syntel strategy

Upload: gaurav-chamaria

Post on 05-Apr-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/31/2019 Syntel Strategy

    1/39

  • 7/31/2019 Syntel Strategy

    2/39

  • 7/31/2019 Syntel Strategy

    3/39

    $3 billion revenues and $10 billionmarket capitalization by 2015.

  • 7/31/2019 Syntel Strategy

    4/39

    PESTEL

  • 7/31/2019 Syntel Strategy

    5/39

    Decreasing Rupee value hits profits

    Lack of proper infrastructure

    Energy Prices are very High

    Stability of government

    Favorable Government Policy

    Ever changing

    Skilled manpower availability

    Good telecom system, connectivity

    Increasing wages in India, Decreasingwages in neighboring countries

    Fast diminishing English languageadvantage

    Attrition

    The legal system is complicated andresolution of issues takes a long time

    Infrastructural hurdles Add to CostInflation

  • 7/31/2019 Syntel Strategy

    6/39

    SWOT

  • 7/31/2019 Syntel Strategy

    7/39

  • 7/31/2019 Syntel Strategy

    8/39

  • 7/31/2019 Syntel Strategy

    9/39

    Mckinsey 7-S framework

  • 7/31/2019 Syntel Strategy

    10/39

    Strategy Customer retention

    Success at fixed priceA fixed price arrangement moves the burden and risk of on-time

    and on-budget service delivery to Syntel, leaving the customer withpredictable costs and consistent service levels.

  • 7/31/2019 Syntel Strategy

    11/39

    Structure

  • 7/31/2019 Syntel Strategy

    12/39

    Systems Upgradation to Nortel for internal communications

    Upgradation to Peoplesoft from internally supported software.FinanceHR

    Internal recruitment

  • 7/31/2019 Syntel Strategy

    13/39

    Skills 70% of recruitment is done through Campus

    InnovationCollection, Evaluation, Development, Deployment

  • 7/31/2019 Syntel Strategy

    14/39

    Shared Values Simple

    Complex problems often have simple solutions

    SmartSmart people and innovative ideas stand out.

    SpeedAct faster with flexibility, keeping quality and costs in mind.

    StretchRise beyond expectations

    SynergySum is greater than parts. Solve problems as a whole, not in

    isolation.

  • 7/31/2019 Syntel Strategy

    15/39

    Staff 12000+ in India alone

    Core competencies (Portfolio Analysis)

  • 7/31/2019 Syntel Strategy

    16/39

    Style Achievement oriented Leadership

    Goal setting for the year

    Participative Leadership

    Supportive Leadership

  • 7/31/2019 Syntel Strategy

    17/39

  • 7/31/2019 Syntel Strategy

    18/39

    e-Business development and integration

    Complex application development and management

    Product engineering

    Enterprise application services

    Data warehousing

    CRM and ERP

  • 7/31/2019 Syntel Strategy

    19/39

    Porters 5 Forces

  • 7/31/2019 Syntel Strategy

    20/39

    Threat of

    NEW ENTRANTS

    Time & Cost 8

    Specialist Knowledge 8

    Economies of Scale 8

    Cost Advantage 8

    Technology protection 8

    Competitive Rivalry

    No of Competitors High

    Quality differences Low

    Switching Cost Low

    Customer Loyalty -

    No of Suppliers High

    Size of supplier Variable

    Ability to substitute High

    Cost of Changing Variable

    Supplier Power

    Threat of

    SUBSTITUTES`

    Cost of Change(OpenS) High

    Cost of Change(MainF) Low

    BUYER Power

    No of Customers High

    Size of each Variable

  • 7/31/2019 Syntel Strategy

    21/39

  • 7/31/2019 Syntel Strategy

    22/39

    BCG Matrix

  • 7/31/2019 Syntel Strategy

    23/39

    Cash Cows

    Mainframe Projects

    Specifically Financial Project

    Invest

    Open System Indian MktEurope Mkt Telecom

    Animation

    Divest

    E-Business

    Team Sourcing

    Liquidate

  • 7/31/2019 Syntel Strategy

    24/39

    GE McKinsey

  • 7/31/2019 Syntel Strategy

    25/39

    Major SBUs in Syntel:

    Financial Services

    HealthCare and Life Sciences Automotive

    Insurance

    (90% of Revenue earned from these Verticals) Strategic New Initiatives???

  • 7/31/2019 Syntel Strategy

    26/39

    Q407 Revenue by Verticals

    Financial Services 71%

    HealthCare and Life Sciences 13% Automotive 7%

    Insurance 5%

    Others 4%

  • 7/31/2019 Syntel Strategy

    27/39

    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

  • 7/31/2019 Syntel Strategy

    28/39

    MarketAttractiveness

    Low

    Medium

    High

    LowMediumHigh

    Business Strength

    Application

    Outsourcing

    KPO

    E-BusinessTeam Sourcing

  • 7/31/2019 Syntel Strategy

    29/39

    Value Chain

  • 7/31/2019 Syntel Strategy

    30/39

    Price Differentiator

    Retaining Old Clients

  • 7/31/2019 Syntel Strategy

    31/39

    To create new opportunities for our clients byharnessing our passion, talent, and innovation

    MISSION

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

    VISION

  • 7/31/2019 Syntel Strategy

    32/39

    Market Penetration

    European Markets

    Australian Markets Indian Markets

    Diversification into other promising verticals

    Telecom

    Retail

  • 7/31/2019 Syntel Strategy

    33/39

    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

  • 7/31/2019 Syntel Strategy

    34/39

    Retention of Old Clients

    Diversification

  • 7/31/2019 Syntel Strategy

    35/39

    Customer Retention

    Attracting New Clients

    Knowledge Base Expansion

    Domain Expertise

  • 7/31/2019 Syntel Strategy

    36/39

    Start Internal Universities For each Vertical

    Employees enroll into these universities to learnabout the business

    Different levels from basic knowledge to gettingbusiness

    Retain Old clients

    By increasing Operational efficiency Setting up Knowledge Management Systems

    Internal Portals

  • 7/31/2019 Syntel Strategy

    37/39

    Set Quarterly/yearly targets for eachproject

    Monitor Targets

    Attrition

    Customer Satisfaction

  • 7/31/2019 Syntel Strategy

    38/39

    Regular reviews on a half yearlybasis/yearly basis

    Review Operational

    BPO

    KPO

    Verticals

    Financial

  • 7/31/2019 Syntel Strategy

    39/39