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IT Sector

The IT & ITes sector includes IT services, engineering design and R&D services, ITES (IT-

enabled services) or BPO and hardware.

Today IT and ITeS sectors lead the economic growth in terms of employment, export promotion,revenue generation and standards of living. As per NASSCOM estimates, IT/ITeS sector

(excluding hardware) revenues are estimated at USD 87.6 billion in FY 2011-12; and the

industry is expected to grow by 19 per cent during FY 2012-13.

The IT/ITeS sector has led to employment opportunities, both direct and indirect, of nearly 2.8

million and around 8.9 million respectively. This growth is expected to increase to more than 14

million (direct and indirect) by 2015 and to around 30 million by 2030.

The market size of the industry is expected to rise to USD 225 billion by 2020 considering

India's competitive position, growing demand for exports, Government policy support, and

increasing global footprint.

IT/ITeS industry has led India's economic growth and this sector's contribution to the national

GDP has risen from 1.2 per cent in 1997-98 to an estimated 7.5 per cent in 2011-12.

IT/ITES industries are highly localized and clustered in seven cities as of today. These are:

Bangalore, Hyderabad, Chennai, Gurgaon/Noida/New Delhi, Kolkata, Mumbai and Pune.

Infrastructure limits and scarcity of land has recently led to expansion to newer places like

Ahmedabad, Bhubaneshwar, Chandigarh, Coimbatore, Jaipur, Kochi, Madurai, Mangalore,

Mysore and Trivandrum.

Introduction to the terms:

Information Technology (IT) is defined as the design, development, implementation and

management of computer-based information systems, particularly software applications and

computer hardware. Today, it has grown to cover most aspects of computing and technology.

The largest firms globally include IBM, HP, Dell and Microsoft.

The Information Technology-Enabled Services (ITES) industry provides services that are

delivered over telecom or data network to a range of external business areas. Examples of such

business process outsourcing (BPO) include customer service, web-content development, back

office management and network consultancy etc.

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Factors leading to growth in the IT/ITes sector are:

Low operating costs and tax advantage. Favorable government policies. Technically qualified personnel easily available in the country. Rapid adoption of IT technologies in major sectors as Telecom, Manufacturing and BFSI. Strong growth in export demand from new verticals and non-traditional sectors as public

sector, media and utilities.

Use of new and emerging technologies such as cloud computing. SEZ as growth drivers; as more of SEZs are now being set up in Tier II cities and about

43 new tier II/III cities are emerging as IT delivery locations.

All these factors have given IT/ITES industry in India a strong competitive position withhigh market share.

Employment trends

As per the Economic Survey 2011-12, the IT/ITeS industries has added 7.96 lakh jobs in one

year, in the period ending September 2011. According to NASSCOM, employee base in the rural

areas is expected to increase by over 10 times by 2013-14, compared to 5000 in 2009-10.

According to a customer poll conducted by Booz and Co, India is the most preferred destination

for engineering off shoring, which are encouraging foreign companies to offshore complete

product responsibility to Indian ITeS companies.

Hyderabad is fast becoming the IT/ITes hub of India with new players hankering to get a

foothold here, and existing players continuing to hire aggressively. Large companies such asInfosys, TCS, Genpact, Deloitte, Facebook, Bank of America, Thomson Reuters, Amazon,

Google, Cognizant, Franklin Templeton among others, are growing their presence in the state.

According to Andhra Pradesh Government's estimates, the total IT/ITeS sector hiring for 2012-

13 could be at about 50,000 professionals.

Internet trends

More recently, online retailing, cloud computing and e-commerce are leading to rapid growth in

the IT industry. Online shopping is fast gaining popularity with the emergence of internet

retailing and e-commerce.

According to the Internet and Mobile Association of India (IAMAI) the number of Internet users

in the country is more than 121 million, out of which 17 million are online shoppers. Increasing

internet penetration and affordability for personal computers has led to this rapid numbers, and

these are expected to triple by 2015.

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According to IAMAI, online sales of branded apparel almost doubled in volume to 4.99 million

pieces during April 2012, as against 2.54 million in the same month a year ago. Also, E-ticketing

continued to grow with irctc.com recording 5.56 million bookings in April, 2012, as compared to

2.26 million bookings in April 2011.

