About TCS
TCS was formed on April 1, 1968, as a branch of Tata Sons to build demand for downstream
computer services. Jamsetji Tata established it, and it is now one of India’s most esteemed firms.
TCS now has 50 companies that offer information technology goods and services such as
business process outsourcing, application development, consultancy capacity planning,
enterprise software and more.
As the Indian financial system continued to expand in the twenty-first century, the need for
technology to restrict extensive augmentation became part of the national blueprint. TCS, which
had been investing more time in domestic IT from its inception, was ideally positioned to help the
National Government at the federal and state levels in its innovative initiatives.
TCS created a digital distribution system on its own initiative as an expression of the company’s
pioneering attitude and with the goal of spreading the advantages of the IT upgrade across the
country. TCS’s ability to deliver high-quality overhauls and resolutions is unrivaled.
What’s new with TCS
Check out some current news about TCS:
• TCS was chosen as JLR’s transformation partner to provide ready-for-the-future digital
services for their customers.
• Students’ One Step Gamified Learning Platform wins the Grand Prize at the TCS
Sustainathon Singapore 2023.
• As the first major shift under the new CEO, TCS returns to a vertical-based operational
structure.
Now that we’ve established the firm’s core business, let’s delve into the SWOT Analysis of TCS.
SWOT Analysis of TCS
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SWOT analysis is a structured approach to evaluate a company’s strategic position by analysing
its strengths, weaknesses, opportunities, and threats. It is a simple technique to analyse the
outcomes of a marketing evaluation. The SWOT analysis of TCS are as follows:
1. Strengths of TCS
Strengths are an organization’s distinct skills that offer it a competitive edge in gaining greater
market share, attracting more customers, and maximizing profitability. TCS’s strengths are listed
below:
• Extensive Global Reach – TCS’s global reach, which currently extends from North
America, the United Kingdom, Africa, Europe, and the Asia-Pacific regions, reflects the
company’s efforts to obtain as much coverage as possible in diverse areas. TCS has a
strong worldwide image thanks to its presence in a variety of geographical locations.
• Major number of Customers from various sectors – TCS supports customers in a wide
range of industries, including banking, finance, retail, telecommunications, and media &
entertainment. Exposure to different enterprises mitigates the hazards of over-
dependence on a particular market or industry.
• Strong reputed Brand Image in the market – TCS has unquestionably created its own
brand, image, and reputation; it keeps its consumers satisfied and acts as a sign of
excellence.
• Well-established strategic alliances – TCS has formed significant alliances with
multinational companies all around the world. It collaborated with technology
powerhouses such as Amazon, Adobe, Dell, Bosch, and HP, among others. Through these
partnerships, TCS provides both technologically viable and creative commercial and
tactical solutions.
• Robust Service Portfolio – TCS has a diverse service offering that includes application
development and maintenance of Business Process Services (BPS), IT infrastructures,
business intelligence, and more. A robust and diversified portfolio is drawn to various
corporate clients.
• Empowered and encouraged employees – Through effective training and learning
initiatives, a highly competent workforce has been created. TCS invests heavily in
employee training and development, resulting in a staff that is not just highly competent
but also driven to achieve greater success.
• Excellent returns on capital invested – TCS has an excellent track record of executing
new projects and generating good returns on capital expenditure by establishing new
income streams.
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2. Weaknesses of TCS
Weaknesses are elements of a company or brand that need to be improved. The following are
significant flaws from the SWOT Analysis of TCS:
• Performance of Diligenta deteriorated – Diligenta, a TCS subsidiary, has consistently
performed poorly. TCS’s bottom line is unlikely to improve rapidly as a result of the
enterprise’s poor performance and hence has a negative effect.
• Legal Squabbles – TCS filed a lawsuit against Epic System in 2014 for suspected abuse of
private information. TCS was found guilty in 2016 and was charged $940 million in
damages. TCS objected to and rejected the higher competence’s decision. Such incidents
have a negative impact on the company’s image.
• The product segment is not relatively impressive – While TCS does well by delivering the
greatest services, its products aren’t what one would anticipate from a company of its
kind. They do require some effort.
3. Opportunities for TCS
Opportunities are possible areas of emphasis for a firm to focus on in order to enhance
outcomes, boost sales, and, eventually, profit.
• Emerging Interest in Cloud Computing – Digital technologies and high-speed internet
access have evolved. In fact, spending on cloud services will rise at a CAGR of 19% over
the next five years. Society is shifting towards cloud-based solutions. TCS has a robust
cloud-based infrastructure and is thus prepared to capitalise on the created demand.
• M2M Solutions – Wireless and cable communications systems are both enabled by
Machine to Machine (M2M) solutions. There are bright possibilities for M2M solutions in the
future, and revenues are projected to be substantial. TCS offers a comprehensive variety
of M2M services, allowing the need for M2M solutions to be met.
• Transformation of the Digital Universe – Because the world is becoming more digital,
business forces are altering the digital economy. TCS’s primary goal is to digitally
transform and deliver digital solutions. TCS could expect more expenditure on technology
for digital transformation.
• Solutions for mobility – With a rising mobile worker population and the increased usage
of sophisticated mobile devices, enterprise mobility solutions are expected to be driven
by business applications. The demand for mobility solutions is latent and is expected to
grow at a CAGR of 24.7 per cent through 2022. TCS is well-positioned to profit from its
increased emphasis on the development of enterprise mobility solutions.
4. Threats to TCS
Threats are environmental elements that might have a negative impact on a company’s success.
TCS’s threats include the following:
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• Competition is fierce – IT firms such as Infosys, Wipro, Capgemini, Deloitte, Accenture,
and others confront fierce rivalry. As a result, the industry is experiencing price wars and
has a restricted market share.
• A high rate of attrition – The Indian IT sector has a high rate of turnover, which raises the
expense of providing new workers with skills and leadership development and has a
negative impact on the company’s reputation.
• The Constraints on Immigration – With immigration regulations, increasing H-1B visa
fees, and changing political situations in the US, Indian IT firms are anticipated to suffer
as they increase their costs and damage profitability, posing a risk to the sector.
• Large multinational corporations – Large multinational corporations are expanding into
India and competing for a worldwide clientele.
Top Five Competitors of TCS
• Accenture: Global consulting company Accenture provides a number of services,
including assisting companies with their technology and strategy requirements. It’s a
formidable competitor to TCS since it excels at adjusting to shifting business conditions
and has an abundance of experience across numerous global businesses.
• Cognizant: Global business Cognizant assists companies with their IT requirements,
particularly those related to modernization and emerging digital. They compete with TCS
by being inventive, adaptable, and customer-centered.
• Computer Horizons Corp. U.S.-based provider of IT services, Computer Horizons Corp.,
provides consulting and software development services. Despite being smaller than TCS,
it differentiates itself by providing specialized solutions and knowledge, particularly in the
regional markets where TCS is active.
• Wipro: An international IT firm based in India, Wipro offers IT solutions and consulting
services to a range of sectors. By putting an emphasis on innovation, sustainability, and
knowledge of cutting-edge technology while servicing clients worldwide, it competes with
TCS.
• Infosys: The Indian-based, international IT firm Infosys provides the development of
software, consultation, and outsourcing solutions. It competes with TCS by focusing on
modern technology for clients throughout the world and being inventive and global.
This brings us to the end of the case study on the SWOT Analysis of TCS. Let us sum up our
understanding in the next section.
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