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TCS Case Analysis

- TCS launched a marketing campaign called "Experience Certainty" to build its global brand and position itself as a provider of business solutions and outsourcing that could ensure predictable and reliable outcomes for customers. - The campaign aimed to make TCS one of the top 10 players in the industry by 2010 based on brand recognition rather than just delivery track record, which was over 96% on time. - TCS' global delivery model provided common service standards worldwide to back up its message of "Experience Certainty".

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Shubham Pandey
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264 views

TCS Case Analysis

- TCS launched a marketing campaign called "Experience Certainty" to build its global brand and position itself as a provider of business solutions and outsourcing that could ensure predictable and reliable outcomes for customers. - The campaign aimed to make TCS one of the top 10 players in the industry by 2010 based on brand recognition rather than just delivery track record, which was over 96% on time. - TCS' global delivery model provided common service standards worldwide to back up its message of "Experience Certainty".

Uploaded by

Shubham Pandey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TCS Case analysis 

1) CAGR for the Indian Industry from FYOO to FY07E?

- It is 28% (calculated using = $45/$8^1/7-1 (Revenues in USD Million)

2) What is TCS Product Mix?

Hardware, Software
Global IT Support and Installation, Technical
Service Product Support Maintenance Support, and Repairs
Consulting, Development
Long-term support and Integration, IT
Professional contracts, per-incident Management and
  Service fee-based arrangements Process Management
Core IT Services
Technology services
Testing/assurance
Business intelligence/ knowledge
management
Enterprise solutions
5 Growth Engines of TCS
IT Infrastructure Services
Platform-based Business Process
Outsourcing:
Engineering and Industrial Services
Global Consulting
Asset Based Offerings

3) Turn Exhibit 14's costs (the full table) into cost as % of total yearly revenues

Total Annual Revenue ₹98,32 Contributio ₹1,34,46 Contributio


in Rs. Million 1 n% 4 n% ₹1,72,875
  FY05 FY06 FY07
Employee Cost 41,906 43% 56,901 42% 82,657 48%
Equipment &
5,004 5% 7,421 6% 6,783
Software 4%
Depreciation 1,112 1% 1,931 1% 2,912 2%
Travel 1,923 2% 2,354 2% 2,531 1%
Communication 808 1% 1,185 1% 1,526 1%
Rent 0 0 1,057 1% 1,603 1%
Other Costs 1,463 1% 2,684 2% 6,114 4%
1,04,12
Total 52,217 53% 73,533 55%
6 60%

SG&A            
Employee Cost 8,483 9% 12,339 9% 18,859 11%
Bad Debts & Provisions for
415 0% 405 0% 254 0%
Doubtful Debts
Depreciation 466 0% 879 1% 1,384 1%
Rent 1,289 1% 1,074 1% 1,820 1%
Travel 916 1% 1,904 1% 2,565 1%
Communication 636 1% 877 1% 1,062 1%
Recruitment and Training 412 0% 785 1% 1,319 1%
Professional Fees 1,283 1% 1,164 1% 1,420 1%
Other Costs 3,903 4% 5,186 4% 6,647 4%
Research and
325 0% 415 0% 433 0%
Development
Total 18,127 18% 25,028 19% 35,762 21%

Total 1 53% 55% 60%


Total 2 18% 19% 21%
Grand Total 71% 74% 81%
Operating Margin 29% 26% 19%

5) After carefully reading the section entitled "The 'Experience Certainty' strategy", do
you think TCS did the right thing by launching an "Experience Certainty" marketing
campaign? What would you like to know to strengthen your conclusions?

 Global IT service -TCS a business solution and outsourcing company, launched


a comprehensive marketing campaign to enhance and build its global brand.
The new brand assurance -- Experience Certainty -- was a crisp articulation of
what TCS aimed to offer the world. It represented TCS' ability and
commitment to deliver, and provide assurance to customers, partners, staff
and society at large. 
 The move was to become amongst the top 10 players in its industry by 2010
and compete from a brand perception and recognition perspective which no
longer just focused on delivery’s' track record of Delivery Excellence was the
key differentiator for the company with approx. 96.63% of TCS deliverables
that were achieved on time.
 TCS' Global Network Delivery Model was a unique network that delivered
common global service standards for customers worldwide, irrespective of
location.
 The focus was on growth, partnership and success, coupled with strong staff
retention, and ability to provide certainty of outcome to customers.

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