42 CHAPTER 3 INDUSTRY & COMPANY PROFILES 3.1. Industry Profile 3.1.1. Introduction Indian Software industry has tremendous growth and economic policy has a substantial revision in 20th century. The IT industry offer opportunities for foreign direct investment. Due to liberalization, industries were grown by which foreign reserves as well as employment opportunities have increased. In the initial days, IT firms export software to other countries because here man power is widely available with low cost. As the potential of the software industry was identified government of India developed high speed infrastructure to meet the demands of foreign clients. Indian software companies developed high quality as well as unique software to meet the needs of multinational companies as a result they obtain a wider range of software development tasks. IT/ITES sector has listed incredible growth over the decade, achieving iconic position all over the world and a reputation for cost-effective delivery of services. IT companies in India have set up over 600 delivery centres all over the world. The revenues have grown from 1.2 percent (1997-98) to 8.1 percent (2013-14). India maintains top position in the global sourcing arena, for about 55 percent in the year 2013 (of the global sourcing market size) compared to 52 percent in 2012. (source:nasscom) Today the world s largest outsourcing destination for IT industry is India, which is around 52 percent of the US dollar 124-130 billion market. The IT industry employs roughly 10 million Indians which ultimately contribute to the economic growth of the country. The Unique Selling Proposition (USP) of Indian IT services is its cost competitiveness which is 3-4 times cheaper than the USA. Many firms like TCS, Infosys, and Wipro have met top certification for the quality standards. According to the report of National Association of Software and Service Companies (Nasscom), GDP share has grown widely when compared to other industries [142]. India exports information and software services rather than products to 95 countries all over the world. The top
43 5 firms in terms of revenue are TCS, Wipro, Infosys, HP India, and IBM [143]. Top companies contribute 80% of revenues from Indian Software industry. 3.1.2. Evolution of IT Industry During 1950s people are not aware of the term software, the term was bundled with hardware by some multinational companies like IBM and ICL with some basic languages like PASCAL etc. These two are the largest hardware companies which provide basic services. In mid 1970 s India exported its first software service. The problem here to export software is companies had to design its own hard ware system which needs to fulfill worldwide standards. In order to import the hardware system government of India impose heavy duty tax which the Indian companies cannot afford on their own. After few years Indian government has reduced the tax duty with condition that exporters would recover twice the value of foreign exchange spent on importing the computers. Then the era of software begins in India. India has largest technical skilled employees working with low salaries and they shift from one industry to industry to other because of fewer companies. The Indian programmers were available with less than 12 dollars and the Indian firms are ready to complete the software projects for the half of the cost when they compared with abroad. This creates a numerous jobs for Indian employees and free profit opportunity for foreign companies. There is a shortage of employees in US for the projects in their companies and in India oversupply of employees lead to match the demand and supply in both countries because of this software industry. The Government of Andhra Pradesh particularly setup several IT parks and hubs to reduce unemployment. Companies that come under these parks are tax free and have extraordinary facilities with high speed data communication and internet. The central government gave the power to state government regarding licenses, import or export procedures. Tata Consultancy Services (TCS) was the first software company in India and got export assignment in 1973. TCS has begun to outsource application work for Central Bank of India. The company sent some engineers to abroad in order to excel in their platforms. The main competitive advantage for Indian software companies are cost reduction and the ability to communicate in English. The main reason to export software is to increase foreign exchange in India. In 1970s the main challenges for software industry are
