting Services Corporate Performance Management Balanced Scorecard

2. People: In service sector people refers to the employees which represent the firm. In IT People are divided into 4 different zones. • • • •

Deep Domain Expertise Customer Proximity Continuous Training Talent Transformation

3. Place: In service place refers to location and use of distribution channels. § § § § 40

USA Canada Australia China Amit C. Parekh

§ § § § § § §

India Japan UAE France Germany UK Italy

4. Process In Service Industry Process refers to how a service is provided and delivered to the customer. IT relies on processes to consistently deliver high quality solutions while executing a growing number of engagements from multiple locations. Values, vision and policies form the first level of our three-tiered process architecture. They are implemented through process execution at the next level. These processes are defined with clear ownership using the ETVX (Entry, Task, Verification, and Exit) paradigm and clearly defined roles and responsibilities. 5. Physical Evidence INFOSYS has corporate office in Mumbai, Chennai, Kolkata, and Bangalore. 6. Productivity Productivity refers to the success or failure of any business, so the quality of the product should be very good for his companies have different quality standards which are certified by the quality department and are approved all over the world. If one does not have approved quality standards then he develops its own to meet the quality that are demanded by the customers We go to great lengths to ensure that the IT services we deliver not only surpass your expectations, but ours too. Quality is a way of life for us, and covers all our processes, interfaces and outputs, in management, core and support process. It is the way we deliver long term excellence, and ultimately, predictability of returns, through the GlobalDeliveryModel(GDM). The quality systems at Infosys match the best in the world. We benchmark ourselves against international quality 41

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standards, like ISO 9000, CMM and recently, the Malcolm Baldrige framework. In addition, we use world-class techniques like the Six Sigma Cross Functional Process Mapping (CFPM) methodologies (from Motorola University) to facilitate process improvement. However, Infosys Quality is more than a mere adherence to these benchmarks, but a proactive quest for process improvement, beyond conventional limits. 7. Price SOFTWARE bellwether Infosys Technologies Ltd sees new pricing models emerging in the fixed price regime, different from the traditional $ per man-hour. Most of the Indian software vendors have increasingly shifted to fixed price projects ever since the global technology spending began to shrink. Within a service line, Infosys manages same level of margins on fixed price and time and material deals and is understood to have a success rate of 70 per cent in fixed price deals, which is higher than industry average. In its recent analyst meet in Pune, Infosys indicated the return of pricing discipline in the market even as prices continued to stay cramped in high-volume deals. The company in its bid to differentiate itself among the vanilla service providers is moving from project-based services to solutions-based approach. Such a strategy entails understanding of the clients' business problems and offer business solutions. In this new model, pricing depends on value offered as against the current cost plus margin approach. The shift has been aided by swelling service offerings like package implementation and enterprise applications to business process outsourcing and contributions from new services increased to 35 per cent in last fiscal compared to 10 per cent in 1998-99. The cost rationalization has also helped the firm retain margins. The company cut entry-level salaries for fresh college graduates; it has rationalized high onsite salaries for fresh onsite deployments and cut on subcontractors. However, Infosys affected a pay hike to its middle level and senior code writers at an average of 13 per cent. In addition, in July, savings of $1.3 million resulting from cost optimization measures were redistributed to employees offshore (performance allowance). The company has increased variability in its cost structure by aligning employee compensation (45 per cent of revenues) to business performance while optimizing costs to increase payout to its offshore employee pool. The variable 42

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compensation for client facing functions has been linked to profitability over and above revenue growth. Increasing utilization rates and greater offshore component is expected to help the company arrest the slide in margins.

8. Promotion Over here, services and project consulting is through contract or agreement between the parties and promotions are carried out only for the particular client selected as upgrading and extended service for a particular period, etc. : This includes advertising, sales promotion, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company.

SWOT Analysis STRENGTHS: • Leadership in sophisticated solutions that enable clients to optimize the efficiency of their business. • Proven “Global delivery model” • Commitment to superior quality and process execution • Strong Brand and Long-Standing Client Relationships • Ability to scale Innovation and leadership.

WEAKNESSES: • Excessive dependence on US for revenues, – 67 % of revenues from USA. • 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. • Low expertise in high end services like Consultancy and KPO.