Government Initiatives

In the twelfth Five Year Plan (2012-17), the Department of Information Technology proposes to

strengthen and extend the existing core infrastructure projects to provide more horizontal

connectivity, build redundancy connectivity, undertake energy audits of State Data Centers

(SDCs) etc. The core infrastructure including fiber optic based connectivity will be leveraged

and additional 150,000 Common Service Centers (CSCs) will be setup to create the right

Governance and service delivery ecosystem at the Panchayats

Investments

Indian IT's core competencies and strengths have placed it on the international canvas, attractinginvestments from major countries.

Between April 2000 and June 2013, the computer software and hardware sector attracted

cumulative foreign direct investment (FDI) of Rs 53,757.60 crore (US$ 7.97 billion), according

to data released by the Department of Industrial Policy and Promotion (DIPP).

More recently, online retailing, cloud computing and e-commerce are the major driving forces

behind the rapidly increasing growth in the IT industry. Online shopping has increased with the

emergence of internet retailing and e-commerce.

Some of the major investments in Indian IT and ITeS sector:

Baring Private Equity Partners Asia plans to buy IT services firm Hex aware Technologies in a

deal estimated at about US$ 400 million

Cognizant has been selected by the Saudi Electricity Company (SEC) to develop a

comprehensive billing and revenue management solution based on SAP utilities enterprise

software to meet the functional, technical, and operational requirements of SEC's rapid growth

Prisma Global has acquired majority stake in German technology venture Prisma Gmbh forabout Rs 27 crore (US$ 4.00 million). The company will now own the Intellectual Property (IP)

of technologies developed by the German firm

Wipro Ltd have secured a large IT outsourcing contract worth US$ 500 million from the US-

based financial services company Citigroup. Wipro will be responsible for application

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development and maintenance, as well as providing infrastructure management services, for

Citi's global operations

Tech Mahindra has signed a five-year agreement with UBS Fund Services (Luxembourg) (UBS

FSL) for its new platform, Tech Mahindra Managed Data Services (MDS), designed to support

asset managers, wealth managers, investment banks, custodians and administrators. Thecompanys Brazilian subsidiary Complex IT has also signed two deals to deliver enterprise

solutions for oil and gas, and banking sect

Working area

MIS professional

A management information systems (MIS) professional collects, analyses data and provides

information in formats that can be used by different departments of an organization accordingly.

What's it about?

A management information systems professional is someone who collects data from multiple

sources in an organization, compiles it, organizes it in useable formats, and then does the

calculations as per departmental needs.

Clock work

9 am: Compile all figures (sales/ HR/ marketing), depending on my domain

10 am: Sort out and arrange these

11 am: Do the calculations to compute monthly, weekly or quarterly figures

3 pm: Meet with the management to give presentation

6pm: Study the figures to look for eye-catching trends reflected by the figures.

The payoff

At an entry level, one can start anywhere between R3 to R4 lakh per annum. If you are a

qualified CA or MBA from an institute of repute, you can earn about R6 lakh to R8 lakh per

annum. With experience, your salary can rise depending on the company you work for.

Skills

You need sound analytical skills

You have to have a good head for numbers

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You have to master the ability to stay calm and collected under pressure. Sometimes the work

seems unending and no sooner have you finished pending tasks you discover more have piled up

You have to be well versed with computer tools such as MS Office, ERP software (such as SAP-

BI) and excel in power point presentations

Pros & cons

Work is satisfying because you directly contribute to the companys decision-making process.

Life gets hectic in MIS. Work pressure can drain you at times.

You remain in constant touch with the top management, a privilege not everyone gets in the

company

Top 10 Companies:

TCS:Tata Consultancy Services: Is a software services and consulting company headquartered inMumbai. TCS is the largest provider of information technology and business process outsourcingservices in Asia.Revenue: $6.3 billion

The Indian software industry is set to keep up its growth rate despite the slowdown in theeconomy. The National Association of Software and Services Companies (Nasscom) has forecasta strong outlook for FY08-09 strong with software and services revenue seen growing by 21-24per cent. The software and services exports are set to hit the $50 billion-mark.