44 1. Rigid government rules:- Government of India restricted that all multinational companies must invest their share less than 50 percent whereas Indian companies share must be more than 50 percent. 2. Lack of trained personnel: - As already exited employees skill does not match to the organizations need, companies need to train the employees. 3. Heavy import tax: - As the companies need hardware to match the need of software industry, they used to import from other countries in as India impose heavy taxes. 4. Education in India: - The courses in India do not match to the need of the companies, so companies need to train in soft skills. 5. Updated Technology:- As the companies need to update technology, it seems to be a huge cost. 3.1.3. NASSCOM The National Association of Service and Software Companies (NASSCOM), India s Software association was formed in the year 1988. The main aim of this NASSCOM is to liberalize the policies of government regarding software companies, issuing of stocks in capital markets, and improve infrastructure facilities [145]. NASSCOM provides most reliable information about software industry in India. The role of NASSCOM is effective in representing large scale enterprises but does not consider any small or medium enterprises. It forced to establish Software Technology Park and with basic infrastructure facilities to export software. 3.1.4. Software Industry- Impact on Indian Economy Before 1990s the policies of Indian Government is very rigid if any oversees company want to start in India. By that time the government does not have any foreign reserves, then the government of P.V.Narasimha Rao, decided for liberalization, so that industries had started tremendously [146]. Multinational Companies started to invest in India because they identified huge manpower with low cost. This created a huge foreign reserves as well as employment opportunities to young and fresh software engineers with high remuneration. The IT industry has identified as a knowledge industry due to its Information Technology Enabled Services (ITES) and IT services. The Business Process Outsourcing industry has quickly developed with a sign of new initiatives. With significant growth of BPO and IT industry, India has become one of the
45 most chosen offshore destinations (source: The NASSCOM - McKinsey Study 2002). Due to the tremendous growth of ITES industry results a enormous inflow of foreign direct investments that have set up huge facilities all over the India which results the entry of IT industry into the BPO- ITES sector. The tremendous growth of IT-ITES sector in India, has contributed to the growth of GDP, unemployment reduction and promotion of exports. The IT industry substantially contributed to India s GDP 1.2% in FY 1998 to 7.5% in FY 2012[147]. The IT industry has proved itself as job creating and wealth industry, in few years, employing several millions of software professionals all over the world. According to the report of NASSCOM, IT industry has added 1,60,000 employees in the year 2013, which provides indirect employment to 10 million people and direct employment to 3.1 million people. In the year 2014, IT services have increased to $99 billion. NASSCOM has also forecasted that Indian ITES and IT industry is likely to grow around $300 billion by the financial year 2020, particularly concentrating on the areas like software products and e- commerce. 3.1.5. Y2K Problem as an opportunity In 1993 the US Immigration made several restrictions to issue H-1 and B-1 visas and they paid less salary to Indian employees and Indian software professional need to pay social security and related taxes to US government which is a burden to the employees and also companies. So, companies plan not to send them but to complete the project in India according to the needs and wants of clients. This creates lack of talented personnel in US, mean while Y2K problem also create an opportunity for Indian employees. In order to overcome the Y2K problem US need the employees who are aware of COBOL programming which has been outdated in 1990s, but in India still the language was taught, this helped the employees to increase employment opportunities in India and abroad. 3.1.6. Revenue The IT-ITES industry Revenue trends over the last five years is as follows
46 Figure 3.1: Revenue Trends of IT Industry as on 2009-2014 Source: Reports of Dept. of Electronics and IT, Govt. of India 3.1.7. Exports The segment-wise export revenue trends are shown in the following table 3.2.
Fig 3.2: Segment wise Export Revenue Trends in IT-ITES Industry during 2009-14 47
48 3.1.8. Domestic Revenues The segment wise Domestic Revenue Trends over five years are tabulated as follows: Fig 3.3: Segment wise Trends of Domestic Revenue in IT & ITES Industry during 2009-14 1.1.9. Employment Opportunities Source: Reports of Dept. of Electronics and IT, Govt. of India
49 The ITES and IT industry has generated a huge employment in the past and continues the same trend. With e-commerce and social media, there is a great demand for software professionals all over the world. In the year 2013, TCS hired 20,000 fresh graduates all over India followed by Dell, Infosys, Wipro and IBM. After Bangalore and Pune is the preferred city for these tech jobs in the country. Companies like HCL Technologies, Cognizant Technology Solutions, Tata Consultancy Services, Accenture, Capgemini, Amazon, Delloitte Consultancy and Microsoft Corporation among others are highly investing in India. Cities like Hyderabad, Trivandrum, Chennai, Delhi, Bangalore, Mumbai and Pune together are providing jobs to a huge number of people. The IT-ITES industry employment sector is estimated to reach 3.1 million in the FY2013-14 and indirect employment is estimated about 10 million in the FY 2013-14. The direct employment by the sector over the last five years is tabulated as follows.
