Tata Chemicals has outsourced its complete Information technology (IT) requirements under a 10-year arrangement to Tata Consultancy Services.

TCS will manage, operate and plan Tata Chemicals’ strategic IT initiatives. The MIS (Management Information Systems) staff of 20 from Tata Chemicals has been absorbed by TCS. Tata Honeywell has been awarded the contract for systems implementation.

Announcing this at a press conference in Mumbai, TCS officials said that the company will set up a program management office to maintain and support Tata Chemicals IT infrastructure and also manage all its vendor interactions.

Mr Prasad Menon, MD, Tata Chemicals said: "We want to IT-enable all processes. We expect a Rs 19-20 crore outgo in the next three years and expect savings to the same extent."

Mr Menon added that the initiative will straddle a gamut of functions within Tata Chemicals ranging from plant automation, cost reduction in raw materials, improving customer relationships and bringing about efficiencies in working capital utilisation.

Mr Ramadorai, CEO, TCS, said that the manufacturing practice will account for 20-22 per cent of his revenues this fiscal. He also added that he expected a 5 percentage point swing towards the offshore component in the revenues this fiscal. The company is looking to tap the Asia-Pacific and Latin American regions and has just opened an office to service that region.