The software and services exports segment grew by 29 per cent (in USD) to register revenues of$40.4 billion in FY07-08, up from $31.4 billion in FY06-07. The domestic segment grew by 26per cent (in INR) to register revenues of $ 11.6 billion in FY07-08. According to the latestNasscom rankings, Tata Consultancy Services Ltd., Infosys Technologies Ltd. and WiproTechnologies Ltd are the top 3 revenue generators in India. Check out the top ten players in theIndian IT industry.

Founded in 1968, TCS is one of India's largest corporate houses. It is also India's largest ITemployer with a staff strength of 111,000 employees.

The company began as a division of the Tata Group, called the Tata Computer Centre. Its main

business was to offer computer services to other group companies. Soon the company was spunoff as Tata Consultancy Services after it realized the huge potential of the booming IT services.

The company posted a consolidated net profit of Rs 1,290.61 crore (Rs 12.90 billion) for the firstquarter ended June 30, 2008, an increase of 7.3 per cent compared to the year-ago period.

Its annual sales worldwide stands at $5.7 billion for the fiscal year ending March 2008. Duringthe year 2007-08,

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TCS' consolidated revenues grew by 22 per cent to Rs 22,863 crore ($5.7 billion). S. Ramadorai,is the chief executive officer and managing director of TCS.

TCS is IDC-Dataquest IT best employer in IT services in 2007. TCS also topped Data Quest DQTop 20 list of IT service providers in 2007.

2) Wipro:A giant information technology services corporation headquartered in Bangalore. It has interestsvarying from information technology, consumer care, lighting, engineering and healthcarebusinessesRevenues: $4.3 bnBPO revenues: $465 mn

What started off as a hydrogenated cooking fat company, Wipro is today is a $5 billion revenuegenerating IT, BPO and R&D services organization with presence in over 50 countries.

Premji started Wipro with the 'idea of building an organization which was deeply committed tovalues, in the firm belief that success in business would be its inevitable, eventual outcome'. Thecompany has over 72,000 employees.

Wipro's revenues grew by 33 per cent to Rs 19,957 crore (Rs 200 billion) for the year endedMarch 31, 2008. The net profit grew by 12 per cent to Rs. 3,283 crore (Rs. 32.83 billion). Therevenue of the combined IT businesses was $4.3 billion with 43 per cent YoY growth.

Wipro was the only Indian company to be ranked among the top 10 global outsourcing providersin IAOP's 2006 Global Outsourcing 100 listing. Wipro has also won the International Institute

for Software Testing's Software Testing Best Practice Award.

3) Infosys:Infosys Technologies Limited is an information technology Services Company headquartered inBangalore. Infosys is one of the largest IT companies in India with 113,796 employees(including subsidiaries) as of 2010.Revenues: $4.8 bnBPO revenues: $294 mn

Infosys Technologies Ltd was started in 1981 by seven people with $250. Today, the company

boasts of revenues of over $ 4 billion and 94,379 employees.

Under the leadership of N R Narayana Murthy, the company has become a global brand. Thecompany is now headed by Kris Gopalakrishnan. The income for the quarter ended June 30 2008was Rs 4,854 crore (Rs 48.54 billion). The net profit stood at Rs 1,302 crore (Rs 13.02 billion).

Forbes magazine named Infosys in its list of Global High Performers. Waters magazine ratedInfosys as the Best Outsourcing Partner. The Banker magazine conferred two Banker

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Technology Awards on Infosys to acclaim its work in wholesale and capital markets in twocategories - Payments and Treasury Services, and Offshoring and Outsourcing.

The International Association of Outsourcing Professionals (IAOP) ranked Infosys at No. 3 in its'2008 Global Outsourcing 100'.

4. Satyam Computer Services

Established in 1987 by Ramalinga Raju, Satyam has a staff strength of 51,000 employees. In2008, the company's revenues crossed the $ 2-billion mark.

'A simple, yet extensive management model to create value, which promotes entrepreneurship, afocus on the customer, and the constant pursuit of excellence,' is the company's mantra forsuccess. In FY2008, its revenues saw a growth of 30.7 per cent to Rs 8,473.49 crore (Rs 84.73billion) compared to fiscal 2007.

