TCS deal with Chrysler strengthens auto portfolio
Hindu Business Line — April 8, 2008

Steady long-term revenue visibility seen

TCS’ multi-year deal win with Chrysler following an earlier deal in February signals further strengthening of its automotive sector practice. The new deal envisages delivery of application development and maintenance services, which are similar to the earlier deal, but the scope may have been enhanced in the present deal. As a part of the new deal, TCS will work upon portions of product development, sales and marketing, shared services and after-sales areas of Chrysler. These areas appear to give scope for a steady long-term revenue visibility for TCS as these are areas that are important to the business and less cyclical.

Coming on the back of the multi-million multi-year ArvinMeritor deal recently, the company’s focus on the automotive segment appears strengthened. This may also reduce dependence on the banking financial services and insurance segment to provide a more broad-based growth for the company.