Description
The PPT highlights about SCM rating in IT services Industry particularly with respect to Tata Consultancy Services (TCS).
SCM RATING – IT Services
In Rs Crores
2004-2005
8,051.10
2005-2006
11,230.50
2006-2007
14,939.97
2007-2008
18,533.72
2008-2009
22,401.92
Sales Closing Assets
3,441.79
5,644.83
8,109.73
11,023.06
13,486.62
Opening Asset
Net Asset ATR
1,822.08
3,441.79
5,644.83
8,109.73
11,023.06
2,631.94
4,543.31
6,877.28
9,566.40
12,254.84
3.06
2.47
2.17
1.94
1.83
3.5 3 2.5 ATR 2 1.5
1
0.5 0 2004-2005 2005-2006 2006-2007 Time Periods 2007-2008 2008-2009
In Rs Crores Opening Creditor Closing Creditor Avg. Creditor
2004-2005
223 445.68 334.34
2005-2006
445.68 737.32 591.50
2006-2007
737.32 818.34 777.83
2007-2008
818.34 1,239.00 1,028.67
2008-2009
1,239.00 1,887.94 1,563.47
CTR
Opening Debtor
15.16
1,023.00
19.22
1,463.45
19.00
2,326.63
20.26
2,799.80
25.47
3,747.01
Closing Debtor
Avg. Debtor DTR CTCCT
1,463.45
1243.225 56.36 41.20
2,326.63
1895.04 61.59 42.37
2,799.80
2563.215 62.62 43.62
3,747.01
3273.405 64.46 44.21
3,717.73
3732.37 60.81 35.34
50 45 40 Cycle Time in Days 35 30 25 20 15 10 5
0
2004-2005 2005-2006 2006-2007 Time Periods 2007-2008 2008-2009
Company TCS
Infosys Wipro Cognizant
ATR 1.83
1.29 1.4 1.33
CTCCT 35.34
38.14 40.82 37.56
Industry Avg.
1.4625
37.965
Rating
TCS
ATR
3.13
CTCCT
2.68
SCM=(ATR+CTCCT)
5.81
TCS has clearly outpaced the IT industry average in this growing sector of extremely high competition ? TCS in 2008-09 significantly reduced its CTCCT by negotiating with its creditors and squeezing its credit policy with clients ? In case of financial year 2008-09 amidst global recession and BFSI sector contributing 43% of its revenue, there has been significant reduction in ATR due to less volume growth ? TCS over the past 3 years has been recruiting large no. of people (1,26,000 till Mar 2009) and adding new offices across the Globe by investing in Fixed assets in terms of office space and other office infrastructure, thus increasing its Fixed Asset Base
?
?
? ?
? ? ?
ATR can be improved by increasing productivity in terms of reduced bench strength of its employees Adding new clients in its list and also concentrating in Latin America, APAC, Middle-East and African markets The focus of TCS has changed to new sectors like Healthcare, high-tech, energy utilities and transportation, etc. contributing 21% in its Sales Growth Sales growth can be guided by undertaking domestic EGovernance IT-solutions Better utilization of its assets and pay-offs in the long run where by ATR will increase CTCCT can further be reduced with better credit terms with its clients and negotiated service terms
The Independent and dependent parameters for developing the supply chain of TCS: ? Network Design
Development of new markets and onshore-offshore model of IT-outsourcing with differential time zone of application development
?
Information System Design
SLA based managed services-An integrated and interconnected delivery model, which allows it to provide distributed remote services across the world. It offers a single service delivery platform and dashboard, irrespective of business geography and delivery locations.
?
Order Processing System (CRM)
? Contact Center Analytics
For increasing customer satisfaction to providing insights ,learning and forecasting ? Intelligent Inbound Customer Marketing Real time customer profiling and business rule evaluation ? Integrated Customer Data Management (ICDM) provides a single unified customer view, near realtime customer information, and efficient data quality maintenance and data synchronization
Provide reliable, scalable and cost effective delivery of services and solutions. ? The Global Network Delivery Model™ consists of 3 integrated components:
?
? Global Workforce
? Highly effective and scalable talent management - recruiting, staffing, training and retention
? Integrated Processes
? CMMI Level 5 quality processes ? World-class security procedures ? Project Management processes and tools (iQMS, etc.)
? Multi-Tiered Infrastructure
? Multi-continent and interconnected global development center network (local, regional, global model) to allow for better risk management and follow-the-sun coverage ? State of the art and redundant telecommunications network ? Global collaboration tools
?
?
TCS believes excellence in software and services delivery ? understands a customer’s business, ? the nature of that customer’s business challenges, ? the customer’s technology infrastructure, and ? how to identify and implement global best practices to deliver the desired business outcome on time, within budget, and with industry-leading quality. Schedule, quality & cost are the Three Pillars of Delivery Excellence.