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OPPORTUNITIES: Domestic market set to grow by 20%. Expanding into new geographies – Europe, Middle East etc. Infosys is cash rich (Around US $ 1 Billion). Acquiring companies to increase expertise in Consultancy, KPO and package implementation capabilities • Opening offices and development centers in cost advantage countries such as those in Latin America and Eastern Europe.

• • • •

THREATS: • Global economic slowdown may continue for several years – hence low IT spending globally. • US Govt. against outsourcing. • Shrinking margins due to rising wage inflation, Rupee-dollar movement affects revenue and hence margins. • Increased competition from foreign firms like Accenture, IBM etc. • Increased competition from low-wage countries like China, Indonesia etc.

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INFOSYS BCG MATRIX

In Infosys Software products adds to 40% of the revenue followed by 30-35% from BPO, KPO and around 25% from ERP & Package Implementation.

Package Implementation What is Package Implementation? A typical ERP solution implementation involves configuring the application to suit the requirements of business processes and creating custom or RICE (Reports, Interfaces, Conversions and Extensions) objects to address gaps in the application. These factors define the 'Solution Size'. Application packages are bundled into various product feature offerings by business areas or modules. These product features are rooted in various common business requirements over various industry verticals through which industry best practices in terms of process flows and granularity of data captured are delivered. Hence, even if the package may carry a lot of functionality, the size of implementation depends on the modules 45

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and functionality that are required by the client. The package sizing methodology needs to consider the functionality required to be implemented in various levels of granularity in terms of Business Decision Layer and Package Support Layer, to determine the Solution Size. Why Package Implementation? Today, ERP is used more to drive business improvements and operational efficiency in an organization and any delays or budget over-runs in implementation projects can impact business. Hence, estimating the effort with reasonable accuracy is crucial to successfully implementing the package. Estimation for such projects poses a major challenge though, due to lack of a well established & scientific framework. Due to the inherent nature of work involved in a package implementation, the otherwise universally accepted size measures such as Function Points or Lines of Code cannot be applied to derive an effort estimate. Moreover, due to the absence of a size measure (such as FP), project performance on productivity and quality reported at project closure stage may not be accurate and comparable across projects. The Infosys Package Points methodology addresses this need.

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Ansoff s Matrix: MARKET PENETRATION STRATEGY Current Markets: USA and Europe Current Products: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: As most large clients in US and Europe are cutting costs, Infosys needs to be more aggressive on cost and quality front. Result of strategy: Unlikely to yield good results.

MARKET DEVELOPMENT STRATEGY New Market: India, Middle-east and Australia Current Product: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: Since these are fast developing IT market, Infosys needs a paradigm shift in focus from US and EU markets to these markets. Result of strategy: Likely to yield good result.

PRODUCT DEVELOPMENT STRATEGY Current Market: USA and Europe New Product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services.

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Recommendation: Concentrate on building expertise in these domains by strategic acquisitions. Result of Strategy: Likely to have good result. (Better the company acquired, the better the result).

DIVERSIFICATION: New Market: India, Middle-east and Australia New product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services. Recommendation: Changing Brand image from low value service provider to high value service provider. Result of Strategy: Difficult to achieve overnight (possible in long term)

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TCS Financial Solutions Vision

To create value by leveraging our co-innovation network in a manner at has an impact on the customer ecosystem.

Mission

To be among the top 3 financial product companies worldwide by 2011; Culture of accountability, delivering certainty to financial services organizations.

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Introduction: At TCS, it means achieving real business results that allow you to transform, and not just maintain, your operations. Our IT services, business solutions, and outsourcing bring you a level of certainty that no other competitor can match. You'll experience requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to your business; and the ability to shift investment to strategic initiatives rather than tactical functions. TCS' Global Network Delivery Mode is the engine that allows us to provide reliable, scalable and cost effective delivery of services and solutions. This timetested model has enabled us to achieve client satisfaction ratings of 89% for meeting quality expectations and an average budget variation on projects of just 3% -- both figures far better than industry norms. TCS' Global Network Delivery Mode enables our clients to: Choose a sourcing strategy best suited to their most important business considerations, e.g., cost optimization, cultural alignment, location proximity, language capabilities or risk-mitigation. Be assured of the highest quality of service delivery regardless of the mix of services, technologies, and locations. Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams -- such as Consulting, IT Services, IT Infrastructure Services, etc. -- through a unified delivery framework. All of TCS' processes and infrastructure have been developed from the ground up -- as opposed to being cobbled together over time. When you become TCS client, here's just a sampling of what TCS do for you: • • • •