50 Fig 3.4: Employment in IT & ITES Industry as on 2009 to 14 Source: Reports of Dept. of Electronics and IT, Govt. of India 3.1.10. IT & ITES Industry in FY 2015 According to Nasscom, IT exports to grow 13-15% in FY 2014-15 to reach $97-99 billion. India s IT and ITES sector is estimated to have generated US$146 billion revenues during FY 2015 compared to US$ 118 billion in FY 2014 with a growth rate of 23.72%. The IT sector has contributed India s GDP to 9.5% in FY 2015 from 1.2 % in FY 1998. India has added 5.8 million employees to the talent pool in the FY2015. According to the Department of Industrial Policy and Promotion (DIPP), India attracted a huge Foreign Direct Investment (FDI) worth US$17.575 billion between April 2000 and May 2015. According to Nasscom report, the top 10 IT Companies are as follows [148]: 1. Tata Consultancy services Ltd 2. Infosys Ltd 3. Wipro Ltd 4. HCL Technologies Ltd 5. Tech Mahindra Ltd 6. L&T Infotech 7. Syntel Ltd 8. Mphasis Ltd 9. Genpact India Pvt. Ltd.
51 10. igate After a serious recession there was a speedy pick up of IT industries in India in 2013 scores more revenue rather than financial, Banking, and Insurance Sector. 3.1.11. Future of Software Industry Indian software industry seems to be dazzling because all private and government organizations are computerized to reduce manual work as well as manpower, huge talented scientists, liberalized government policy, employees available with low salary. The weaknesses are lack of updated infrastructure, lack of new product innovation, lack of financial support. The companies need to locate head office in India and implement corporate strategies to meet international standards. Colleges need to train students in order to reduce the gap between demand and supply in IT industry. The growth of E-commerce made customers easy to purchase goods instead of going to marketplace. 3.1.12. Challenges of Indian Software Industry 1. Education System in India:- The education system in India is not updated and students does not have any practical exposure. So, organizations must educate the students as per the global needs. 2. Lack of Monitoring in Education sector:- Generally AICTE (All India Council for Technical Education) only look after the facilities in the organization, but other than other still there must some more committees to guide the colleges in order to improve infrastructure as well as soft skills needed for the students. 3. Lack of Project management skills: - As students do not have management skills according to the corporate companies creates huge cost to the organization. 4. Poor Communication skills: - Students from rural background have good subject knowledge but unable to express in English which a major drawback for students. Organizations must motivate the students to inculcate communication skills before they complete their education. 5. Lack of Industrial Experience: - Students must have industrial exposure and update themselves according to the needs of Industry. Along with bookish knowledge students should have practical so that they can implement in corporate field.
52 6. Poor Infrastructure facilities:- As the Colleges have poor infrastructure facilities is a major problem for students. 7. Impact of US economy:- As most of companies depend on US for projects faced a severe problem during recession. So, companies must concentrate not only on US but also other countries. 8. Other resources:- During recession Indian companies retrenched the employees because they do not have projects, so companies need to look after not only Multinational projects but also Local projects. 9. Huge cost:- Companies specialized in particular technology can become obsolete after few years, so companies (or) employees cannot work permanently, they want to substitute with new technology. 10. Different legal laws and norms:- As different countries have different legal laws and norms, companies need to know every country laws before they invest. 3.2. Company Profiles 3.2.1. Profile of Cognizant Technology Solutions 3.2.1.1. Origin & Growth of the Cognizant Technology Solutions Cognizant Technology Solutions Corporation (Cognizant), Started in the year 1988 with a mission that To dedicate our business process and technology innovation know-how, our deep industry expertise and worldwide resources to working together with clients to make their businesses stronger. The Vision of Cognizant is To lead sustainable growths with environmental friendly practices and responsible use of natural resources. Cognizant is the first IT company leveraging India on NASDAQ. In the initial days, Parent Corporation split into three major divisions: Dun & Bradstreet, AC Nielsen Consumer Products, and Cognizant Corporation. Dun & Bradstreet changed its name to Cognizant Technology solutions and began to function as Cognizant Corporation. In the year October 2013, Cognizant acquired Equinox Consulting SAS. Cognizant has 50 delivery centers worldwide with 1,78,600 employees as of march 31, 2014, it is also a member of NASDAQ 100. The company provides basically Custom Information Technology, consulting and BPO services. Cognizant functions in four sectors: Logistics, Health care, Financial Services,
