Tata Consultancy Services (TCS), the IT side of the huge India-based Tata empire, is looking for a New Zealand development partner.
TCS last year signed a deal with Wellington-based Sustema, the latter providing project management services for local developments performed by imported TCS staff. The yet-to-be selected new partner will be active in local software development and other front-line IT services.TCS has a “short-short-list” of three candidates and expects to make a final decision this quarter, says Melbourne-based TCS adviser Ted Johnson (pictured).
The local partner will benefit from the backing of a large consultancy, with 22,000 front-line IT staff, enabling it to tackle major projects, while TCS will gain the strength of local knowledge and reputation.
New Zealand customers today have “an absolute focus on cost containment”, he says.
“Cost comes first, after that functionality and then quality.”
But these priorities are cyclical and there are signs that functionality is rising in importance. But an emphasis on containing development cost is good for an external supplier of resources like TCS.
Johnson describes TCS as an “insourcer”, because its work is typically performed on the customer’s premises and under the customer’s control.
One of TCS’s flagship New Zealand clients is what Johnson insists on calling simply a major government department. It is an open secret that it’s the Ministry of Social Development.
Rumours have been circulating that MSD is winding down its involvement with TCS.
While contriving still not to mention the name, Johnson says the speculation is off the mark.
“That’s certainly not true; in fact we’re growing our business with that department,” he says.