TCS Vs INFOSYS

Past, Current, Future Plans

ARSHPREET KAURSHAU CHAUHAN

SIDDHARTH MALHOTRAMBA 4 (2013-2015)

UNIVERSITY SCHOOL OF BUSINESSCHANDIGARH UNIVERSITY

INTRODUCTION AND PAST PLANS

Entry in market by TCS • Its early contracts included providing punched card services to

sister company TISCO (now Tata Steel), fortune ranking 1 working on an Inter-Branch Reconciliation System for the Central Bank of India, and providing bureau services to Unit Trust of India.

• In 1979, TCS delivered an electronic depository and trading system called SECOM for the Swiss company.

• In 2004, TCS came up with TCS Global service delivery framework• In 2005, TCS became the first India-based IT services company to

enter the bioinformatics market.• In 2006, TCS designed an ERP system for the Indian Railway

Catering and Tourism Corporation.• In 2008 ,Recession came which effected the business ,as TCS was

having a model in which they were collecting contracts ,which were formed and delivered but due to recession contract offer got stopped .

Entry in market by INFOSYS• In 1981,The company is engaged in software development in the

form of services, turnkey projects and products for the domestic and export market. The software development is targeted towards the distribution, banking, telecommunication and manufacturing sectors worldwide.

• Finnacle is a core banking software package developed by Indian technology corporation Infosys

• In 1985-1990, the time difference, Infosys realized it had to have a value proposition that could excite customers, and hit upon a 24-hour workday. In the time customers in the US went home from work and returned the next morning, a solution would be waiting them. The Global Delivery Model (GDM) was born.

• Infosys’ market capitalization has grown from Rs. 192 crore* in fiscal ’94, to Rs. 82,154 crore* in fiscal ’06.

• In 2008, when recession came infosys wasn’t effected much due to their policy of having contracts on lease which were long duration .

CSR policies adopted by TCS • Developing innovative solutions to address large-scale societal

problems by utilizing our IT core competence.• Volunteering for projects that address the felt need of

communities in which TCS operates, while aligning with the core themes of TCS’ CSR.

• Participating in community development program championed by our clients.

• Partnering with select non-government and civil society organizations and other government bodies.

• Supporting large-scale causes such as disaster relief or any other cause as determined by the Corporate CSR Council.

CSR policies adopted by INFOSYS• Sustainability agenda focuses on three themes — social contract,

resource intensity and green innovation.• SOCIAL CONTRACT:• Launched First Take, a communication campaign to sustain direct

connect with employees.• Covered 372 colleges under Campus Connect, our industry-

academia partnership program.• Citizen of Earth (iCOE) is the Infosys program to build responsible

citizenship among Infoscions around the world.

• RESOURCE INTENSITY:• 43.6 percent reduction in electricity intensity against the baseline

set in fiscal year 2008• 34.5 percent reduction in water intensity against the baseline set

in fiscal year 2008

• Green innovation:• 95 percent improvement in enterprise storage performance from

Dynamic Storage Tier technology deployment• Partnered with COMMIT to develop wearable computing

technology• 25 percent improvement in agent productivity for a telecom

client that deployed Assist Edge• Reduction in carbon footprint by optimizing the customer asset

management process• Developed a platform for a major US electrical utilities company

to enable consumers to switch to renewable energy• 75.6 million units of electricity from renewable sources in fiscal

year 2014• 10.1 MW of connected load reduction through HVAC retrofits

since fiscal year 2011• 3.4 million sq.ft. of highest rated green buildings• 2.0 MW of onsite solar power plants

CURRENT SCENARIO

Current plans of TCS

•ADAPTING TO CHANGE Every vertical has been asked to identify senior staff who have

not been very productive, say sources 

Those under the scanner are above the rank of consultant - senior consultant, principal consultant, vice-presidents 

The firm is also pulling back staff from onsite locations, especially those whose roles are not being considered critical

Current HR scenario of TCS Manpower planning 

TCS has standard practices and processes for resource mobilisation. Manpower Allocation Task Committee (MATC) is a corporate function with branch and geography level representation. Its main responsibility is allocating people in various projects. The TCS intranet systems maintain up-to-date resumes and skill sets of all associates.

Learning and development 

TCS invests about 4 per cent of its annual revenues in Learning and Development, to build competency capital within the company in cutting edge technologies, domain and functional areas. Special emphasis is placed on providing necessary learning interventions to associates with potential of being leaders in the company. 

• Continuous Learning Program (CLP) 

Continuous Learning Program (CLP) is a manifestation of the company's commitment to the continuous growth of associates, in line with the core value of Learning & Sharing.

• Leadership Development Program (LDP)  Associates are carefully assessed for leadership potential and then put

through rigorous branded programs. TCS also encourages associates to attend various programs at premier B-schools across the globe. 

• Foreign Language Initiative (FLI)  Foreign Language Initiative is to help the associates to communicate

effectively with the customers. Under this initiative, associates are encouraged to learn one or more foreign languages. This initiative also helps associates to use English effectively for business communication. This is highly beneficial in a company with a diverse workforce. 