The net profit stood at Rs 1,687.89 crore (Rs 16.87 billion), a growth of 20.2 per cent over fiscal2007. Satyam is among the youngest IT service companies to reach $1 billion in annualrevenues. It is ranked No. 1 in the ASTD (American Society for Training and Development)BEST Award, 2007.

5. HCL Technologies

HCL is a leading global technology player with annual revenues of $4.9 billion. The HCLEnterprise comprises two companies listed in India, HCL Technologies and HCL Info systems.Founded in 1976, HCL is one of 'India's original IT garage start ups'.

The HCL team comprises 53,000 professionals of diverse nationalities, operating across 18countries. At a time when India had a total of 250 computers, Shiv Nadar led a young teamwhich passionately believed in the growth of the IT industry.

Three decades later, he succeeded in creating a $ 4.9 billion global enterprise. The company hasreported consolidated revenue of Rs 3017.5 crore (Rs 30.17 billion) during the quarter endedMarch 31, 2008. The profit after tax stood at Rs. 81.5 crore (Rs 815 million).

6. Tech Mahindra

Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and BT plcin 1986 under the name of 'Mahindra-British Telecom'.

Later, the name was changed to 'Tech Mahindra', in order to reflect the diversification andgrowth of the client base and service offerings. The company was incorporated in 1986. TechMahindra is a global systems integrator and business transformation consulting firm focused onthe communications industry. At the helm of the fast expanding organization is Vineet Nayyar.

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In a career spanning over 40 years, he has worked with the government, international multilateralagencies and the corporate sector. Tech Mahindra's net profit rose 8.57 per cent to Rs 196.4 crore(Rs 1.96 billion) on 6.09 per cent growth in net sale to Rs 911.6 crore (Rs 9.11 billion) in Q3December 2007 over Q2 September 2007.

7. Patni Computer Systems

Patni Computer Systems Ltd one of the leading global providers of information technologyservices and business solutions. The company has clients across the Americas, Europe and Asia-Pacific locations.

The company has serviced more than 400 Fortune 1000 companies, for over two decades. PatniComputer Systems Limited was incorporated on 10 February 1978 under the Companies Act,1956. On 18 September 2003, the Company converted itself from a private limited company into

a public limited company.

The company headed founded by Narendra K Patni by has a staff strength of over 14,000professionals. The revenues for the quarter ended March 2008 stood at $ 176.4 million (Rs.7,061.2 million) up 13.1% YoY from $ 156.0 million (Rs. 6,724.1 million). The net income forthe quarter at US$ 18.1 million (Rs. 724.6 million) down 35.0 per cent YoY from $ 27.8 million(Rs. 1,200.3 million).Frost & Sullivan ranked Patni 1st among 'Top 5 Engineering ServiceProviders'.

8. i-flex Solutions

iflex started as a division of Citicorp (now Citigroup), wholly owned subsidiary called CiticorpOverseas Software Ltd. (COSL) in 1991. Later, a separate company Citicorp InformationTechnologies Industries Ltd. (CITIL) was formed and Rajesh Hukku was appointed as its head.

CITIL started off with the universal banking product, MicroBanker which became verysuccessful. In the mid-90s, CITIL developed Flexcube at its Bangalore development centre.After the launch of Flexcube, all of CITIL's transactional banking products were brought under acommon brand umbrella. CITIL changed its name to i-flex solutions to reflect its growingindependence from Citicorp and to strengthen its Flexcube brand.

In 2006, i-flex became a majority-owned subsidiary of Oracle Corporation i-flex posted a top

line growth of 8 per cent QoQ with revenue for the quarter ended March 31, 2008 at Rs 672crore (Rs 6.72 billion) as compared to Rs 601 crore (Rs 6.01 billion) for the correspondingquarter during the previous year representing a 12 per cent YoY growth.

The net income for quarter stood at Rs 185 crore (Rs 1.85 billion) representing 73 per centgrowth QoQ. The revenue for the full year ended March 31, 2008 stood at Rs 2,380 crore (Rs23.80 billion), up 15 per cent as compared to the previous year.

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9. MphasiS

MphasiS Limited was formed in June 2000 after the merger of the US-based IT consultingcompany MphasiS Corporation (founded in 1998) and the Indian IT services company BFLSoftware Limited (founded in 1993).

