Tata Consultancy Services Ltd. said the Milton Keynes, Buckinghamshire-based Volkswagen Group UK Ltd., has awarded a five-year contract to the company to deliver IT transformation and support services to Volkswagen Group. This is the first time Volkswagen has implemented an onshore-offshore model for its IT systems.
As per contract terms, TCS will IT support and transformation services for the Volkswagen Group UK for the next five year.
The Mumbai-based company said it would leverage its Global Network Delivery Model to provide onshore and offshore IT support services for the Volkswagen Group's operations throughout the UK and across the brands including Audi, SEAT, Skoda, Volkswagen passenger cars and commercial vehicles.
TCS said it would assist the Volkswagen Group in its business transformation programme to meet its aim to sell more cars, sell more parts, as also cut costs. Besides, it would support all brands within the Group as they move to a consolidated, standardized business platform, enabling geographic mobility of Volkswagen Group UK employees, increased flexibility, and cost reduction.
TCS added it has already commenced working with Volkswagen Group UK, and was tested within the first week on the project, when a major power outage at the UK head office Milton Keynes caused many of the Group's systems to fail on a Friday evening. TCS already mobilized a global team to work overnight onsite and from India, successfully recovering the entire Group's IT services in time for Saturday's trading.
From Milton Keynes, the company controls sourcing, marketing and distribution of all vehicles and parts in the UK, therefore, the health of its IT systems is critical to the company's operations across the country.
Nick Gaines, Group Information System Director, Volkswagen Group UK, said, "We could not have better proof that we are in safe hands with TCS. We have been deeply impressed by the dedication and collaborative approach taken both by the local and India-based teams. This gives me great confidence in the future relationship between our businesses.
A.S. Lakshminarayanan, Vice President and Head of Europe, TCS, said, "In this challenging environment, organizations are looking to increase efficiency and flexibility in order to stay competitive. By helping Volkswagen Group UK consolidate their IT systems onto a single platform, and harness the power of our Global Network Delivery Model, we are not only streamlining their infrastructure, but also their wider businesses processes. In the current economic climate, ensuring a business is fit, well and lean, in this way, is the key to success."
The Volkswagen Group UK Ltd. is a wholly owned subsidiary of Volkswagen AG, Europe's largest vehicle manufacturer that is based in Wolfsburg, Germany.
At the BSE, TCS shares are currently trading at Rs.622.00, down by Rs.15.50 or 2.43% on a volume of 4.93 lakh shares. The stock hit an intraday high of Rs.645.00 and a low of Rs.620.00.
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