TCS VS IGATE FOR OPERATION MANAGEMENT
Submitted By:
Name –Ishan Kelvalkar
1.Company Introduction:Company name:iGate Limited Business Strategy: The corporate strategies of iGATE are offering integrated IT services and divesting the legacy IT staffing business and possibly making acquisitions in the domain expertise for financial services businesses. The business strategy is focused differentiation based on the focal points of testing, infrastructure management and enterprise solutions. The competitive tactic is avoiding head-on competition with the formidable larger players in the industry by carving out a niche. The business definition is serving large customers and staying away from sub-contracting work.
IGATE adopts a differentiation business model based on an integrated technology and operations model which it calls as the iTOPS models. This is advancement over the prevalent model in the ITES industry based on low-cost arbitrage model. Tops is based on transactionbased pricing for services and supporting the clients by providing the platform, processes and services.
Tata Consultancy Services. Business Strategy: In this quarter, TCS posted robust operating metrics: Q1 revenues grew to Rs 14,869 crore ($2.73 billion) while profits after tax were at Rs 3,281 crore ($604 million). From a segment perspective, it is encouraging to see secular growth across industries and broad-based growth across the markets we operate in as customers leverage our portfolio of services. TCS continue to operate in an uncertain environment, with each market or region facing its own peculiar challenges on economic, social or political grounds. The key to our success in this everchanging environment is to remain close to the customer and stay very relevant to their business needs. TCS also need to execute in a flawless manner to help clients achieve their business goals. And TCS must continue to invest in enriching domain knowledge in the context of today’s emerging technologies.
2. Operation Strategy and Focus:
IGATE The strategic evaluation and control has both the elements of strategic as well as operational controls. The functional and operational implementation is aimed at achieving four sets of objectives: (a) Shifting from small customers to large customer (Fortune 1000 companies) . (b) Shifting away from stocking to project-consulting assignments (c) Working directly with clients rather than with system integrators (d) Moving from a local to international markets Some illustrations of the performance indicators are some objectives these objectives are: 1. On-shore versus off-shore mix of business revenues: In 2004, this ratio was 55:45 and in 2007, it has improved to 2773, indicating a much higher revenue generation from offshore business. 2. Billing rates: Revenue charged from clients on assignments. With project consulting assignments from off-shore clients, where the revenues are typically higher, with lower costs and higher productivity in India, the realizations from billing have to be higher. The industry norms for ITES are US$18-25 per hour for off-shore and US$ 55-65 per hour for on-shore assignments. 3. The number of large clients from Fortune 1000 companies: Presently, iGATE has nearly half of its more than 100 clients from Fortune 1000 companies, of which the top IC account for 70 per cent of its business. 4. Controlling employee costs: This is an area where concerted effort is required from the HR and finance functions. Hiring less experienced employees lowers the compensation bill. In the IT and ITES industry, attracting and retaining well-qualified and experienced employees is a critical success factor. The performance indicator for this objective is the cost per employee. 5. Human resource metrics such as the hiring and attrition rates: In the IT and ITES industry, the human resource metrics such as hiring and attrition rates are critical indicators. E.g. of Products Enhancing the Operations: Smart organizations are turning to Cloud Computing to be adaptable to changing business conditions, to improve time-to-market and to gain operational and cost efficiencies. At the core of its dedicated Cloud Services Practice that delivers end-to-end Cloud services is the Cloud Lab.
IGATE’s Social Analytics CoE (Center of Excellence) is a focused group of solution architects building a knowledge base and expertise in areas that influence Social analytics. IGATE provides consulting services for defining a strategy, architectural blue print and roadmap for social analytics adoption that best fit an organization’s needs.
Tata Consultancy Services. 1) As technology changes with speed, TCS is increasing efforts to invest ahead of the curve and build capabilities in using new technologies across industries. This will enable TCS to continue to sustain growth in the future. 2) Addition of 13,831 Employees to sustain the growth and demand from various clients. 3) High Utilization rates maintained at 81.3% (excluding trainees). 4) The attrition rate (LTM) was 12.0 per cent. 5) TCS has been able to effectively increase retention rate in the first quarter to over 88% and increase utilization rates further. The on-boarding of current year’s trainees has begun. 6) Delivering Next-gen insights using Big Data frameworks for a global airline, a US-based bank and a global market research firm. 7) Setting up leading edge distributed data warehouse for a hi-tech firm using Big Data technologies. 8) With its strong hold in UK, USA, Asia. TCS wants to further increase its services to Latin America.
1) Development Chart:
Differences Between IGATE and TCS:1) The strategy of TCS is to grow by attracting new customers across the globe while Igate focused to grow their strength by acquisitions like they recently Patni Limited. 2) The TCS is far larger than IGATE limited in terms of revenue, employee strength and infrastructure.
