TCS and HAL in strategic partnership for the global aerospace industry
June 15, 2005

Tata Consultancy Services (TCS), (BOMBAY: TCS.BO, NSI: TCS.NS), a leading global technology services organisation and Hindustan Aeronautics Limited (HAL), a premier global aircraft design and development company announced a strategic partnership to provide cutting-edge engineering solutions for the global aerospace industry.

TCS and HAL have commenced collaboration to provide end-to-end engineering solutions to global customers. TCS already provides IT and engineering services to several global aerospace companies while HAL is a premier aircraft design and development organisation with world-class capabilities in manufacturing and testing. The partnership has begun providing engineering services to the aerospace industry worldwide.

"We are strengthening our long relationship with Hindustan Aeronautics to offer complete best-in-class engineering solutions to the global aerospace industry. With increasing interest in global sourcing of engineering services, the unique combination of HAL and TCS will offer compelling value propositions for global clients," said S Ramadorai, CEO and managing director, Tata Consultancy Services.

Speaking at the Paris Air Show, HAL chairman, A K Baweja said, “The HAL-TCS partnership will leverage the strong engineering tradition in India to offer end-to-end solutions to the global aerospace industry. With TCS' strong international presence spread across 55 countries and HAL’s domain expertise, the partners will be able to go to market aggressively."

TCS has several years experience working with many aerospace companies like AVIO, Boeing, B/E Aerospace, EADS CIMPA, Dunlop Aerospace, GE Aircraft Engines, SME Aerospace, Goodrich, Pratt & Whitney and others. With over 40,000 of the world’s best-trained IT consultants located in 33 countries, TCS is uniquely positioned to deliver its flexible world-class services seamlessly to any location. TCS reported consolidated revenues of $2.24 billion (U.S.) in the fiscal year 2004-2005.

HAL works with Boeing, Airbus, Honeywell, BAE System, EADS, SNECMA group, Rolls Royce and others. HAL has extensive facilities for design, development and manufacture of modern fighters, transports, trainers and helicopters, associated aeroengines, accessories and avionics spread across 16 production divisions and 9 R&D centres, HAL is the largest aeronautical company of South East Asia with an annual turnover exceeding US $ 1 billion. HAL’s flagship products like Dhruv helicopters and Intermediate Jet Trainer have impressed the aviation fraternity at the Paris Air Show. Highly talented manpower and strong R&D make HAL an ideal strategic partner in providing end-to-end solutions for a vast range of aeronautical software.

“TCS pioneered the paradigm of global engineering services almost two decades ago offering product development, plant automation and enterprise asset management services. The MoU with HAL will enable TCS to offer a complete range of high-end engineering services to its existing customers,” said Ravi Gopinath, vice-president, engineering and industrial services, TCS.

India’s software industry association, Nasscom, estimates that design spends of the top 10 players, who account for over 90 per cent of all design spend in the aerospace industry amount to nearly USD 2.8 billion every year. The outsource-able portion of this spend is estimated by Nasscom to be at over USD 1 billion. Engineering services outsourcing in the global aerospace industry is an emerging phenomenon, but with competitive pressures impacting the aerospace sector the growth rate of these services is likely to be rapid, say analysts. Outsourcing in aerospace primarily revolves around four major sub-systems of the aircraft - structures, avionics, engine performance and analysis and systems.

This unique partnership between TCS and HAL will help showcase the engineering and delivery strengths of both partners. TCS has a strong global presence with a sales network covering 55 countries as well as strong and proven offshore delivery capabilities through its 33 global offshore delivery centres in 10 countries. It has helped aerospace customers from various offshore locations and has deep domain knowledge about aerospace product design, life-cycle management and asset management.