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Identify and develop target markets Provide professional oversight for sponsorships, product testing and placement and corporate image maintenance in local markets Plan cost-effect strategies for both internal communication and on the world wide web Develop all of your printed materials, videos and web sites - including Intranet capabilities such as on-line databases, business materials and vendor or third-party communications

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•

• • •

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Prepare community-oriented campaigns to identify a wide range of promotional opportunities for product placement, test marketing or market introduction Coordinate your identity branding to ensure that all materials communicate the same message and appeal Provide effective, attention-getting RFPs (Request for Proposals) and specific contracting with third-party vendors Ensure that you receive our cumulative experience and wide range of networking opportunities to help you grow and succeed.

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Analysis of the company:

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STP Analysis Segmentation Geographical regions: UK, France, India, Germany Psychographics: MNC, BFSI, Manufacturing & Telecom Industry Demographic: Population or Employee strength of consumer company: +3000 Targeting TCS today said it is launching a strategic business unit targeting the small and medium businesses (SMBs), which can generate a turnover of Rs 2,000 crore in the next few years. Through this new unit, TCS wants to provide technological solution for SMBs. TCS will offer IT-as-a-Service in an innovative business model giving SMBs the experience of customized low-cost solutions scalable to their growing business needs. TCS is betting on SMBs because the next stage of growth would come from there in India. SMBs are the most under-served segment. That is where the opportunity lies. And they don't have to worry about the new technologies that keep coming into the market.TCS would be targeting at companies that have a turnover of Rs 100-500 crore. Positioning TCS has also positioned itself as a major player in shaping the B2B/B2C marketplace for automakers, buyers and sellers. The auto industry could drive down the cost of automobiles for the end user while at the same time enabling consumers to buy their own configured vehicle. TCS is providing enabling technology in this area through Customer Experience, Knowledge Management and Business Intelligence domain. 54

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The company's new R&D Center, scheduled to open within three months, will support IT and engineering services for the automotive industry. They plan to aggressively recruit approximately 50-100 new employees with backgrounds in the automotive industry to assist with the development of new products for their existing and new clients.

8 P’s of TCS 1) Service Products:

§ § § § § § § § § §

Application development and maintenance Architecture and technology consulting BPO eBusiness Engineering and Industrial Services eSecurity IT Infrastructure Services Large projects Process Solutions RFID Solutions

2. People: In service sector people refers to the employees which represent the firm. In IT People are divided into 4 different zones. • • • •

Deep Domain Expertise Customer Proximity Continuous Training Talent Transformation

3. Place: In service place refers to location and use of distribution channels. § India § UK 55

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§ § § § § § §

France Germany Korea Hungary Japan Netherlands Ireland

4. Process In Service Industry Process refers to how a service is provided and delivered to the customer. IT relies on processes to consistently deliver high quality solutions while executing a growing number of engagements from multiple locations. Values, vision and policies form the first level of our three-tiered process architecture. They are implemented through process execution at the next level. These processes are defined with clear ownership using the ETVX (Entry, Task, Verification, and Exit) paradigm and clearly defined roles and responsibilities. 5. Physical Evidence TCS has corporate office in Mumbai, Kolkata, Hyderabad, and Banglaroe. 6. Productivity Productivity refers to the success or failure of any business, so the quality of the product should be very good for his companies have different quality standards which are certified by the quality department and are approved all over the world. If one does not have approved quality standards then he develops its own to meet the quality that are demanded by the customers When it comes to quality levels, there systems and processes have been placed at the top of the scale by various evaluating agencies. TCS has an organization-wide. ISO 9001 certification. They have 14 'delivery centers’ spread across India operating at 'Level 5', the highest point of SEI CMM certification. TCS has over 1,100 'certified quality assessors' (CQAs) among its people. This is the single largest number of CQA employees for any organization, and it constitutes over a 56