Current HR scenario of TCS

Compensation Plan of TCS  ’Global HR of TCS, said India's largest IT exporter, which employees

around 3 lakh people, is looking at increasing salaries of those joining fresh out of campus.’

Currently, entry-level salaries in TCS and other IT exporters are in the range of 3.2- 3.5 lakh annually.₹ ₹

“While compensation is important, their medical policies are the best in the industry and they have offered hikes of 10 per cent in the last financial year,”

Mukherjee said that attrition cools down in the second half of the financial year. Attrition in TCS is amongst the lowest in the top IT companies, with the company reporting 12.8 per cent attrition in the second quarter of this financial year, lesser than Infosys and Wipro.

Current IT Scenario of TCSAfter the recent rally in its stock price, Tata Consultancy Services (TCS) is now the

world’s second-most-valuable ITservices company ahead of Accenture and Hewlett-Packard but behind IBM.

There are three key determinants of growth:- First is the strength of the sales process. TCS has a pretty aggressive sales team

with the CEO himself leading the charge.  Then there is the ability to execute projects and manage margins. This is what

 lastly, the continuity of the top management.  lastly, the continuity of the top management.

TCS, which accounted for nearly 47 per cent of the IT industry’s combined market cap and nearly four-fifths of the total net profit of listed IT companies on the BSE-500 index last financial year.

TCS launches five point plan for effective ‘e-Governance’ in India

•E-Governance: is the application of information and communication technology (ICT) for delivering government services, exchange of information communication transactions, between government-to-customer (G2C), government-to-business (G2B), government-to-government (G2G) as well as back office processes and interactions within the entire government framework.

The three main target groups that can be distinguished in governance concepts are government, citizens and businesses/interest group. 

1.  A nationwide mandate to allocate a fixed percentage (3%) of the annual budget for e-Governance projects.

2. The need to adopt an integrated and holistic approach focused on services.

3.  National level oversight of any e-Governance programme and thereby move from individualized e-Governance to institutionalized e-Governance.

4.   A Fixed Tenure concept where key government executives are appointed for the entire term of any e-Governance initiative. 

5.  A government standing committee to oversee national e-Governance programs.

FUTURE PLANS

FUTURE PLANS – TCS (IT)Target Sectors:

• Apart from financial services (where Infosys has a major hold) definitely retail, manufacturing, telecom, which we are already in, there it sees 4% - 5% range of utility and pharmacy again in the 4-5% range. TCS would like to definitely push it to double digit sector double-digit that is 12-15% and retail has the potential to go to 15-20% from the current 12% level.

• Pharma sector and healthcare will be somewhere in the 10-15% range while manufacturing and hi-tech together can grow to 20% plus.

FUTURE PLANS – TCS (IT) Verticals

• TCS Bancs (Industry Leader)• Digital Vertical (Virtualization, Automation and Digital

Marketing)

Core Strategies to adopt

• There are two aspects that are going to play. One is the speed with which we can acquire clients and the second one is the speed with which we can build solutions.

Geographies to Target• South Africa• Middle East

FUTURE PLANS – TCS (HR)• To cater to the plans for next 4 years, TCS hired a

workforce of 45,000 in the 2015. TCS became the first organization to have a million women employees. Also there has been an increase in the lateral hiring.

• To retain its employees after the buzz, TCS announced a one time bonus for its existing employees, but also did decrease the annual appraisal compensation to 8% for a C band employee.

FUTURE PLANS – INFOSYS (IT)

• Exploring to acquire companies in newer technologies like artificial intelligence, collaboration, automation, Internet of Things 

• Engaging with start-ups to complement capabilities and invest in them where required 

• Acquiring 'innovative? companies for geographic penetration 

• Improving sales engine by retraining and launching automation platforms like marketplace 

• Expanding headcount in newer technologies like big data & analytics, cloud and digital

FUTURE PLANS – INFOSYS (IT)

• Infosys is modelling its research and development arm, Infosys Labs, on the lines of the legendary labs such as those of Xerox PARC and Bell Labs.

• Also working on including the possibility of creating next gen tech services to cater to areas such as 3D printing, home and office automation.

• Infosys has even architected the company's second major acquisition this year after Panaya, spending $120 million to buy US-based mobile commerce company Skava.

FUTURE PLANS – INFOSYS (HR)• To Cater to the future plans, Infosys will recruit up to 300

management and technology graduates from leading US universities. They will work across multiple technology domains including digital, big data, analytics and cloud. Up to 180 graduates will be recruited into the Infosys consulting practice in the US. They will join existing teams advising clients on business and technology transformation strategies. Infosys will also continue its global recruitment program of hiring MBA graduates from leading business schools, and will recruit 100 Masters graduates for its sales teams under this initiative

• To stabilize the attrition which was 21% , Infosys did gave I phones to Managers handling core positions.

• It Kept the appraisal compensation similar as during previous years.

THANK YOU