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Media Reports
TATA INFOTECH Ltd (TIL), part of the Tata Group, is toying with the idea of converting its major divisions into four separate profit centres in the form of system integration, products, education and manufacturing division. There are, however, no plans to hive off divisions into independent companies or subsidiaries. "We are thinking of making each division a separate profit centre internally. The idea is to bring internal synergy and focus on 4 major areas. We are working out the modalities," Tata Infotech managing director Nirmal Jain told The Hindustan Times. Ever since Tata Infotech got hit by sudden decline in overseas business from its alliance partner Unisys, it has been through many transitions. "The idea is to concentrate on each of the business segments and build our own customer base," said Jain. The four major divisions of TIL are system integration, products, education and manufacturing division. The largest revenue stream is system integration, which forms both domestic and international market. The company is recognized as the leading system integrator in India and offers software services globally across vertical sectors such as banking, finance and insurance, telecom, convergent industries, government defence etc. "The domestic system integration business is performing very well," said Jain. The product division is primarily for development of products. It focuses on areas like e-mail, telephone banking, voice mail, signature verification, and document processing and info-kiosk systems. The third division is education and offers content development, courseware delivery, including e-commerce, computer-based training, web and class room teaching. In metro cities, the divisions not only provide courseware and other technological inputs but also trained faculty members. The division has 47 centres in the premium cities (including mini metro cities), 33 authorized training centres in non-metro areas and 21 professional learning centres offering computer based training. The fourth business is hardware manufacturing business. The company manufactures hardware on a contract basis.
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