Jeya Kumar is CEO of MphasiS, which has a staff strength of 27,000 people. For the year ended31 March 2008, the MphasiS Group recorded revenues of Rs 2,423 crore (Rs 24.23 billion), agrowth of Rs 662 crore, which is 38 per cent over the previous year.

The net profit increased by 42 per cent from Rs 180 crore (Rs 1.8 billion) to Rs 255 crore (Rs2.55 billion) during the year ended 31 March 2008. MphasiS was named among amongst the Top100 Companies in Global Outsourcing.

10. L&T InfoTech

L&T InfoTech is a global IT services and solutions provider. It is a subsidiary company of isLarsen & Toubro Ltd. (L&T), an engineering, manufacturing and construction conglomerate,with global operations.

A M Naik is the chairman of the company. Originally founded as L&T Information Technology

Ltd (LTITL), a wholly-owned subsidiary of Larsen & Toubro Ltd (L&T), the company changed

its name to L&T InfoTech on 1st April, 1997. In 2004, it tied up with Fidelity Information

Services, a division of Fidelity National Financial to provide banking solutions for the Indian

banking industry. In 2007-08, L&T had recorded revenues of Rs 29,600 crore (Rs 296 billion)

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Top 10 IT companies in India commands over 95% market share of Indian IT ServicesIndustry (Software excluding hardware)

Top 5 IT companies commands over 80% market share of Indian software industry as of2011.

TCS enjoys 25% while Infosys has 18% market share. As per NASSCOM the total size of IT Services in India in 2011 excluding hardware is

approximately $ 33.5 billion (~ INR 1, 50,000 crores).

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In 1975, watching a movie in the theatre was a big deal for Mr. Gupta. There was the

cumbersome process of finding the show timings, waiting in the long queue for the tickets, and

yet face the risk of seeing the Houseful board when his turn came. In 2010 , Sandeep, his son,

surfs the web, visits the online booking site, finds different movies, checks their reviews, checks

shows timings available, books the tickets online through his card and reaches the multiplex just

in time for the movie!!

This is the power of Information Technology (IT) which enables two-way communication

between consumers and the enterprise. Improved IT infrastructure like ATMs and online

payments have done away with the hassles of carrying big chunks of cash in your pocket while

travelling

So, what exactly does IT cover? Anything involved with software, computers, networks,intranets, Web sites, servers, databases and telecommunications falls under the IT umbrella. IT isthe technology that helps companies store, process and flow data within an organization. Thissector ultimately serves other sectors like Banking, Manufacturing, Telecom, Hotels and

Hospitals etc. to improve their efficiency and increase their revenues via customer satisfaction

1. IT- SoftwareThese companies help in developing and implementation of different software

for their clients worldwide. These software could be for documentation, security services,

banking softwares etc.

2. ITeS Business process outsourcing (BPO)Major Corporations across the world outsources

their back-office operations to some companies. E.g. Employee payroll for a US companys

global workforce is maintained by an Indian BPO. Slowly the definition is expanding to Human

resources, accounting, logistics, legal processes etc.

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3. IT- Hardware and peripherals - The stuff you can actually see and touch, and would likely

break if you threw it out a fifth-story window, is hardware. This would include laptops, desktops,

Storage devices, Networking devices, LCD, printers etc.

4. IT- Education This segment provides training for employment in the other segments. This

would include companies providing various certification courses, like Java, Oracle etc. Thesecompanies also provide training for employees in corporate sector. Recently, some companies

have also expanded this service to cater to schools and colleges.

This sector has made significant contributions to Indias economic growth in terms of GDP

increase, foreign exchange earnings as well as employment generation. Its contribution to GDP

has increased tenfold in last decade, from 0.6% to 6% till 2009-10. The sector has helped India

transform from a rural and agriculture-based economy to a knowledge-based economy. Besides

this, the lives of people have been positively influenced by direct or indirect contribution of IT

sector to various parameters such as employment, standard of living, per-capita income etc.

