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Media Reports
Tata Infotech Limited plans to set up 850 education centers both in India and overseas by 2004. 100 of these centers will be set up overseas mostly in South Asia, Middle East, South Africa and South America. Mr Rahul Thapan, head, education services division, Tata Infotech, explained that for the current financial year, the company which already has 10 centers overseas, plans on increasing this to 25 and in the domestic market where they have 250 centers, they plan on increasing it to 400. Mr Thapan added that the company has already allocated Rs 50-60 crore for the expansion plan for the current financial year. He explained that there are three business models in place and depending on the regions where they are located the centers would follow either of them. The first model is the franchisee model where the fanchisees will pay Tata Infotech a license fee. The second model is a tie-up with a university or a college where the infrastructure would be provided to Tata Infotech. This would be a revenue sharing agreement. In the third model, Tata Infotech would work with the local training provider who would offer training in areas where Tata Infotech may not have the expertise. The training provider would then be able to leverage this partnership.
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