Friday, January 30, 2009

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TCS beats recession, wins new orders

Even as the fear of recession hits IT companies, Tata Consultancy Services (TCS) walk away with one order after another. In the last couple of months, TCS has bagged several orders from various international players. To begin, it landed the World Bank order.

This was followed by a contract from the Caterpillar. Soon, the Italian bike maker Ducati Motor Holding made a beeline for TCS.

Today, the Tata company has added yet another to its growing list of clients by getting an order from Phones 4U of the U.K.

Sources say that the international companies are even now looking at low cost countries for their off-shore option. This syndrome will continue even during the recession period. Today, customers do not want to spend more money on the near-shore market, which is customer location. This will be a boon to Indian IT companies. But what will happen if the rules are reversed by the U.S. President Barak Obama? One has to wait and watch. However, TCS seems to be looking at Europe and the U.K. markets in a big way. Will this be an alternative proposition for TCS?

Today, the company has bagged a $100 million agreement to provide a full range of managed IT services to 4UGroup, the holding company of Phones 4U, and other organisations in the U.K. telecommunication and financial services marketplaces.

Under the agreement, TCS will provide a full range of IT and business change services to 4U Group, including service management, application support, maintenance, management and development, data centre and desktop services, helpdesk, networks and communications, business support, and management of all third party contracts for the organisation’s retail operations. This will enable the group to improve IT service, increase capacity, boost skills, create a more flexible IT model and ultimately enhance the business to meet current and future demands.

According to sources, it will be a three-to five-year agreement. Since the retail innovation centre is located in Chennai, it is assumed that the delivery will be from the centres located in Chennai. Similarly, the company has also reportedly bagged another retail order from the U.S.

A. S. Lakshminarayanan, Vice-President and Country Manager, U.K. & Ireland, TCS, said the significant contract win underlined the important role that the company played in enabling the U.K. businesses to enhance their competitiveness and retain market share, especially in the current economic environment.


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