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Home > THE DQCI SILVER CLUB 2004
 

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TATA INFOTECH: Global Outlook, Local Loss
 
After two years of negative growth, Tata Infotech broke the jinx and posted a marginal 4% growth in domestic systems integration at Rs 151 crore.
 

 
Monday, September 20, 2004

 

Charles Anthony,
PRESIDENT & COO

SERVICES: Wireless, infrastructure setup, networking, security 
EMPLOYEES: 2,834 BRANCHES:
ADDRESS: Manish Commercial Center, 216-A, Dr. Annie Besant Road, Worli, Mumbai 400 030 
TEL: 022-56664300

STRENGTHS
l Set up concept centers for IBM systems and ERP offerings
l Concentrated on wireless and business intelligence applications
WEAKNESS
l Focus on overseas SI deployments resulted in comparatively slower domestic growth
l Faced increasing competition from local SIs, who offer better cost advantage for Indian customers

Tata Infotech's domestic revenue in 2003-04 registered a growth of 11% at Rs 241.05 crore, up from the previous year's Rs 207.95. Revenue from systems integration services increased by 24% to Rs 457.70 crore from Rs 368.35 crore. Domestic SI revenues were around Rs 151.18 crore in 2003-04, up from Rs 144.74 crore in the previous fiscal.

Tata Infotech identified telecommunications as a growth area last fiscal and started offering services like operational and business support systems, wireless systems integration, wireless testing and tools for this segment. It also increased its work force to 2,834, from the previous fiscal's 2,700 members.

The company decided to invest in client education by providing simulated environments to demonstrate the usability and application of its various solutions. This strategy resulted in the setting up of an IBM Center of Excellence, to build on technologies and solutions on IBM's S/390 and allied platforms. It also reinforced its focus on ERP products and implementation like Oracle e-business suite, SAP and PeopleSoft, by establishing an ERP Center of Excellence.

Tata Infotech entered into a strategic technology alliance with SAS India to offer customer analysis and organization intelligence solutions. The offering from this tie-up includes demand and process intelligence solutions, warranty analysis and value chain analyzers.

Tata Infotech had a line-up of projects in the last fiscal. Some of them included IT infrastructure related services for leading information storage and management vendor, infrastructure services for a telecom major, wireless implementation for a retail company, an interconnect billing application development for a telecom company, provision of networking equipment for the Railways and computerization of operations for a Government ministry.

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