Analysis of capital markets to identify the potential opportunities for Tata consultancy services

Capital Markets across the world are flourishing and lot of investment is being done to improve the market infrastructure. Clearing and Settlement is the post trading process which is now undergoing a lot of changes to reduce the transaction cost both in domestic and cross border settlements. The regulatory institutions for securities in each country/region are coming up with different standards to harmonize and standardize the clearing and settlement space. Harmonization results in reduction in cost and interoperability. These financial institutions are looking for a vendor who can give them the solution with these standards at a lower cost and lesser time. Hence the IT firms should be more proactive and position their product according to the market needs. By analyzing the current trends and challenges in the market, they can identify the possible opportunities and come up with the solution even before the customers approach them. This study also would help them to design their marketing strategy in clearing and settlement space. The geography wise trends help them to design the strategy for each market separately. The study also analyses whether there is correlation between number of trades in a particular region and the IT spending in that region. If correlation is present between them, then by analyzing the trend in number of trades, share volume and trade value one can say what will be the IT spending in that region. Qualitative analysis of the current trends and challenges are very important for an IT industry because the trends, regulations are some of the factors which drive the change. Hence the current trends and challenges are analyzed and areas opportunity for TCS is identified and recommendations are given finally.