Tata Consultancy Services bags multi-year deal from Chrysler

According to the agreement, TCS will deliver IT application and maintenance support services to Chrysler by leveraging its Global Network Delivery Model from various locations around the world, including the recently announced TCS Seven Mills Park domestic delivery center outside Cincinnati, Ohio, and through a locally recruited team in the Detroit region of Michigan.

The project will include a portion of several functional areas within Chrysler such as sales and marketing, shared services, product development and after sales.

"TCS is proud to play an increasing role in Chrysler's business transformation and global expansion efforts," said N. Chandrasekaran, executive director and chief operating officer of TCS.

"Our ability to deliver certainty of results across the entire spectrum of IT services in Chrysler's operations will bring greater efficiencies to their business allowing them to invest more in advanced technology and change-the-business initiatives," he added.

TCS provides services to many automotive original equipment manufacturers and tier-one companies in North America, Europe and Japan. Clients in the automotive industry provide account for 15.1 percent of TCS' global revenues of $4.3 billion for the FY 2007.

This is the second deal TCS has won from Chrysler. The Indian company announced in February it had got a $120 million order from Chrysler.

The financial details of the latest deal were not disclosed.

In a related development, Chrysler said it would cut 200 salaried workers and a number of contract workers in information technology management related functions. This is part of the company's restructuring plan.

TCS, the Asia's largest IT services company with a market value of $21.40 billion, has operations in 47 countries and a total headcount of 108,000.

Chrysler LLC is a wholly owned unit of Chrysler Holdings LLC, which in turn is owned 80.1 percent by Cerberus Capital Management LP and 19.9 percent by Daimler AG.