Mumbai: India’s largest software exporter Tata Consultancy Services on Tuesday signed a multi-million dollar contract to assist Italy’s Ducati Motor Holding in better asset management and vastly improve business efficiency.
“We have entered into a strategic partnership with Ducati to offer our technology services to the bike maker,” TCS CEO and MD S Ramadorai told reporters.
As a first step of the strategic partnership, TCS would implement Enterprise Resource Planning for Ducati and its subsidiaries in Europe, he said.
The objective of this project is to drive quantum improvements in supply chain management, especially in the areas of forecasts, inventory levels and optimised production plans and overall reduced logistics costs, he said.
The execution of the multi-million dollar contract is spread over many years, but the company did not assign any size to the deal or the number of years.
This partnership would help Ducati in improving the customer responsiveness and business efficiency, Ducati CEO and president Gabriele Del Torchio said.
This partnership is not only about cutting cost, but better asset utilisation, he said.
“With TCS as its tech partner, Ducati’s ability to respond to customers and react to the evolving business environment will increase and help them to effectively use TCS’ talent and expertise to boost their presence globally,” Ramadorai said.
Before TCS, Ducati had American companies as its IT partner.
”We believe that TCS is the right partner to help us set up a strong company platform that will help us reach the next level in terms of company competitiveness and results in today’s global market,“ Torchio said.
TCS also serves other Italian auto major Ferrari. Seeing TCS’ work with Ferrari, Ducati decided to go ahead with this partnership, Torchio said.
Late last year, Ferrari announced that it would carry the Tata logo on its F1 cars in 2009 season.
As of now, both the TCS and Ducati are concentrating on the ERP implementation. “We have to demonstrate our capability. Associating with a global player enhances the reputation of TCS,” Ramadorai said.
Besides Ferrari and Ducati, TCS is working ‘Big Three’ automakers in the US. They are General Motors, Ford and Chrysler. Automakers in the US have asked the government for a $25 billion bailout package for the ailing auto industry.