Tata Chemicals hands over IT function
to TCS as part of 10-year deal
Financial Express — September
5, 2001
Tata Chemicals has outsourced its complete Information technology
(IT) requirements under a 10-year arrangement to Tata Consultancy
Services.
TCS will manage, operate and plan Tata Chemicals’ strategic
IT initiatives. The MIS (Management Information Systems) staff
of 20 from Tata Chemicals has been absorbed by TCS. Tata Honeywell
has been awarded the contract for systems implementation.
Announcing this at a press conference in Mumbai, TCS officials
said that the company will set up a program management office
to maintain and support Tata Chemicals IT infrastructure and
also manage all its vendor interactions.
Mr Prasad Menon, MD, Tata Chemicals said: "We want to
IT-enable all processes. We expect a Rs 19-20 crore outgo
in the next three years and expect savings to the same extent."
Mr Menon added that the initiative will straddle a gamut
of functions within Tata Chemicals ranging from plant automation,
cost reduction in raw materials, improving customer relationships
and bringing about efficiencies in working capital utilisation.
Mr Ramadorai, CEO, TCS, said that the manufacturing practice
will account for 20-22 per cent of his revenues this fiscal.
He also added that he expected a 5 percentage point swing
towards the offshore component in the revenues this fiscal.
The company is looking to tap the Asia-Pacific and Latin American
regions and has just opened an office to service that region.
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