In India, the IT Software segment has seen significant growth and has put India on the globalmap. It contributes for almost 75% of the total revenues of the IT sector. Though Hardwareenjoys second place in terms of market share in India, it is quite low as compared to globalbenchmark. The BPO segment has grown well and is expected to make a footprint in the ITSector

The software sector is service-oriented and thus the products offered are tailored to the

requirement of its client. Hence, major input costs are those of human resources (forming almost

40% of the total costs) and research and development. Companies understand the requirements

of clients and the product is developed accordingly.

In the last ten years the IT sector in India has grown at an average annual rate of 28%. India has

emerged as the preferred destination for IT services owing to the cost advantage and talent pool.

India accounts for almost 51% of the global sourcing market. Exports contribute around 75% of

the total revenue of the IT sector in India. However due to increased export-orientation and lesser

domestic consumption the sector suffered major hit in the recession that shook the globe in 2008-

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09. In the year 2010, different economies began seeing recovery, but at varying pace. Indian

companies have subsequently begun tapping other geographical markets and domestic

consumption has also relatively increased.

Comparing the Top Players

As can be seen from the table above, Educomp Solutions has clocked the highest Sales CAGR of

99% in the past five years, followed by HCL Info systems (50%), Infosys (24%) and Wipro

(22%). However, the highest margins are enjoyed by the software majors Infosys (28%), closely

followed by Educomp (27%) and TCS (24%).

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TCS History

Tata Consultancy Services Ltd is an information technology (IT) company. The company offersa range of IT services, outsourcing and business solutions. They also offer IT infrastructureservices, business process outsourcing services, engineering and industrial services, global

consulting and asset leveraged solutions. Their segments include banking, financial services andinsurance; manufacturing; retail and distribution, and telecom. The company is a part of TataGroup, one of India`s most respected business conglomerates and most respected brands. Theyare headquartered in Mumbai. They are having 142 offices in 42 countries as well as 105delivery centers in 20 countries. The company shares are listed on the National Stock Exchangeand Bombay Stock Exchange of India.Tata Consultancy Services Ltd was incorporated in theyear 1968. Tata Sons Ltd established the company as division to service their electronic dataprocessing (EDP) requirements and provide management consulting services. In the year 1971,they started their first international assignment.

The company pioneered the global delivery model for IT services with their first offshoreclient in 1974.In the year 1981, the company set up India`s first IT R&D division, the TataResearch Design and Development Centre at Pune. In the year 1985, they set up their first client-dedicated offshore development center for Compaq (then Tandem). In the year 1989, theydelivered an electronic depository and trading system called SECOM for SIS SegaInterSettle,Switzerland. In the year 1997, the company opened their new corporate training facility atTrivandrum. In the year 1998, they started virtualization of business. In the year 1999, they gotSEI-CMM Level 5 certification for their Qwest, HP, SEEPZ & Sholinganallur centers. Also, inthe year 20000, they got SEI-CMM Level 5 certification for their Calcutta, Bangalore, Lucknow, Hyderabad, GEDC, Ambattur and Ahmedabad centers. In the year 2001, the companycompleted the acquisition of public sector unit, CMC Ltd. In the year 2002, they expanded theirgeography into new growth markets like China/ Uruguay. The company saw outsourcingopportunity in E-Commerce and related solutions and set up its E-Business division with tenpeople. By 2004, E-Business was contributing half a billion USD to the company. During theyear 2004-05, the company acquired WTI Advanced Technology Ltd and TCS BusinessTransformation Solutions Ltd (Previously, Phoenix Global Solutions (India) Ltd), subsequentlythese two companies became the subsidiaries of the company. In August 9, 2004, the companybecame a publicly listed company. During the year 2005-06, the company acquired threecompanies Comicrom S A, Chile, Financial Network Services (Holdings) Pty Ltd, Australia(FNS) and Swedish Indian IT Resources AB (SITAR). The company made strategic allianceswith Diligenta Ltd for Life Insurance business. Also, they entered into a Joint VentureAgreement with the State Bank of India.

