Offshorer boosts local staff (The Australian IT)
INDIAN outsourcer Tata Consultancy Services is planning to boost its Australian headcount by up to 300 people over the next 12 months as a result of kicking off this year with $140 million worth of new business.
TCS Asia-Pacific director Girija Pande said the company was likely to increase its domestic headcount from 400 to 700 by the end of March next year following a series of deals with new and existing customers. Wins included agreements with Ford, Transurban, Foxtel, Austar, Hutchison Telecommunications, Sensis, Alinta and the Bank of China, and Mr Pande said the deals had a combined value of about $140 million.
The contracts follow TCS’s high-profile technology services deal with Qantas last year and cap a lucrative few months.
Mr Pande said the new deals would help boost TCS’s Australian revenue by 50 per cent to about $130 million by the end of its 2008 financial year, which closes on March 31 next year.
“Australia is a reflection of what’s going on in the region. TCS in the region is growing at more than 40 per cent and, in the last five years our growth rate has been around 45 per cent per annum,” Mr Pande said.
“Australia is a market where we’ve established our reference and brands in quality of delivery.”
TCS will now build up its Australian operations to cope with the influx of new business and it is recruiting staff from throughout the region to work here.
“We’ve got nearly 400 people and nearly two-thirds of them are locals we have hired here. We also want to go seriously into a university program where we can hire people from Australian universities.”
Some work for customers such as Hutchison and Ford is being sent offshore but deals with Alinta and Sensis, which use the recently acquired TCS Management, will be fulfilled domestically.
TCS Management is an Australian business consultancy that Tata Consultancy Services acquired for $15 million towards the end of last year.
The TCS Management acquisition was Tata’s second major Australian purchase in 12 months.
It paid $US26 million for core banking system maker Financial Network Services (FNS) in October 2005.
Mr Pande said Tata had no immediate plans for further Australian acquisitions. “We’re very pleased with the TCSM acquisition and we hope that synergies will come when we take some of the TCS Management offerings into our TCS customers and vice versa,” he said.
“This coming year we’re going to focus on integrating TCSM well, getting those synergies and, of course, working on some of the projects we have started.”
Tata is targeting five industry segments in Australia: manufacturing, distribution, transport and retail, media and utilities, government, and insurance, banking and financial services.