Tata Consultancy Services on Monday opened a $20 million delivery and software development centre at Milford, Cincinnati, in Ohio.
Software giant aims to cut dependence on Bangalore and Mumbai
CINCINNATI (Ohio): Tata Consultancy Services on Monday opened a $20 million delivery and software development centre at Milford, Cincinnati, in Ohio — in an apparent bid to reduce shipping work outside the US and win federal contracts.
The new facility will employ only a handful of Indian “process people”. It will mostly rely on local talent.
TCS chief S Ramadorai told DNA Money: “There is a limit to how much we can make do with H-1 B visa workers. This facility will ramp up to 1,000 professionals. There will be a good mix of freshmen and we will do a lot of lateral hires for our global consulting business.”
It has built 50 offices in the US to be near its biggest customers and now it is taking on the big boys from the Silicon Valley in hiring the best from Ivy League colleges. TCS has 15,000 employees in North America. “We can call this reverse outsourcing. In these difficult times we are very happy that TCS has decided to make this significant investment and create jobs,” said Ohio Governor Ted Strickland.
The new facility will also help what some major Indian service providers are chasing — defence and avionics work.
TCS is reportedly in talks with Boeing and Lockheed Martin for defence and aerospace contracts held by those companies. This work can only be done in the US by American citizens or green card holders.
The second floor of the new 200,000 sq ft facility in Milford is export-controlled. In keeping with US guidelines, TCS has physical and network segregation in place at the centre. This section is walled-off from the orange bean bag-filled ideation rooms and humming labs.
“In future we may work on classified government projects. We are already on projects related to unemployment insurance for the states of Nebraska, New Mexico and Missipppi,” said a TCS official. “Any work that concerns personal data can’t be taken out of the US,” he added.
“We are cautiously optimistic. Cautious because of what is obviously going on in the market and optimistic because the number of large projects that we are being awarded is well above what we have been awarded in past,” Michael McCabe, spokesman for TCS, North America, told DNA Money.
TCS recently won a $1.2 billion IT and operations support deal from The Nielsen Company. It also landed a $35 million contract from Eli Lilly to provide drug development services three months ago. The new facility will service Nielson Company and US banks who are looking to outsource everything that they can send down a wire to India.
“The banks have been asking us how we can help them become more efficient. Once things settle there is a significant upside for us,” said S Sambamurthy, client partner, banking and financial services, TCS.
uttara.choudhury@gmail.com
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