Swot of Tcs

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Swot

Strengths

1. Clients from a variety of industries

TCS serves clients in a variety of industries, including banking, financial services, retail,
telecommunications, and media & entertainment. Exposure to a variety of company industries
reduces the risk of becoming overly reliant on a particular market or industry.

2. Geographical Impact

TCS has deliberately grown to geographically diverse markets around the world, including North
America, the United Kingdom, the Middle East, Europe, Africa, and Asia-Pacific. TCS's presence
in geographically diverse areas lessens business risks while also establishing a strong worldwide
image.

3. Strategic Partnership

TCS has formed solid partnerships with multinational corporations all around the world. It
collaborated with tech titans such as Adobe, Dell, Amazon, HIP, Bosch, and others. Through
these relationships, TCS provides both technologically sustainable and innovative commercial
and strategic solutions.

4. Strong service portfolio

TCS has a comprehensive and well-balanced service offering that comprises application
development and maintenance of Business Process Services (BPS), IT infrastructures, business
intelligence, and other services. A powerful and broad portfolio is attracted by a variety of
commercial customers.

Weakness

1. Legal Battles

TCS was involved in a legal struggle with Epic Systems in 2014 over the alleged misuse of
Epic Systems' confidential information. TCS was found guilty in 2016 and ordered to pay
$940 million in damages. TCS opposes the decision and intends to appeal it to a higher
court. Such accidents have a negative impact on the company's image.

1. Diligent decline in performance

TCS subsidiary Diligenta has consistently performed below expectations. The company is
unlikely to improve its performance rapidly, which will have an impact on TCS's bottom line.
Opportunities

1. Digital transformation

As the world becomes more digital, business dynamics are evolving to reflect this also shift.
TCS has concentrated on digital transformation and the provision of digital solutions. TCS
should plan to invest more in digital transformation technology in the future.

2. Cloud-based solutions

With the emergence of digital transformation technologies and high-speed internet


connectivity, cloud-based solutions have become increasingly popular. The world is shifting
to cloud-based solutions, with spending on cloud services set to expand at a CAGR of over
19 percent over the next five years. TCS has a solid infrastructure for providing cloud-based
solutions and is thus well positioned to benefit from the increased demand.

3. M2M solutions (machine-to-machine)

Wireless and cable communications systems are also possible with M2M solutions. M2M
solutions have a bright future ahead of them and are projected to produce significant
income. TCS offers a broad array of M2M services, allowing it to capitalise on the growing
demand for M2M solutions.

Threats

1. Immigration and Its Limits

With immigration laws, higher H-1B visa fees, and changing political situations in the US,
Indian IT companies are anticipated to suffer as their costs rise and impair profitability. As a
result, they pose a risk to the industry.

2. Intense rivalry

IT firms like Infosys, Wipro, Capgemini, Deloitte, Accenture, and others are up against stiff
competition. As a result, there are price wars in the industry, and market share is limited.

3. High attrition rate

The Indian IT industry has a high attrition rate, which drives up expenditures to train new
personnel and improve leadership abilities, as well as affecting the company's reputation.

Market Share Breakdown


On Wednesday(October 7,2021), Tata Consultancy Services (TCS) became the first Indian
technology corporation to reach the $200 billion market capitalization (m-cap) threshold.
TCS's shares hit a new career high of Rs 3,980 before concluding the day at Rs 3,955, up 1.8
percent from the previous day's close, extending this year's winning run. Following a
dramatic increase in IT stocks, the IT services behemoth's stock has risen 35% this year.

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