Dear Friends, this an excellent SWOT done by the team at Economic times for Infosys, TCS, HCL, Wipro, Cognizant. Complete credit goes to them. I didnt want any of my readers to miss this article so i am directly copy pasting it here. Please take out some time to go through it.
Infosys Technologies SWOT
Strength: Early positioning as high end differentiated player thanks to Nandan Nilekani and NR Narayana Murthy, investors and customers prefer the company for its established processes and predictability.
Weakness: Lagging peers in making strategic, ‘game-changing’ acquisitions, consulting business has not delivered the results, losing price premiums, lost its No.2 position in the US market to Cognizant last year.
Opportunity: Best positioned to replicate the Accenture model from offshore, a game-changing acquisition in a new geography could help the company raise its profile.
Threat: Ongoing visa abuse case and federal investigations in the US could affect brand and business, management transition from founders to professionals, rival Cognizant could overtake the No. 2 position.
Tata Consultancy Services SWOT
Strength: Ability to win and execute large, billion-dollar outsourcing contracts, increasingly viewed by customers in the same league as IBM and HP.
Weakness: Made progress in commoditised services, but still lags some peers and multinational rivals in high-end consulting offerings.
Opportunity: Best positioned among all Indian vendors to disrupt the global league of IBM-HP-Accenture.
Threat: People-led linear growth means Cognizant can beat it, and there are no visible leaders beyond N Chandrasekaran. That could pose a big challenge.
HCL Technologies SWOT
Strength: Shiv Nadar made it aggressive. Vineet Nayar’s deal-making capabilities has brought in incremental business higher than rivals. Customers like Boeing and Deutsche continue to give more business, Axon acquisition considered a silver bullet.
Weakness: Overly aggressive acquisition brings risks of additional staff in high-cost geographies. Profit margin lowest among all India-based vendors, back-office business still in transition.
Opportunity: Sacrificing margins should help gain more business. Best positioned to rival TCS in terms of scale.
Threat: High-risk contracts could affect cash flow and dent profit. Post-Nayar leadership issue can be a tricky to solve.
Strength: Billionaire-founder Azim Premji’s early alliances with global leaders like Jack Welch helped the company establish its credibility, among the most diversified IT conglomerates with businesses ranging from soaps to hydraulic pumps and embedded software.
Opportunity: New CEO TK Kurien’s strategy to create a leaner, sharper organisation could result in more profits and wallet share of large customers, shift from pure tech positioning to a more broad-based vendor focussed on solving business problems.
Threat: Life after Premji continues to be a worry, too much focus on cost reduction could come at cost of long-term strategic direction.
Strength: Fastest growing in the business of outsourcing, US-centric model helps in positioning, high wallet share of fewer large customers ensures growth even during crisis, blends IBM’s depth with Accenture’s front-ending capabilities in its model.
Weakness: Nearly 75% of business from the US could turn risky, a laggard in BPO business, also lags peers in infrastructure management business.
Opportunity: At this pace, and having overtaken Wipro last year, the company is already setting sights on Infosys’ position; TCS could be next, growing Europe business to mitigate US risks.
Threat: Pace of growth could cause fatigue among leaders, over-dependency on US could affect prospects during recession, will make for a good acquisition target for an IBM or Accenture in the coming years.
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