Engineering services and product development IT services provider Tata Technologies is in expansion mode. From investing in new offices in China and the UK, divesting non-core businesses to a few acquisitions starting this month, its CEO and MD, Warren Harris, is leading some major moves for the company to enter a new phase of growth. Sumantra B Barooah met up with him for an exclusive interview. Some excerpts.
Being a subsidiary of Tata Motors, Tata Technologies has always earned a huge slice of the overall business from the parent. Where does the captive : non-captive business ratio stand now, and how is it progressing?
We have been fortunate in that the relationship with Tata Motors and perhaps, more importantly, recently the relationship with Jaguar and Land Rover has allowed us to incubate a lot of capability that we have been able to prove and mature within a very supportive environment.
If you look at the business mix today, in the last 12 months, in constant currency terms, we have grown the non-captive services business by over 42 percent. We have managed to improve our average deal size. Traditionally, before we made the push into non-captive, our non-captive deals were hundreds of thousands of dollars.
Now, typically the deals that we are winning outside of JLR and Tata Motors are over 3-5 million dollars and there is a couple of deals that we have won in the last 12 months that have been in excess of 25 million dollars. So these represent complete programmes that have been given to Tata Technologies that we are managing through a combination of onshore and offshore teams.
Has the non-captive business gone past the 50 percent mark for the first time?
The non-captive business is now more that 50 percent of our overall business. On services, we are getting close to 50-50 in terms of captive and non-captive. I expect in the first quarter of the next fiscal year (2017-18), because of the growth rate that we have got on noncaptive, we are going to have a bigger non-captive business than we have a captive business.
This story is from the April 15, 2017 edition of Autocar Professional.
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This story is from the April 15, 2017 edition of Autocar Professional.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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