General Motors and Tata Consultancy Services recently announced a new strategic partnership that builds on a 16-year relationship between the two companies. The new GM partnership will include support from TCS with regard to various global vehicle engineering programs, with TCS providing design services over the next five years. The projects will focus on a variety of vehicle features, including propulsion systems, vehicle engineering, controls development, testing, creative design, and more.
Tata Consultancy Services, or TCS, is a multinational information technology service and consulting service headquartered in Mumbai, India. TCS is a subsidiary of Tata Group, one of India’s largest conglomerates.
In a recent press release, General Motors’ vice president of electrification, controls, software and electronics, Dan Nicholson, commented on the new GM partnership, saying “TCS has been an outstanding partner for 16 years. We are pleased to evolve our partnership even further, as we work to deliver on our commitment to create a world with zero crashes, zero emissions and zero congestion.”
As part of the new GM partnership, TCS is slated to acquire a number of assets at the GM Technical Center – India (GMTC-I). This includes the transfer of more than 1,300 GMTC-I employees to TCS. Financial details of the deal were not outlined. However, according to a recent press release, the asset handover is slated for completion by the end of the month.
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“Next generation automotive R&D is a key focus area for TCS, given the criticality of product innovation and connectedness in the Business 4.0 world,” said the Global Head of Manufacturing Business Group, TCS, Susheel Vasudevan. “This new partnership with General Motors is a testament to our willingness to invest in the relationship for the longer term.”
“This partnership will make both companies stronger,” said GMTC-I vice president of engineering and operations, Brian McMurray. “GM will benefit from the scale and cross-sectoral knowledge of TCS, while TCS will benefit from the influx of world-class engineering talent.”
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Comments
This will help development cost with little risk to markets GM is in.
It’s interesting to see the different approaches GM and Ford are taking
Ford is struggling to remain viable as the family who still holds 51% of the company hangs on while stock prices are $9 per share. Their options are more limited.
GM on the other hand has cut cost and still has one of the largest tech branches in the industry. With their better financial standing they can pick and choose who they work with.
Maybe GM can outsource their manufacturing jobs to TCS.
I’m sure they’ll cross the picket line.
my experience with indian consultants is that they will send their best to work on-site. they deal with the customer directly and for the most part, they are competent. they get the specs and communicate that back to the staff in india to do the actual work.
but the team back in india was sort of like the minor leagues. you are getting billed hours for entry level staff that are basically learning on the job. they don’t get paid very much and once they develop some competence, they quit and the cycle repeats itself.
anyway, i bet those former indian gm employees are not so thrilled about getting off loaded to tata. it will mean less pay and benefits otherwise why would gm do this “asset transfer”.
and how does tata prevent the work they do for gm doesn’t leak to work they do for other clients and vice versa? the fact is they don’t. and billing one worker’s hours to multiple client’s … happens all the time.
They will send an American on site in many cases – or Indian consultants that are experienced with American clients. They are high caliber and very competent. The success of the project depends on that, which their clients and employers know.
But you are correct about the staff back in India being considered “minor league”. That’s the case with all consulting companies these days, but it seems expendable pronounced with the Indian firms.
There is more work to go around than people to do it. Even the American and European firms (Accenture, etc.) are having trouble finding experienced people now.
The most innovative, prestigious firms are poaching the best and brightest as fast as they can – the slow hiring back in 2009-2014 has resulted in a lack of qualified, experienced people in the industry today.
Is this just a support contract?
TCS isn’t know for being the best consulting company beyond providing sustainable support. They have a reputation as being the cheapest (and massive) though, and they can deliver even if it’s not always the most efficient.
That being said, this looks like it’s a semi-customized team geared towards General Motors specifically. That would definitely occur with a big fish like GM on a long term contract.
Not the most prestigious choice (TCS), but it’s a sensible and defendable move by GM.
In my view “Technical Center” has more value than ” Human assets” . Valuation of process knowledge and tacit knowledge of vehicle engineering built over century is challenging task. This is not adequately addressed by IP Laws.