Chrysler consolidates IT work with Tata

Indian offshore firm Tata Consultancy Services is getting a bigger share of Chrysler's outsourcing by taking over IT work handled by separate service providers.

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Indian offshore firm Tata Consultancy Services is getting a bigger share of Chrysler's outsourcing by taking over IT work handled by separate service providers.

Under the agreement made public this week, Tata will be responsible for a variety of IT systems at the automaker, including online vehicle ordering systems for dealers and maintenance of the company's dealer and brand Web sites.

The consolidation under Tata will deliver greater efficiency for the automaker, but will not affect the jobs of any existing Chrysler employees, a spokesman said.

The cost of the contract was not disclosed. According to Tata the contract is worth $120m (£60m) but a note from the company did not say how long it runs.

Tata subsequently asked that the figure not be used, but by then it had been published on the Internet and in media sources. Chrysler does not disclose contract terms as a matter of policy, but in this case said that the dollar value claimed by Tata was inaccurate, the car maker said.

A union at Chrysler, United Auto Workers Local 412, believes that Tata's role at the company will expand beyond this week's announcement. Last week, the union group claimed that foreign workers on H-1B visas were being trained on systems used by recently laid-off employees at its technical centre in Auburn Hills.


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