You are on page 1of 39

Syntel Case Study for Environmental Analysis

Mission
To create new opportunities for our clients by harnessing our passion, talent, and innovation

Vision
$3 billion revenues and $10 billion market capitalization by 2015.

Environmental Analysis
PESTEL

PESTEL
Political
Stability of government Favorable Government Policy

Economic
Decreasing Rupee value hits profits Lack of proper infrastructure Energy Prices are very High

Increasing wages in India, Decreasing wages in neighboring countries Fast diminishing English language advantage Attrition

Social

Technology
Ever changing Skilled manpower availability Good telecom system, connectivity

Environmental
Infrastructural hurdles Add to Cost Inflation

Legal
The legal system is complicated and resolution of issues takes a long time

Environmental / Industry Analysis


SWOT

SWOT
27 years old company Development centers both in US and India Listed in NASDAQhelps build the brand First firm to run an around-the-clock IT project approach. Approximately 90 percent of revenues are from repeat/referred customers, one of the best rates in the IT services business. Many Awards and several media awards Since not an Indian company, the brand in India is not known

WEAKNESS

STRENGTHS

SWOT
OPPURTUNITIES
There is a heavy downward pressure on IT budgets resulting in increase in off-shoring by companies Business Process Outsourcing, and particularly, off-shoring is increasing in order to reduce process costs Under penetrated verticals Telecom services, retail & healthcare present potentially huge opportunities New opportunities - European, Japanese, African markets Competition from low-cost locations such as China, Philippines, Romania can pose a threat. Wages are 30-50 percent less than the wages of a comparable Indian programmer Legislation against off-shoring by governments in client markets, to save jobs for local population, may result in reduced off-shoring to India With increasing competition, margins are reducing for Indian IT firms as they try to retain business

THREATS

Environmental Analysis
Mckinsey 7-S framework

Mckinsey 7-S FrameWork


Strategy
Customer retention Success at fixed price A fixed price arrangement moves the burden and risk of on-time and on-budget service delivery to Syntel, leaving the customer with predictable costs and consistent service levels.

Mckinsey 7-S FrameWork


Structure

Mckinsey 7-S FrameWork


Systems
Upgradation to Nortel for internal communications Upgradation to Peoplesoft from internally supported software. Finance HR Internal recruitment

Mckinsey 7-S FrameWork


Skills
70% of recruitment is done through Campus Innovation Collection, Evaluation, Development, Deployment

Mckinsey 7-S FrameWork


Shared Values
Simple Complex problems often have simple solutions Smart Smart people and innovative ideas stand out. Speed Act faster with flexibility, keeping quality and costs in mind. Stretch Rise beyond expectations Synergy Sum is greater than parts. Solve problems as a whole, not in isolation.

Mckinsey 7-S FrameWork


Staff
12000+ in India alone Core competencies (Portfolio Analysis)

Mckinsey 7-S FrameWork


Style
Achievement oriented Leadership Goal setting for the year Participative Leadership

Supportive Leadership

Portfolio Analysis

Portfolio Analysis
e-Business development and integration

Complex application development and management


Product engineering Enterprise application services

Data warehousing
CRM and ERP

Industry Analysis
Porters 5 Forces

Porters 5 Forces
Time & Cost Specialist Knowledge Economies of Scale Cost Advantage Technology protection 8 8 8 8 8

Threat of NEW ENTRANTS

Competitive Rivalry
No of Competitors
Quality differences Switching Cost Customer Loyalty

BUYER Power
No of Customers Size of each High Variable

Supplier Power
No of Suppliers
Size of supplier Ability to substitute Cost of Changing

High
Low Low -

High
Variable High Variable

Threat of SUBSTITUTES

Cost of Change(OpenS) Cost of Change(MainF)

High Low

Top IT Players
Top Global IT player Microsoft IBM Accenture CapGemini EDS HP Top Indian IT player Infosys TCS Wipro Satyam HCL

Internal Analysis
BCG Matrix

BCG Matrix

Invest
Open System Europe Mkt Animation Indian Mkt Telecom

Divest
E-Business

Team Sourcing

Cash Cows
Mainframe Projects
Specifically Financial Project

Liquidate

Internal Analysis
GE McKinsey

GE McKinsey
Major SBUs in Syntel:
Financial Services HealthCare and Life Sciences Automotive Insurance (90% of Revenue earned from these Verticals)

Strategic New Initiatives???

GE McKinsey
Q407 Revenue by Verticals
Financial Services 71% HealthCare and Life Sciences 13% Automotive 7% Insurance 5% Others 4%

GE McKinsey
Q407 Revenue by Operations
Application Outsourcing 65.5% Knowledge Process Outsourcing 18.6% E-Business 10.4% Team Sourcing 5.5%

KPO Operations Revenue grew over 155% on Year-on-Year Basis

GE McKinsey
Market Attractiveness Medium Low High
KPO Application Outsourcing

Team Sourcing

E-Business

High

Medium Business Strength

Low

Internal Analysis
Value Chain

USP
Price Differentiator Retaining Old Clients

Strategy
MISSION

To create new opportunities for our clients by harnessing our passion, talent, and innovation
VISION

To be recognized and respected as one of the Fortune 500 companies in the coming 5 years

Strategy
Market Penetration
European Markets Australian Markets Indian Markets

Diversification into other promising verticals


Telecom Retail

Strategy
Get listed on the BSE
Will help in getting recognition in the Indian Market Raise money for expansion into other markets

More marketing in India


To make the presence felt in India

Learning Curve
Retention of Old Clients
Diversification

Experience Curve
Customer Retention Attracting New Clients Knowledge Base Expansion Domain Expertise

Internal
Start Internal Universities
For each Vertical Employees enroll into these universities to learn about the business Different levels from basic knowledge to getting business

Retain Old clients


By increasing Operational efficiency Setting up Knowledge Management Systems Internal Portals

Monitor & Control


Set Quarterly/yearly targets for each project Monitor
Targets Attrition Customer Satisfaction

Monitor and Control


Regular reviews on a half yearly basis/yearly basis Review
Operational BPO KPO Verticals Financial

Thank You

You might also like