ABSTRACT
Information Technology (IT) firms are structured internally into various components to provide customized services to their customers. Owing to the significance of internal structure, the objective of the paper is to study quarterly efficiency of five IT software companies (Infosys, Tata Consultancy Services (TCS), Wipro, Cognizant and Accenture) based on components like FSI (Banking, Financial, Securities, and Insurance), MFG (Manufacturing), RCL (Retail, Consumer Packaged Goods, and Logistics), ERU (Energy, Utilities and Resources), CME (Communication, Media, and Entertainment) and LSH (Life Sciences and Health Care Services) using multi-component data envelopment analysis. Results obtained establish that Infosys is the most efficient company followed by Cognizant and Accenture while TCS and Wipro are inefficient in some of the components. Empirical results show that the companies performed efficiently in FSI, RCL and CME components whereas ERU, LSH and MFG components require improvement. Further, the geography-wise efficiency trends indicate that the selected companies are more efficient in the rest of the world as compared to the European and North American regions. These findings will help IT firms in identifying their inefficient components and provide guidance in formulating strategies for improvements. Moreover, other domestic and foreign firms may also learn from the findings of the study.
Additional information
Notes on contributors
Sumit Goyal
Sumit Goyal is a Ph.D. scholar at School of Humanities and Social Sciences, Thapar Institute of Engineering and Technology, Punjab, India. He is working as a associate Director at Infosys Ltd. Sumit brings 18+ years of international experience working with Information Technology (IT) companies across the globe. He is an expert in Program management and is a devOps, Agile enthusiast. Sumit has published a paper on application of DEA methodology in IT companies in SSCI journal and has presented various papers at industry conferences and at national forums such as NASSCOM.
Ash Narayan Sah
Ash Narayan Sah is an Assistant Professor in Economics and Engineering Economics in Thapar Institute of Engineering and Technology, Punjab, India. He is a doctorate in Finance from University of Hyderabad. Dr. Sah has published two books which are Data Analysis Using MS-Excel and Statistics for Management Using Microsoft Excel and has more than 10 publications to his credit. Dr Sah’s area of interest are Financial Markets and Macroeconomics.
Jolly Puri
Dr. Jolly Puri is an Assistant Profressor in School of Mathematics in Thapar Institute of Engineering and Technology, Punjab, India. Dr. Puri is a doctorate from Indian Institute of Technology, Roorkee, India which is amongst the top institutes in India. She has published numerous papers on theoretical and methodological development of Data Envelopment analysis in uncertain environments with their applications in various fields. Her interest areas include Data Envelopment Analysis (DEA), Dynamic DEA, Inverse DEA and Fuzzy DEA.