53 Healthcare, Retail, Manufacturing, also includes Information, communications, entertainment, media. The company also provides a range of services in Information Technology Consulting, Operations, Process, Business, Enterprise Information Management, Application Development and systems Integration, Testing, Infrastructure services, Maintenance, Business Process Outsourcing and Knowledge Process Outsourcing 3.2.1.2. Mission and Vision Statement Mission Statement Company aims to be the number one solutions provider in each niche sector through integrity, competence, innovation and execution. Commitment to their customers, employees, licensees and shareholders is the foundation of the company mission. Vision Statement Employees are passionate, driven and committed to deliver on its promise to make a difference to their clients through professional work ethics and company operational discipline. 3.2.1.3. Services offered The Company not only provides financial services but also post-acquisition integration, project delivery services, business transformation, business and information technology, Organization relocation services, project delivery services, service launch. The Re-engineering services include Data Warehousing, Business Intelligence, Application Design, Development and Integration, ERP, customer relationship management. 3.2.1.4. Financial Services The company s financial services offer services to banking and insurance industries. The company focuses on commercial banks, retail banking, wholesale banking, credit cards, payments, investment banking, wealth management, and security services. Cognizant serve both traditional and commercial banks. The company assists casualty insurers, life insurers, insurance brokers to improve the efficiency and effectiveness of insurance operations. Cognizant mainly concentrates on policy issuing, administration, renewal, reporting, payment, maturity information, and reinsurance. 3.2.1.5. Health Services
54 Cognizant focuses on wide range of services and solutions in health care such as regulatory compliance, integrated Health Management, Claims Investigative services to prevent fraud and abuse strengthening administrative processes. Company expand its services to pharmaceutical, biotech and medical device companies, animal health and consumer health products to be more efficient and effective from an information technology and business operations. Company also helps biotechnology scientists to innovate virtually in expanding the business. 3.2.1.6. Manufacturing/Retail/Logistics Company also extends their services to manufacturing, retail and logistics business, travel, hospitality, and consumer goods. Manufacturing sector includes supply chain management, warehouse, waste management, transportation management and ERP solutions. It also serves supermarkets, department stores, specialty retailers. Travel and hospitality industry includes airlines, hotels and restaurants, online booking both in buses, trains, real estate companies. 3.2.1.7. Other Services Cognizant also serves Communication industry like cable, wireless and wire line providers, equipment vendors and software vendors. The company helps in designing, developing, testing and introducing new products and channels by improving customer service and satisfaction. It concentrates on Business Support Systems, Operations Support Systems, ERP has a huge demand. Cognizant has a huge demand in Information, media and Entertainment which includes information service providers, broadcasters, movies, music and video game companies, advertisement management, Online Media, and e-business, Digital Content Supply chain and media management. A new initiative of company has helped the media industry to sustain by Anti-piracy software s and advertising sales, studio management, billing and payments.
55 Cognizant also assist online service providers to get rid of hackers which is a major problem today. 3.2.1.8. High Technology The company offering high technology provides some of the independent software vendors or ISVs, online service providers and technology equipment manufacturers. The company assists the ISVs with their transitions to new business models (such as Software-as-a- Service, or SAS models) and facilitates their license management and sales processes. 3.2.1.9. Competitors The main competitors for Cognizant are Tata Consultancy Services, Infosys Technologies limited, Wipro, Accenture, HP, and IBM. 3.2.1.10. Achievements The company has been ranked as one of the fastest growing companies in 2010 business week 50 list of the top-performing companies, and the Forbes Fast Tech 2010 list of 25 The Company has listed in Fortune 1000, Forbes Global 2000 lists and 2010 fortune 100 fastest technology growing companies in USA. The company found the solution for Y2K problem by web page development. Cognizant helps the clients to make the operations cost-effective and to enhance productivity by working faster, cheaper and better. 3.2.2 PROFILE OF INFOSYS TECHNOLOGIES LIMITED 3.2.2.1 Origin & Growth Infosys Limited was incorporated in the year 1981 with seven people as Infosys Consultants Pvt Ltd by Mr.N.R.Narayana Murthy at Karnataka. The vision of the company is to help the clients to meet their goals through their people, services and solutions. Infosys mission is dedicated to provide the people, services and solutions to clients in order to meet their information technology challenges and business goals. In the year 1992 company became a