THANK
YOU
doc_787339572.pptx
The PPT highlights about SCM rating in IT services Industry particularly with respect to Tata Consultancy Services (TCS).
SCM RATING – IT Services
In Rs Crores
2004-2005
8,051.10
2005-2006
11,230.50
2006-2007
14,939.97
2007-2008
18,533.72
2008-2009
22,401.92
Sales Closing Assets
3,441.79
5,644.83
8,109.73
11,023.06
13,486.62
Opening Asset
Net Asset ATR
1,822.08
3,441.79
5,644.83
8,109.73
11,023.06
2,631.94
4,543.31
6,877.28
9,566.40
12,254.84
3.06
2.47
2.17
1.94
1.83
3.5 3 2.5 ATR 2 1.5
1
0.5 0 2004-2005 2005-2006 2006-2007 Time Periods 2007-2008 2008-2009
In Rs Crores Opening Creditor Closing Creditor Avg. Creditor
2004-2005
223 445.68 334.34
2005-2006
445.68 737.32 591.50
2006-2007
737.32 818.34 777.83
2007-2008
818.34 1,239.00 1,028.67
2008-2009
1,239.00 1,887.94 1,563.47
CTR
Opening Debtor
15.16
1,023.00
19.22
1,463.45
19.00
2,326.63
20.26
2,799.80
25.47
3,747.01
Closing Debtor
Avg. Debtor DTR CTCCT
1,463.45
1243.225 56.36 41.20
2,326.63
1895.04 61.59 42.37
2,799.80
2563.215 62.62 43.62
3,747.01
3273.405 64.46 44.21
3,717.73
3732.37 60.81 35.34
50 45 40 Cycle Time in Days 35 30 25 20 15 10 5
0
2004-2005 2005-2006 2006-2007 Time Periods 2007-2008 2008-2009
Company TCS
Infosys Wipro Cognizant
ATR 1.83
1.29 1.4 1.33
CTCCT 35.34
38.14 40.82 37.56
Industry Avg.
1.4625
37.965
Rating
TCS
ATR
3.13
CTCCT
2.68
SCM=(ATR+CTCCT)
5.81
TCS has clearly outpaced the IT industry average in this growing sector of extremely high competition ? TCS in 2008-09 significantly reduced its CTCCT by negotiating with its creditors and squeezing its credit policy with clients ? In case of financial year 2008-09 amidst global recession and BFSI sector contributing 43% of its revenue, there has been significant reduction in ATR due to less volume growth ? TCS over the past 3 years has been recruiting large no. of people (1,26,000 till Mar 2009) and adding new offices across the Globe by investing in Fixed assets in terms of office space and other office infrastructure, thus increasing its Fixed Asset Base
?
?
? ?
? ? ?
ATR can be improved by increasing productivity in terms of reduced bench strength of its employees Adding new clients in its list and also concentrating in Latin America, APAC, Middle-East and African markets The focus of TCS has changed to new sectors like Healthcare, high-tech, energy utilities and transportation, etc. contributing 21% in its Sales Growth Sales growth can be guided by undertaking domestic EGovernance IT-solutions Better utilization of its assets and pay-offs in the long run where by ATR will increase CTCCT can further be reduced with better credit terms with its clients and negotiated service terms
The Independent and dependent parameters for developing the supply chain of TCS: ? Network Design
Development of new markets and onshore-offshore model of IT-outsourcing with differential time zone of application development
?
Information System Design
SLA based managed services-An integrated and interconnected delivery model, which allows it to provide distributed remote services across the world. It offers a single service delivery platform and dashboard, irrespective of business geography and delivery locations.
?
Order Processing System (CRM)
? Contact Center Analytics
For increasing customer satisfaction to providing insights ,learning and forecasting ? Intelligent Inbound Customer Marketing Real time customer profiling and business rule evaluation ? Integrated Customer Data Management (ICDM) provides a single unified customer view, near realtime customer information, and efficient data quality maintenance and data synchronization
Provide reliable, scalable and cost effective delivery of services and solutions. ? The Global Network Delivery Model™ consists of 3 integrated components:
?
? Global Workforce
? Highly effective and scalable talent management - recruiting, staffing, training and retention
? Integrated Processes
? CMMI Level 5 quality processes ? World-class security procedures ? Project Management processes and tools (iQMS, etc.)
? Multi-Tiered Infrastructure
? Multi-continent and interconnected global development center network (local, regional, global model) to allow for better risk management and follow-the-sun coverage ? State of the art and redundant telecommunications network ? Global collaboration tools
?
?
TCS believes excellence in software and services delivery ? understands a customer’s business, ? the nature of that customer’s business challenges, ? the customer’s technology infrastructure, and ? how to identify and implement global best practices to deliver the desired business outcome on time, within budget, and with industry-leading quality. Schedule, quality & cost are the Three Pillars of Delivery Excellence.
THANK
YOU
doc_787339572.pptx