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third of the CQA fraternity in the world, they were the first organization in the world to be assessed at PCMM Level 4. This means that they have developed measurable people practices by empowering their workgroups, and by managing the capability and performance of their workforce quantitatively. They currently have four centers functioning at PCMM Level 4. TCS has adopted 'Six Sigma' practices at two of its centers, and has 12 Six Sigma black belts in its fold. 7. Price TCS has developed a new method of pricing software maintenance projects to make its revenues more effort-based and less manpower dependent. Starting this quarter, the company will start offering clients ‘ticket-based pricing’ as opposed to fixed price and time and material-based pricing for software maintenance projects. The move is aimed at increasing revenues without a proportional increase in the number of employees. Under the traditional time and material-based pricing, customers are billed based on the number of man-hours spent on a project, while under the fixed price, as the name suggests, the customer pays an agreed price that doesn’t vary with the manpower deployed on the project. Under the new ‘ticket-based pricing’, a customer’s pay will be based on certain parameters such as whether the client request or ‘ticket’ that is raised is for a small enhancement in the software application, a big enhancement or a bug-fix. “A software application becomes more stable with time. But if a client has opted for a fixed price model, then even after the application becomes more stable and the number of requests decreases, the same price has to be paid. Ticket-based pricing will give them the flexibility to change that and reduce the total cost of ownership 8. Promotion Over here, services and project consulting is through contract or agreement between the parties and promotions are carried out only for the particular client selected as upgrading and extended service for a particular period, etc. : This

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includes advertising, sales promotion, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company.

Swot Analysis of TCS Strength: • It's highly professionally managed IT consulting and services company under the belt of TATA. • Company has performed consistent year on year with weak economy conditions of world. • Company has capabilities to deliver new as well as legacy application. It is in space of services as well as products and high value chain consulting. • It has fragmented IT services and SDLC cycle into minute grains such as S/w testing and grown that business to more than 250million USD. This is the testimonial of efficient management. • It is the only company initiating Earned value based profit center for evaluating their performance. HLL is the first company to do so. • IT is the only company that has survived and surprised investors with its fixed cost Project delivery model and still making phenomenal profit despite overloading the project with 10 t o15 % in terms of resources. • Part of the Tata group, which helps it gets more international business. Cases in point: the $1.2-billion Nielsen deal, Ferrari, and now Jaguar-Land Rover (bought over by the Tata group)

Weakness: • 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 per cent of global revenues; IBM, Accenture score on this count. • Needs to strengthen other service lines besides application, development and maintenance (ADM) that accounts for nearly 48 per cent of its revenues. • Man power strength is more than 10,000 employees and thus, it is challenging to get personalized career development. 58

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• Bad real estate • Limited Product Line Opportunities: • • • • • • • • •

Change in consumer lifestyles Acquisitions Available Governmental support Available technological innovations Growth of the industry of operations Decrease in taxation Entering niche markets Merger or takeover Strategic alliances & joint ventures

Threats: • • • • • •

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Financial slowdown, slowing US economy. Labour challenges, globally. Competition from foreign markets Innovative products/services of competitors Changing technology New competitors entering the market

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BCG Matrix:

TCS SmartBox Support CentralBusiness Social Productivity Platform

TCS Rapid Sigma, TCS Team Center for Medical Devices

TCS Stand Alone Post Processor

In TCS Software products adds to 80% of the revenue followed by 20% from BPO, KPO. TCS SmartBox: Jointly developed by TCS and A*STAR Singapore Institute of Manufacturing Technology (SIMTech), it is a futuristic industrial controller that brings high-level control closer to the actual production process. It’s low-cost, open-architecture which has an in-built Rapid Application Development (RAD) framework, helps Original Equipment Manufacturers (OEMs) to create point solutions quickly and easily. Its applications include: Plant-wide control and optimization, Replacing PC-based control applications, connecting plant systems to enterprise applications, Control and monitoring of complex plant equipment, Distributed control applications, and Robotics & precision engineering.

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TCS Rapid Sigma: This is the world’s first certified composite on SAP xMII. It helps organizations practicing Six Sigma in reducing the ‘Time to Measure’ of data to nearly nil and also reducing the chances of statistically ‘un-fit’ data for analysis. Rapid Sigma is a ready to use, highly configurable tool which gets deployed on SAP xMII environment. The solution allows seamless integration to shop floor databases and SAP ERP. This integration saves valuable time of data collection and ensures that right data is collected in the right DMAIC phase from the right place. It cannot be treated as a separate, independent product which runs on its own (It’s a composite built using xMII). Also the functionality of this needs to be validated from a six sigma black belt champion before deploying it at the customer site. TCS Team Center for Medical Devices: This PLM solution delivers product innovation and development capabilities in a secure environment while constantly monitoring FDA compliance. Users can create, author and modify documents and route them through intuitive workflows that capture relevant information and dynamically converts approved documents to a secure format. It includes strict rule driven product based document control, training management, design Control (including Packaging and Labeling and Marketing Materials), production and process control (via Interface with MES), and application (Software) control. Device Master Records (DMR) are created and managed to ensure that the design meets the requirements, and risks are adequately captured, analyzed and controlled during the entire development cycle. Supported product features such as DHF, DHR and CAPA will provide medical device companies a single, integrated PLM platform, eliminating the need to sustain multiple systems and associated infrastructure. Support Central- Business Social Productivity Platform: SupportCentral is a next generation Collaboration and Business Productivity Platform that will enable your enterprise to thrive in this intensely competitive knowledge economy. SupportCentral can help meet 7 of the top technology and business priorities of CIOs worldwide.

