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DID CHRYSLER MAKE THE RIGHT OUTSOURCING DECISION?
On April 4, 2008, Tata Consultancy Services (TCS), a leading global information technology services provider, announced it had signed a multi-year, multimillion dollar outsourcing contract to provide Chrysler LLC with a comprehensive set of information technology services. Was this a good move for Chrysler? Tata Consultancy Services is a unit of the Tata Group, and a sister division to Tata Motors, a company that will compete in India – and potentially other parts of the world – with Chrysler. Tata Motors recently purchased the Jaguar and Land Rover Brands from Ford Motor Company. One of TCS’s focus markets is the automotive industry. TCS provides services for products development, manufacturing, supply chain, and customer service support to the leading auto manufacturers and suppliers in North America, Europe, and Japan. More than 15 percent of TCS’s $4.3billion in annual revenue came from services for auto manufacturers. A preliminary version of the agreement had been announced earlier in February. Tata agreed to take over Chrysler’s application maintenance and support services, particularly for Chrysler’s sales, marketing, product development, shared services, and after sales functions. In providing theses services, TCS will leverage its Global Network Delivery Model, a collaborative best-of-class framework of people, processes, and infrastructure that uses TCS’s tools, methodologies, and products to help customers reduce implementation time and realize business benefits. The Global Network Delivery Model is considered a benchmark of excellence in software development. TCS has over 108.000 IT consultants in 47 countries, including the United States. According to N. Chandrasekaran, TCS executive director and chief operating officer, “The expertise and in-depth knowledge of the automotive industry and Chrysler’s business, coupled with our ability to deliver certainty of results, will provide sustained value to...
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