Tata Chemicals to outsource its IT needs from TCS

Tata Chemicals has signed a contract with Tata Consultancy Services (TCS) for outsourcing its entire IT requirements through TCS for a period of ten years.

The agreement suits TCS well, as outsourcing of IT and core technology solutions by the manufacturing and process industry sector from TCS is a focus area for it.

The segment, called Manufacturing Practice, is expected to contribute about 20 per cent to TCSs revenues in the fiscal 2002. It had contributed roughly 15 per cent to TCS revenues in the fiscal 2001, which were placed at Rs 3,142 crore, TCS officials told domain-b.

TCS will not only create IT systems for Tata Chemicals that will help integrate its supply chain, but will also provide the much-required IT backbone for its various other existing activities and its new initiatives to be rolled out in the future.

The two companies plan to work together to deploy IT to bring about operational efficiencies in the company by coordinating plant systems and commercial operations. Tata Chemical managers plan to use more automated support systems that will help track major performance indicators in the areas of procurement, inventory, production, plant maintenance and distribution.

As per the contract, TCS will also give infrastructure services support and high-end technology solutions to Tata Chemicals at all its operating locations. Towards this end, TCS has already taken up commissioning of automation systems at the soda ash plant of Tata Chemicals located at Mithapur, Gujarat, sub-awarding the contract to the group company Tata Honeywell.