TCS, Wipro, Infy among companies battling it out for Rs 2,000-cr defence deals

TCS , Wipro and Infosys, apart from SAP and IFS Defense, are pursuing contracts worth Rs 2,000 crore from the country’s defense forces, the Indian Air Force (IAF) and the Army, who are seeking to modernise their processes and become more efficient organisations.

At least three people familiar with these contracts said both IAF and Indian Army have issued several request for proposals for these projects. When contacted by ET earlier this week, officials at Indian Army and IAF confirmed that their organisations are seeking suppliers, but declined to elaborate.

“The main purpose is to bring efficiency and reduce cost, time and paper work. There are hundreds of IT projects going on, including one for automating HR. We give certain projects to private companies, but there are also some projects which are confidential and classified and can’t be outsourced to anyone,” said an Army spokesman.

An IAF spokesman, who confirmed that tech companies are bidding for these projects , said e-maintenance of assets and material management are among top projects being considered. “The significance of such a project is that it plays a key role in logistics maintenance and is vital for sustaining operational capabilities and material management . For example, if you need to change and supply critical spares for the aircraft, such IT integrated systems can give constant update, and help react quickly and reduce time and costs,” he said.

Two of the biggest IT projects currently underway at Indian Army and IAF are computerised inventory control project (CICP) and integrated materials management online system (IMMOS). Business software makers SAP and IFS Defense are currently exploring an integrated ERP opportunity at these organisations.

An ERP software will help IAF and army track and maintain inventory, and help them become more efficient by responding to the changing needs of modern warfare. Expert Ratan Shrivastava, director aerospace & defense Practice at Frost & Sullivan, says both IAF and the Army are now preparing for changing dynamics of warfare.

Indian defense organisations have been evaluating an integrated ERP software for some time now. Bangalore-based stateowned aviation company Hindustan Aeronautics Limited (HAL) is currently using IFS’ ERP software. “Apart from a packaged software from SAP or IFS, the project would involve some system integration work, which could be done by TCS, Wipro, Infosys or HCL,” As India’s defense forces prepare to buy equipments and gears worth almost $100 billion over next five years, they will need a more sophisticated technology system for managing various processes.

“Asset tracking is one of the important areas for the defense forces, and more importantly that needs to be integrated with a bigger enterprise system-similar to an ERP software,” said a government official familiar with defense modernisation program. He requested anonymity because he is not authorised to speak to media.

“Optimum utilisation and enhanced availability of inventory will be crucial for mobile warfare and this can be achieved by deploying a sophisticated ERP system,” he said. “You cannot have an F-18 fighter and have an archaic system for managing the inventory ,” said Mr Shrivastava.

While most of the Indian tech vendors are exploring these contracts now, the country’s biggest software company TCS has been working on several IT projects with defense forces for over a decade. “TCS has been working on Army’s CICP project for over ten years,” Mr Shrivastava added. Officials at TCS, Infosys and Wipro did not comment because they are under a silent period prior to the announcement of their financial results in July.