TCS close to getting largest e-governance contract, Infosys left behind one more time
TCS is close to wining the largest e-governance contract. The contract is for digitization of Employee State Insurance Corporation and providing smart cards to 1.5 crore industrial workers. Three companies (Infosys, TCS and Wipro) were in the race. TCS emerged as the lowest bidder. Infosys bid for 2100 crores, Wipro bid for 1890 crores and TCS bid for 1677 crores. If we just look at the numbers the difference is not much. But, when you put crores next to the numbers that makes a huge difference.
1600 core contract in times like these should really be handy. There are few things to look at in this story.
This is the 3rd strategic win for TCS.
- TCS bought Citigroup’s BPO for $505 mn.
- TCS won the 1000 crore passport contract.
- TCS close to winning the largest e-governance contract.
For Infosys, this is the 2nd loss (if you can call that)
- Infosys bids for Axon, HCL makes a counter-bid, Infosys did not revise the bid, Axon sold to HCL
- Infosys bids for the e-governance contract and loses to TCS by 400+ crores.
In one instance Infosys lost by bidding low and in another Infosys lost by bidding high. Is Infosys not getting its strategy right? Or is it making strategic bids so that its competitors follows and loses in the long-term?In this e-governance project, Infosys might be right in the actual cost. TCS might be underbidding to keep the ball rolling. No one can really know the difference. May be there is something which TCS knows and Infosys doesn’t.
What do you think Infosys’s real strategy is?