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TCS, Satyam bag $145 mn deals from Qantas

TCS announced the acquisition of Australian firm TCSM, reports Venkatesh Ganesh and Anusha Subramanian.

india Updated: Nov 09, 2006 21:09 IST

The country's software leader Tata Consultancy Services (TCS) and No. 4 player Satyam Computer Services said on Thursday that they won large information technology orders totalling about Rs. 645 crore ( $145 million) between the two companies.

TCS, which on Wednesday announced the acquisition of Australian firm TCSM, said its $90 million deal, the largest single contract to come out of Australia for an Indian IT company, would cover seven years and involve an addition of 220 employees to its Chennai operations. Its deal is to provide a range of IT applications, transformation and maintenance services.

TCS said in a statement that it will provide support and maintenance to Qantas' internal IT systems and external-facing applications such as e-ticketing.

Also, TCS will assume full responsibility for more than 75 per cent of Qantas' application, service and transformation programme. Other services include integrated IT and back-office services for the airline.

S Ramadorai, TCS's Managing Director told Hindustan Times, said Qantas would be transformed by his company's intervention.

"We believe technology has a strong role to play in enabling the travel and hospitality sector companies to retain customers and build new business models," he said.

Hyderabad-based Satyam, whose deal is worth $45 million, won another part of the Qantas deal, which came on top of another contract with the airline announced last August, involving the e-business suite made by Oracle.

Satyam has specialists who install, implement and support software made by companies such as Oracle.

"This partnership calls for Satyam to further enhance Qantas's operational efficiency and with our experience,...we look forward to expanding this relationship for any IT application development project in the future with Qantas," said Virender Aggarwal, Satyam's senior vice-president for Asia-Pacific.

TCS has about 40 clients in the travel and hospitality sector and works with many global aviation clients.

In the last six months, global aviation majors have been stepping up outsourcing to Indian companies.

Worldwide, the rise of the Internet and the convenience and flexibility that it provides for customers and partners through a host of facilities including computer networks, mobile phones and sophisticated software is driving demand for business transformation.

India, apart from being a centre to develop and maintain software and customised applications suited for each airline, is also a business process outsourcing (BPO) destination which can provide ticketing agents and other back-office staff.

WNS Holdings, spun off from a captive unit of British Airways, is a key independent player in the field specialising in the travel industry. It recently had a successful initial public offer of shares on the New York Stock Exchange.

In March this year, Pune-based Kale Consultancy bagged two contracts each from British Midland Airways, UK’s second largest carrier, for the implementation of revenue accounting solutions. and one from Air Mauritius.

First Published: Nov 09, 2006 21:09 IST