Chrysler hires Tata of India for data work

Duties had been done by contractors

  Consultancy Services to do computer work for the automaker in sales, marketing and shared services as part of a multiyear contract, the Indian company announced Wednesday.

 

The value of the contract is $120 million, media reports in India said. The length of the contract was not revealed.

David Elshoff, a Chrysler spokesman, said the arrangement consolidates work that had been done by other contractors, which he declined to name. "This was work done by contractors before," he said.

The change has left information-technology workers at Chrysler unnerved and afraid their jobs will be eliminated, said several who have communicated with the Free Press.

Tata will manage daily maintenance of a variety of IT systems that are used to run Chrysler's business operations, he said. The India-based company will be working on such projects as Chrysler's online vehicle ordering system for dealers and maintaining the company's dealer-brand sites.

Chrysler's IT department turned to firms such as Tata beginning in 2002 as part of the automaker's Rite Source effort "with the goal of improving our overall efficiency," Jan Bertsch, Chrysler vice president and chief information officer, told Chrysler workers last month in a memorandum obtained by the Free Press.

That agreement recently ended and Chrysler apparently decided to increase work with Tata.

"These agreements will help us to evolve into a new operating model designed to provide even greater efficiencies, improved processes and more flexibility through increased supplier resource pooling capability," Bertsch said. "The first phase of this evolution and our new partnerships will start this month and will continue throughout 2008. As the year progresses, we'll continue to evaluate additional opportunities ... and will keep you apprised of the outcomes of our efforts."

The auto industry is a major focus for Tata Consultancy, accounting for 15% of the company's $4.3-billion in global revenues for fiscal 2007, the company said. Tata Consultancy is part of the Tata Group, one of India's largest conglomerates, which includes Tata Motors.

"This growing trusted partnership is a testament to TCS's competencies and capabilities which continue to help the customer in its business transformation by providing innovative IT services scalable to their needs," N. Chandrasekaran, Tata's executive director and chief operating officer, said in a statement. "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 Chrysler."

Contact TIM HIGGINS at 313-222-8784 or thiggins@freepress.com.