The contract comes at a time when most Indian software companies, including TCS, Infosys and Wipro, are exposed to risk from US-based auto companies that are on the verge of bankruptcy.
Although TCS refused to disclose the size of the deal, it said they would provide both onshore and offshore services as per the contract.
This is the first time that Volkswagen has implemented an onshore-offshore model for its IT systems as earlier all IT work was done onsite. This could be seen as Volkswagen’s efforts to cut costs.
TCS will help consolidate and standardise the IT platform across all brands like Skoda, Audi, etc., increasing flexibility and reducing costs for the carmaker.
Analysts say the move is in sync with the current environment. “We are seeing an increasing focus on consolidation and cost optimisation in the current economic climate,” said TPI partner and president Duncan Aitchison.
“Companies with global operations and disparate brands need to think about streamlining their operations to survive and thrive in the future,” he added.
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