The new company was formulated and named C-Edge Technologies Ltd (C-Edge) forproviding advanced technology solutions and world-class domain consulting for the banking andfinancial services sector. During the year, the company ventured into a new area for an Indian IT

Services Company. In April 2005, Tata InfoTech Ltd with their three wholly owned subsidiaries,namely Airline Financial Support Services (India) Ltd, Aviation Software DevelopmentConsultancy India Ltd and TCS Business Transformation Solutions Ltd were amalgamated withthe company. During the year 2006-07, the company in partnership with the Government ofMadhya Pradesh formed a company, namely MP Online Ltd, for offering a wide range ofcomputer enabled services in the State of Madhya Pradesh. The company through their whollyowned subsidiaries Tata Consultancy Services Asia Pacific Pte Ltd and Tata ConsultancyServices Malaysia Sdn Bhd, subscribed to 100% share capital of PT Tata Consultancy Services,

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Indonesia, a company formed for providing consulting and IT related services in Indonesia TataConsultancy Services Netherlands B V, a wholly owned subsidiary acquired 75% equity interestin Switzerland based TKS - Teknosoft S A, for a consideration of Rs 368.06 crore. TCS FNS PtyLtd, another subsidiary acquired 100% equity interest in an Australian based company, TCSManagement Pty Ltd, for a total consideration of Rs 15.75 crore. Also, TCS FNS Pty Ltd

subscribed to 100% share capital of Financial Network Services Beijing Co Ltd to provideconsulting and IT related services in China.The company, through their wholly owned subsidiaries Tata Consultancy Services

BPO Chile S A and TCS Inversiones Chile Limitada, subscribed to 100 % share capital Tatasolution Center S A, to provide BPO services in Ecuador. During the year 2007-08, the companyopened a center in Cincinnati, USA, and a large centre in India at Hyderabad and laid thefoundation for a large center in Pune. They launched a major brand building initiative in order toarticulate and propagate its new brand positioning. Also, they signed a new multi-year contractwith Chrysler LLC for providing a comprehensive portfolio of IT services. TKS Services S.A.,Quartz Software Technology S.A. and Tata Consultancy Services Financial Solutions Limitedmerged with Tata Consultancy Services Switzerland Limited with effect from April 1, 2007. In

May 25, 2007, the company through their wholly owned subsidiary, Tata Consultancy ServicesDo Brasil Desenvolvimento De Servicos Ltda, acquired 100% equity interest in a Brazil basedCompany, GT Participacoes S.A. Also, Tata Consultancy Services Do Brazil DesenvolvimentoDe Servicos Ltda and GT Participacoes S.A. have merged with Tata Consultancy Services DoBrazil Ltda with effect from July 1, 2007. In June 21, 2007, the company subscribed to 100%share capital of Tata Consultancy Services Morocco SARL AU, a company formed for providinga range of computer enabled services in Morocco. In July 13, 2007, the company through theirwholly owned subsidiary, Tata America International Corporation, acquired 100% voting powerin TCS Financial Management LLC. In October 23, 2007, the company subscribed to 60% of theshare capital of Tata Consultancy Services (Africa) (Pty) Limited, a Company formed forproviding IT services and investing in companies in South Africa. In January 24, 2008, thecompany sold their shareholding interest in their associate Conscripti (Pty) Ltd, for Rs 3.83crore. In March 2008, the company opened their North America Delivery Center called TCSSeven Hills Park. During the year 2008-09, the company acquired Citigroup Inc.`s (Citi) 96.26%interest in TCS e-Serve Ltd (formerly known as Citigroup Global Services Limited), the India-based captive BPO, for a total consideration of USD 504.54 million. In addition, Citi signed anagreement with the company to provide process outsourcing services to Citi and their affiliatesfor an aggregate amount of USD 2.5 billion over a period of 9.5 years. During the year, thecompany through their subsidiary, Tata Consultancy Services Asia Pacific Pte Ltd, subscribed to100% share capital of Tata Consultancy Services (Thailand) Ltd and Tata Consultancy Services(Philippines) Inc. In June 2008, the company got $11.5 million transformational deal to design,install and integrate a tax administration system for the Uganda Revenue Authority (URA).