56 public Limited company and India s second largest software exporter and, in 1999 company was listed On NASDAQ. Ltd is a public limited and India's second largest software exporter company Infosys Ltd designs and delivers information technology enabled business solutions to their clients, Provides end-to-end business solutions that influence technology for their clients, including technical consulting, design, development, product engineering, maintenance, systems integration, package-enabled consulting and implementation and infrastructure management services. 3.2.2.2 Mission and Vision Mission Statement To achieve the company objectives in an environment of fairness, honesty, and courtesy their clients, employees, vendors and society at large." Vision "To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people." 3.2.2.3 Services Offered The company also provides software products to the banking, insurance, financial services to large, medium size banks in India and also overseas. The company outlook is to develop economies according to changing business scenario with help of accessing the talent pools in India. The Infosys Company also offers Business Process Outsourcing same as offsite customer relationship management, accounting, administration and sales order processing. The company associates with IBM, Intel, Microsoft and Oracle. 3.2.2.4 Special Economic Zone Units Infosys set up Special Economic Zone units to reduce taxes, particularly in Chandigarh 100% tax deduction for exports during the first five years, whereas 50% tax deduction for the next five years. 3.2.2.5 Partnership
57 Infosys Technologies limited have partnered with ACDI/VOCA in the agricultural sector to promote economic growth and also to develop information and communication technology in order to improve efficiencies. In 2008, the company introduced Shopping Trip 360 to help retailers and consumer packaged goods and it is a platform of real time in store shopper and shelf activity. 3.2.2.6 Operations in various countries Company started its operations not only in India but also in Sweden, In 2011, the company started on their own as Infosys Shanghai Company Ltd. Infosys established first Software Development Block at their Technopark in Kerala, another Technopark with 1800 seats capacity of Software Development Block is also under construction. In the year 2011, Infosys Technologies Ltd was changed to Infosys Ltd. In November 2011, Infosys entered in to an agreement with the company Atlas Copco AB to render the financial services such as accounting, reporting and processing of supplier invoices. By this project Infosys covered around 230 places in Atlas Copco, and by these they provides huge employment in around Czech Republic. In 2011 there was a drastic change in services of Infosys and they rendered the services to Indian companies. 3.2.2.7 Competitors The main competitors for Infosys are Cognizant, Tata Consultancy Services, Mahindra Satyam, Wipro, Accenture, HP and IBM. 3.2.2.8. Achievements The Company won excellence in corporate governance in the year 2001, 2002, and 2003. According to Reputation Institute s Global Reputation pulse 2009 Infosys was ranked among the top 50 respected companies in the world. Infosys provides huge employment opportunities in India and abroad. In 2002 Infosys started BPO services in India to render the services to the most of financial and banking industries. The company was selected as Best Outsourcing Partner covering the needs of chief information officers in the capital market firms. According to Most
58 Admired Knowledge Enterprises (MAKE) study the company was listed and Forbes Asian Fabulous 50. 3.2.3 PROFILE OF MAHAVEER INFOWAY LIMITED 3.2.3.1 Origin & Growth of Mahaveer Infoway Limited Mahaveer Infoway Limited has headquarters in Hyderabad and also has branch offices in Bangalore and Hubli. The company offers several services to their clients. The company was incorporated on May 13, 1991 as a private limited company initially the name was Mahaveer Leafin and Holdings private Limited. The Managing Director, Ashok Kumar Jain, promotes the company and he is a business professional experienced in banking, finance and business management operations. In the year 2000 January 7 th the company amends the name from Mahaveer Leafin and Holdings Limited to Mahaveer Infoway Limited. In the year 2010-11 the company has two subsidiary companies that is Mahaveer Telecom Private Limited and Mahaveer Projects Private Limited. Mahaveer Infoway Limited launched a mobile brand ZINK all over India. 