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Having developed this solution for one of the world’s largest organizations, where it is the most used platform after Email, TCS is uniquely positioned to partner with your enterprise to maximize Return on Investment through significant dollar savings as well as increased productivity. SupportCentral’s unique “Communities of Practice” taxonomy, patented Expertise Management solution and powerful Workflow engine, all in a completely selfservice format needing no IT expertise, allows business users to create the solutions they need in the shortest possible time. Share Knowledge, Use Web 2.0 tools for boundaries’ Collaboration, Manage Portals and Documents, and Digitize Processes rapidly to create the Enterprise of the future. TCS Stand Alone Post Processor: This highly flexible and customizable solution offers post- processing solutions for various CNC machines and its configurations. It can reduce post processor development time up to 30-40% depending on the application and can be used for NC applications, which are not fully supported by third party NC post builders.

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Ansoff’ s Matrix:

MARKET PENETRATION STRATEGY Current Markets: India and Europe Current Products: BPO, KPO, TCS Bacs and Software Products. Recommendation: As most large clients in Europe are cutting costs, Tcs needs to be more aggressive on cost and quality front. Result of strategy: Likely to yield good results.

MARKET DEVELOPMENT STRATEGY New Market: USA, Australia Current Products: BPO, KPO, TCS Bacs and Software Products. Recommendation: Since these are fast developing IT market, Tcs needs a to focus from European markets to these markets. Result of strategy: Likely to yield good result.

PRODUCT DEVELOPMENT STRATEGY Current Market: India and Europe New Product: Tcs SmartBox, Jointly developed by TCS and A*STAR Singapore Institute of Manufacturing Technology (SIMTech), it is a futuristic industrial controller that brings high-level control closer to the actual production process.

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Recommendation: Concentrate on building expertise in these domains by strategic acquisitions. Result of Strategy: Likely to have good result.

DIVERSIFICATION: New Market: USA, Australia New product: Tcs SmartBox, Jointly developed by TCS and A*STAR Singapore Institute of Manufacturing Technology (SIMTech), it is a futuristic industrial controller that brings high-level control closer to the actual production process. Recommendation: Changing Brand image from low value service provider to high value service provider. Result of Strategy: Likely to have good result.

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Conclusions: Predicting what will come in an industry that evolves on an almost daily basis is a thankless and almost futile task. Things change at such a rapid rate, and many of the technologies are so fluid, that a shift in direction can occur in weeks rather than months. If we think that today's Internet and e-commerce opportunities are technically advanced, we have not seen anything yet. Not only will the existing uses of the Internet get more and more advanced, but new ways will be found to exploit the opportunities it provides. The delivery of these services will not just be dependant on new formats and programming, but also on the mediums that deliver them. For this to happen, certain changes will need to take place, not just technological, but legal as well. Protection of consumers needs to be examined, as well as considerations such as copyright protection and piracy prevention. As well as using conventional methods to connect to the Internet, wireless access will also become a common approach. Although we already have wireless data devices, the wireless computing industry is still in its relative infancy. With wireless transmission speed developing at a rapid rate, coupled with the availability of wireless data services, this is one area of technology that is sure to become a big mover. Even now, hand-held computers or Personal Digital Assistants are becoming commonplace. Technology continues to advance, constantly changing how we work, where we work, and the skills we need to work. What the future holds for IT is impossible to predict, but it's guaranteed to be a wild ride.

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Bibliography & References

1. Magazines a. b. c. d.

Computer World Dataquest PC Quest Computronics

2. Internet a. b. c. d. e. f.

www.infosys.com www.tcs.com www.oracle.com www.businessballs.com www.marketingprofs.com www.nasscom.org

3. News Paper a. Economic Times b. Mint

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