Similarities between IGATE and TCS: 3) Both are looking to reduce the employee attrition rate. 4) Main focus in the coming years is on increasing technological infrastructures and new innovations in Cloud computing to reduce cost.
doc_609705590.docx
Submitted By:
Name –Ishan Kelvalkar
1.Company Introduction:Company name:iGate Limited Business Strategy: The corporate strategies of iGATE are offering integrated IT services and divesting the legacy IT staffing business and possibly making acquisitions in the domain expertise for financial services businesses. The business strategy is focused differentiation based on the focal points of testing, infrastructure management and enterprise solutions. The competitive tactic is avoiding head-on competition with the formidable larger players in the industry by carving out a niche. The business definition is serving large customers and staying away from sub-contracting work.
IGATE adopts a differentiation business model based on an integrated technology and operations model which it calls as the iTOPS models. This is advancement over the prevalent model in the ITES industry based on low-cost arbitrage model. Tops is based on transactionbased pricing for services and supporting the clients by providing the platform, processes and services.
Tata Consultancy Services. Business Strategy: In this quarter, TCS posted robust operating metrics: Q1 revenues grew to Rs 14,869 crore ($2.73 billion) while profits after tax were at Rs 3,281 crore ($604 million). From a segment perspective, it is encouraging to see secular growth across industries and broad-based growth across the markets we operate in as customers leverage our portfolio of services. TCS continue to operate in an uncertain environment, with each market or region facing its own peculiar challenges on economic, social or political grounds. The key to our success in this everchanging environment is to remain close to the customer and stay very relevant to their business needs. TCS also need to execute in a flawless manner to help clients achieve their business goals. And TCS must continue to invest in enriching domain knowledge in the context of today’s emerging technologies.
2. Operation Strategy and Focus:
IGATE The strategic evaluation and control has both the elements of strategic as well as operational controls. The functional and operational implementation is aimed at achieving four sets of objectives: (a) Shifting from small customers to large customer (Fortune 1000 companies) . (b) Shifting away from stocking to project-consulting assignments (c) Working directly with clients rather than with system integrators (d) Moving from a local to international markets Some illustrations of the performance indicators are some objectives these objectives are: 1. On-shore versus off-shore mix of business revenues: In 2004, this ratio was 55:45 and in 2007, it has improved to 2773, indicating a much higher revenue generation from offshore business. 2. Billing rates: Revenue charged from clients on assignments. With project consulting assignments from off-shore clients, where the revenues are typically higher, with lower costs and higher productivity in India, the realizations from billing have to be higher. The industry norms for ITES are US$18-25 per hour for off-shore and US$ 55-65 per hour for on-shore assignments. 3. The number of large clients from Fortune 1000 companies: Presently, iGATE has nearly half of its more than 100 clients from Fortune 1000 companies, of which the top IC account for 70 per cent of its business. 4. Controlling employee costs: This is an area where concerted effort is required from the HR and finance functions. Hiring less experienced employees lowers the compensation bill. In the IT and ITES industry, attracting and retaining well-qualified and experienced employees is a critical success factor. The performance indicator for this objective is the cost per employee. 5. Human resource metrics such as the hiring and attrition rates: In the IT and ITES industry, the human resource metrics such as hiring and attrition rates are critical indicators. E.g. of Products Enhancing the Operations: Smart organizations are turning to Cloud Computing to be adaptable to changing business conditions, to improve time-to-market and to gain operational and cost efficiencies. At the core of its dedicated Cloud Services Practice that delivers end-to-end Cloud services is the Cloud Lab.
IGATE’s Social Analytics CoE (Center of Excellence) is a focused group of solution architects building a knowledge base and expertise in areas that influence Social analytics. IGATE provides consulting services for defining a strategy, architectural blue print and roadmap for social analytics adoption that best fit an organization’s needs.
Tata Consultancy Services. 1) As technology changes with speed, TCS is increasing efforts to invest ahead of the curve and build capabilities in using new technologies across industries. This will enable TCS to continue to sustain growth in the future. 2) Addition of 13,831 Employees to sustain the growth and demand from various clients. 3) High Utilization rates maintained at 81.3% (excluding trainees). 4) The attrition rate (LTM) was 12.0 per cent. 5) TCS has been able to effectively increase retention rate in the first quarter to over 88% and increase utilization rates further. The on-boarding of current year’s trainees has begun. 6) Delivering Next-gen insights using Big Data frameworks for a global airline, a US-based bank and a global market research firm. 7) Setting up leading edge distributed data warehouse for a hi-tech firm using Big Data technologies. 8) With its strong hold in UK, USA, Asia. TCS wants to further increase its services to Latin America.
1) Development Chart:
Differences Between IGATE and TCS:1) The strategy of TCS is to grow by attracting new customers across the globe while Igate focused to grow their strength by acquisitions like they recently Patni Limited. 2) The TCS is far larger than IGATE limited in terms of revenue, employee strength and infrastructure.
Similarities between IGATE and TCS: 3) Both are looking to reduce the employee attrition rate. 4) Main focus in the coming years is on increasing technological infrastructures and new innovations in Cloud computing to reduce cost.
doc_609705590.docx