3.2.3.2 Services Offered Mahaveer Infoway limited provides technical oriented solutions and render services in the field of software Development, Product and application testing, IT consulting, Networking, Testing, Distribution of Telecom products, real estate development, engineering services,. The company provides a wide range of services to different industries like insurance, banking and financial services, manufacturing, telecommunications, transportation and engineering services. The Mahaveer Infoway Limited personnel are expertise, experienced in diverse fields of IT, Infrastructure Development, distribution and training. Mahaveer Infoway Limited, headquartered in Hyderabad has 150 employees, Hubli branch which is located in Karnataka has 200 employees, having 1 Acre Campus in Aryabhatta Technology Park. The company basically provides three operations that are Information Technology, Telecom Products and Educational Services. 3.2.3.3. High-Quality services
59 Mahaveer Infoway Limited offers high-quality testing services using an offshore, on-site or a combination of offshore and on-site models. Clients not only look after the quality of the projects but also the economy of the project. As projects differ from client to client includes different specifications, technology, process and other factors. Mahaveer Infoway limited personnel, provides the software solution services to clients at a cheaper cost in less time. 3.2.3.4 Offshore projects Mahaveer Infoway Limited offshore strategy comprises of complete ownership of testing projects and also includes managerial talent. The company renders in services in numerous places like USA, India and Singapore. All the subsidiaries are interlinked with high speed network and operating environment. Mahaveer Infoway Limited company has adequate levels of system redundancy, security for the clients regarding their projects. Some projects often require working in the client premises according to their requirement; the company provides an on-site delivery model for executing a testing assignment for clients. The Project manager will test the application at the client s premises so resolve doubt regarding software and he should also report to head office every week their status. 3.2.3.5. Client satisfaction with quality output Mahaveer Infoway Limited Company has 10 years of business experience and they are experts in the field of IT. Company with updated infrastructure ensures clients quick delivery with quality output ultimately satisfies the customers. Mahaveer Infoway Limited follows this process to complete the project: Identify the business objectives, evaluate the requirements for the project, design and architect web application according to the requirement, which develop life cycle of the project with project managers, testing and identifying bugs, and closing of the project in specific time. 3.2.4 PROFILE OF MAHINDRA SATYAM LIMITED 3.2.4.1. Origin & Growth In the year 1987, Satyam Computers Services Limited (SCSL) was started as a private limited company in Andhra Pradesh and promoted by B. Rama Raju and B.Ramalinga Raju. It is one of the fourth largest I.T. service providers in India. Later in the year 1991 the company
60 became Public limited company. Satyam was awarded ISO 9001 certification in the year 1995. Satyam continuously innovates in different aspects like enterprise-processes, technology, business and Engagement models and service offerings. Satyam offers a wide range of services includes Software Development Services, Embedded Systems, Engineering Services, Systems Integration, Enterprise Resource Planning Solutions, Enterprise Application Integration. As IT services have expanded to all sectors Satyam need to customize according to the different business needs. The company renders service to different sectors like Insurance, Financial services, telecom, manufacturing, transportation, Healthcare, Bio-technology, wholesale and retail sectors. Mahindra Satyam operates in two different sectors: IT services and Business Process Outsourcing. Company has a majority stake in complex IT in February 2013 In the year 1999, Satyam Enterprise Solutions, Satyam Renaissance Consulting and Satyam Spark Solutions were merged with Satyam Computer services. 3.2.4.2. Certifications The company has adopted the latest Certifications like CMMI Level 5, PCMM, ISO 27001, BS 15000, ISO 20000, AS9100 and Six Sigma Methodologies. Satyam Enterprise Solutions, Satyam Renaissance Consulting and Satyam Spark Solutions were amalgamated with Satyam Computer Services from April. 1999. 3.2.4.3. Ventures In the year 2001, Satyam Computer Services and the US-based IdeaEDGE Ventures entered into an alliance to set up a 50:50 joint venture Satyam IdeaEDGE Technologies focus on business emerging from mobile Internet convergence. Satyam Computer Services and US-based IdeaEDGE ventures come to an agreement with 50:50 to render services to the Mobile Internet. Satyam declared to deliver the services in China in the year 2002. Satyam Computer Services announce business Continuity center in Singapore, Global solution center in Malaysia in the year 2002. Satyam and Microsoft decided to provide high quality IT services in Asia-Pacific.
