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|June 4, 1997||
TISL plans major restructuringDiscussions are on between the Tata group and IBM to restructure Tata Information Systems Limited. The Tatas and IBM have a 50 per cent stake each in TISL.
The financial restructuring will, however, affect only the software and services section of TISL, not the hardware unit. Officials claim that the hardware section does not need restructuring.
An official said that TISL had stressed on hardware when it started off in 1992, later it concentrated on systems support and now, on services, which have earned TISL 25 per cent of its turnover. IBM, by itself, makes $76 billion or 34 per cent of its turnover, in services.
The collaboration plans to have the software and services contributing more to the overall turnover than hardware and systems support. But, the official said, this is unlikely to happen for at least the next three years, because the hardware business now is growing at about the same rate as software and services.
Over the next three years, the company plans to have more centres to develop software and set up one by 1998 either at Gurgaon (Haryana) or Noida (Uttar Pradesh). TISL is considering setting up a software development centre at Pune. It has just one unit now, employing 40 people and catering to both the domestic and the export market.
TISL plans to raise its number of employees from the current 800 (600 of them in Bangalore) to 4,000 by the end of the millennium. It is also considering setting up software centres in Hyderabad and Bhubaneshwar.
TISL is still a small player in the information technology service industry, with just a 2 per cent share. The official said the company aims to increase its share to 5 per cent by 2001 with most of the revenue coming in from software and services.
The company has made many contracts for maintenance, service and education. No more hardware units would be established, he said. Currently, equipment is being imported.
- Compiled from the Indian media
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