In July 29, 2008, the company won the highest incremental improvement award andmoved to the Industry Leader position in the Tata Business Excellence Model (TBEM) at theJRD QV Awards ceremony. In October 22, 2008, the Tata InfoTech Deutschland GmbH hasmerged with Tata Consultancy Services Deutschland GmbH. The merged entity is a whollyowned subsidiary of the company. In December 11, 2008, the company subscribed to 50% sharecapital of National Power Exchange Ltd, established to promote trading of electrical power inIndia. In June 5, 2009, the company, through their wholly owned subsidiary, Tata ConsultancyServices Canada Inc, acquired 100% interest in ERI Holdings Corp. In January 1, 2010, the

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company, through their wholly owned subsidiary, TCS Iberoamerica S.A., subscribed to 100%interest of TCS Uruguay S.A. In January 1, 2010, they purchased 100% interest of MGDC S.C.,Mexico, through their wholly owned subsidiaries, TCS Uruguay S.A. and TCS Argentina S.A. InJune 2010, the company signed a multi-year outsourcing contract with Telenor Norway. In June30, 2010, Syscrom S.A., Chile merged with Tata Consultancy Services BPO Chile SA, a wholly

owned subsidiary of TCS Inversiones Chile Limitada. Also, Custodia De documentos InteresLimitada, Chile merged with Tata Consultancy Services BPO Chile SA, a wholly ownedsubsidiary of TCS Inversiones Chil Limitada. During the year 2010-11 , the company set up fivesubsidiaries namely, MahaOnline Limited, Diligenta 2 Limited, MS CJV InvestmentsCorporation, Retail Full Serve Limited and CMC eBiz Inc. Also, Financial Network Services(H.K.) Limited was liquidated and de-registered during the year.

The Company entered into an agreement with the Government of Maharashtrapursuant to which a new subsidiary company, Maha Online Ltd (Maha Online) was setup onJuly 28, 2010 with equity participation from TCS and Government of Maharashtra. MahaOnlineprovides online internet-based citizen services to the residents in Maharashtra. This citizenservice portal is integrated with DigiGov, a state-of-the-art e-Governance solution developed by

TCS.In August 31, 2010, Diligenta Limited, a majority owned subsidiary, acquired the entireshare capital of Unisys Insurance Services Limited (UISL), which provides life and pensionsservices to its clients in the UK. On this acquisition UISL was renamed as Diligenta 2 Limited.In October 4, 2010, Tata America International Corporation - a wholly owned subsidiary,acquired 100% share capital of MS CJV Investments Corporation. Consequently, the groupholding in Tata Consultancy Services (China) Co., Ltd. has increased from 65.94% to 74.63%.InOctober 8, 2010, the Company acquired 100% equity share capital of SUPERVALU ServicesIndia Pvt Ltd from SUPERVALU Inc., one of the largest grocery retailers in North America. InDecember 2010, the company launched their new business process outsourcing (BPO) center inthe Philippines. The company won a contract for establishing and managing the State DataCentre for the state of Uttar Pradesh. In February 2011, they signed five year contract with du,the integrated telecom service provider in the United Arab Emirates. Also, they launched iON - afully integrated information technology solution for Small and Medium Business (SMB). iONprovides on-demand business solutions using scalable cloud computing technology. It has beendeveloped to deliver IT in the third generation service model to SMBs. In August 2011, thecompany and the Singapore Management University (SMU) announced the establishment of theTCS-SMU iCity Lab to be located at SMU. The collaboration agreement signed states the twoorganizations are partnering to create a new research facility to develop industry standards andIT frameworks for the emerging intelligent city (iCity) model of urban development. InDecember 2011, Call Genie Inc. announced that it has entered into a five year reseller agreementwith Tata Consultancy Services (TCS) the IT services, consulting and business solutions firm,whereby TCS will resell the full suite of Call Genie and Up Snap Mobile products worldwide. InFebruary 2012, the company signed a multi-year, multi-million euro contract with Europcar.After a rigorous evaluation process, Europcar Information Services (EIS), the company`s ITsubsidiary, selected TCS to manage strategic IT Services development for its French operations.Also, the company and Mitsubishi Corporation announced a new joint venture, Nippon TCSSolution Center Ltd, for the Japanese market. Nippon TCS Solution Center will offer a fullservice suite of IT, BPO and Infrastructure services to Japanese corporations. TCS Japan willhave 60% stake with Mitsubishi Corporation having a 40% stake. The joint venture will alsoestablish a near shore delivery center in Japan.

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