61 3.2.4.4. Competitors The main competitors for Mahindra Satyam are Cognizant, Tata Consultancy Services, Infosys, Wipro, Accenture, HP and IBM. 3.2.4.5. Achievements In 2003 the company was awarded the IBM Lotus award for a knowledge management solution. Satyam Computer Services got 15 million dollars worth outsourcing contract to the World Bank. In the year 2005 Satyam acquired a London based company i:e; Citisoft Plc, another Singapore based company. Satyam was awarded the CNBC best performing stock of the year by the Institute of cost and works accountants of India. Satyam Computers render its services to Brisbane to different sectors such as local government, finance, insurance, mining. Satyam Computer acquired Nitor Global Solutions with a worth of 5.5 million dollars. Satyam Computer Services Limited has won the Asian Corporate Social Responsibility Award under the poverty alleviation. IMC RamKrishna Bajaj National Award Trophy was awarded to the company in service sector in 2001. In the year 2008, Satyam BPO has won two prestigious shared service awards from the International Quality and Productivity Council. 3.2.4.6. Take Over In the year 2009 scam was explored in Satyam Computers Limited and the shares of the company has scored a huge loss, then Tech Mahindra take over the company and named it as Mahindra Satyam. Vice-chairman and Managing Director of the Mahindra Group Anand Mahindra states, though the organization is the part of Satyam but still the group identifies commitment, purpose and proficiency of the organization. 3.2.5 PROFILE OF TATA CONSULTANCY SERVICES 3.2.5.1. Origin & Growth It is a division of Tata Group, headquartered in Mumbai having 142 offices in 42 countries is one of the India s most revered brands; the company was started in the year 1968 initially to provide management consulting services and data processing requirement. A Tata Consultancy service is the first company to get software projects in India and started its first international assignment in the year 1971. Tata Consultancy shares are listed in both National
62 Stock Exchange and Bombay Stock exchange. Tata Research Design and Development centre in Pune was the first India s IT R&D division, in the year 1981. At Trivandrum, company opened a new corporate training facility in the year 1997. Tata Consultancy Service Mission statement is to maximize the business success of the customers through the installation, maintenance and support of better-quality financial software solutions. 3.2.5.2. Mission and Vision Statement Mission Its mission is to help customers achieve their business objectives by providing innovative, best-in-class consulting, IT solutions and services and to make it a job for all stakeholders to work with them. Vision Its vision is to decouple business growth and ecological footprint from its operations to address the environment bottom-line. Their aim is to grow sustainably and help their customers achieve sustainable growth through green solutions and service offerings. 3.2.5.3. Values 1. They apply technology within financial constraints:- Employees consider technology solutions which is appropriate to clients specific business environment. They also understand clients need even in the most complex environments. They not only save the money but also work with updating technologies with superior quality. 2. Expertise and Excellence:- Employees with years of experience can meet client needs, complex technology projects over the long term as the firm adds software, hardware and network demands. 3.2.5.4. Services Offered The Company offers a wide range of services to different industries like banking, financial services, insurance, manufacturing, retail, distribution and telecom. The company acquired public sector unit CMC Ltd in the year 2001, also the company extended its services to China and Uruguay. E-Commerce was identified as an excellent opportunity and contributed a billion dollars to the company.
63 3.2.5.5. Acquisitions and Ventures Tata Consultancy Companies acquired WTI Advanced Technology Ltd and Phoenix Global Solutions (India) Ltd in the year 2004-05. The company became a public limited company in the year 2004. Tata Company attains three firms in the year 2005. The company agreed a joint venture with State Bank of India. The Tata Company offers C-Edge world class services for banking and financial sectors. Tata Infotech Limited merged three companies such as Airline Financial Support Services (India) Ltd, Aviation Software Development Consultancy India Ltd and TCS Business Transformation Solutions Ltd and created a new era in I.T. Industry. Tata Consultancy Services offers different computer enabled services to the Government of Madhya Pradesh in the year 2006. The Company started its Business Process Outsourcing services in Philippines. State Data Centre in the state of Uttar Pradesh was established by Tata Consultancy. The company acquired five year contract with du, telecom service provider in the United Arab Emirates in the February 2011. Tata Consultancy Services and Singapore Management University established TCS-SMU icity lab in order to create a research facility to expand IT standards worldwide. Tata Consultancy Services signed a contract with Europcar, in the year 2012 as company was satisfied with TCS and gave another agreement in French. Company spent a total of five percent of their revenues to Research and Development. 3.2.5.6. Competitors The competitors of Tata Consultancy Services are Cognizant, Wipro, Infosys, and Mahindra Satyam etc. 3.2.5.7. Customized Solutions TCS offers customized solutions according to market changes in order to improve profit margins and reduce risk. The Mission of the company is to provide innovative, high standards, cost-effective I.T. Solution and services to the customers. 3.2.5.8. TCS Integrated Quality Management System (IQMS) It integrates processes, people and technology maturity through various established frameworks and practices, including IEEE, ISO 9001: 2000, CMMi, SW-CMM, P-CMM and Six-Sigma.
64 3.2.5.9. TCS strived for effective e-governance in India TCS has identified numerous opportunities for improvement in e-governance in India and provided suggestions to help the government of India for effective and efficient e- Governance in the country 3.2.5.10. Some of the Indian e-governance projects are 1. Project Akshaya:- Information Technology dissemination project in Kerala providing technology access to the entire state by setting up IT centres within 2-3 Km of every household. 2. AP Online:- It provides multiple services for citizens in AP, anytime anywhere. It has generated employment for over 2,000 people, with over 1,300 kiosks in operation. The advantages are convenience, lower costs and transparency. 3. e-choupal:- It links farmers to global markets. This is largest IT based program in rural India and has developed Indian farmers into progressive knowledge-seeking net-citizens. 3.2.6. PROFILE OF WIPRO LIMITED 3.2.6.1. Origin & Growth In the year 1945, Wipro Ltd was started by Azim H Premji. He started the company with the edible oil manufacturer and later enters to fast moving consumer goods and provides IT solutions, services and products. Wipro s five manufacturing and development facilities have secured ISO 9001 certification in the year 1994-95. Wipro s headquarters is located at Bangalore and it is the first software technology in India, which got ISO: 14001 certification for implementing Environmental Management. 3.2.6.2. Services Offered Wipro provides a wide range of IT services like Business Process Outsourcing, systems integration, Information Systems Outsourcing, IT enabled services, Software Application Development and Maintenance, Research and Development services. The company renders services not only to local companies, but also globally. The company also manufactures consumer goods, furniture, Baby products.
65 3.2.6.3. Certifications PCMM Level 5 and SEI CMM Level five certified IT services were provided by the company which is the first IT Company globally. The company renders services to America, Europe, Middle East and Asia Pacific with innovative services and excellences in process, world class quality. 3.2.6.4. Achievements The Banker Technology Award was won by the Wipro technologies in the year 2004 by Financial Times. The company acquired Quantech Global Services, a US based company with the investment of 3 million dollars during 2006. Wipro Ltd purchased mpower Software Services with a development center in Chennai. The Company acquired an Austrian based company, New Logic Technologies AG, with the investment of 26 Euro million. In the years 2004, 2005, and 2006 Wipro received BEST award from American society for training & development (ASTD). 3.2.6.5. Acquisitions and Agreements In the year 2007 company acquired both CMango a US based firm and CMango India based firm with investment of 20 million dollars. Company purchased with 1022 million from North-West Switchgear Ltd in consumer care and lighting business. The Hydrauto Group AB was acquired by Wipro in the infrastructure engineering business with 31 million dollars. Wipro Limited with a joint venture of Motorola formed WMNESTSERV Ltd to provide world-class services particularly to telecom operators. 3.2.6.6. High Quality Technology The Company and Oracle Corporation introduced a solution which is a Process Integration Pack for a high technology. In order to provide global Legal Process Outsourcing for Microsoft Intellectual Property, the company joined with Microsoft Corporation. 3.2.6.7. Hospitability Management Services In the year 2010, Wipro launched Hospitability Management solutions at HITEC city. The company signed five year partnership with Central Bank of India in the year 2010 having 24 hour customer care services with different applications. Wipro Limited acquired Yardley Limited in the year 2010.
66 3.2.6.8. Competitors The competitors of Wipro are Cognizant, Tata Consultancy Services, Infosys, and Mahindra Satyam etc. 3.2.6.9. Enterprise Network Operation center Wipro provides a wide range of services including network design and build, integration with existing IT applications and managed services. In addition, Wipro will also build an Enterprise Network Operation Center to manage the operations of Vodafone Essar's enterprise customers. In January 2011, the company and Callidus Software Inc entered into a partnership to drive sales performance management across organizations in the Asia-Pacific region.