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Tata Infotech to set up training centres abroad Times of India - June 25, 2001

Mumbai: Tata Infotech plans to expand its education business by setting up training centres in overseas markets. It has charted out an expansion blueprint under which Tata Infotech will partner with 30 affiliates to expand its training business.

Tata Infotech managing director, Nirmal Jain, said, "We already have centres in the SAARC region. Now we will increase focus on new markets like South Africa, Thailand, vietnam and other SAARC countries like Myanmar and Sri Lanka. China could also be a potential growth area for us and we will explore possibilities of entering the market."

Tata Infotech has also completed the restructuring of its training and education business. Under its new business model, the company has moved to a 'partnership model' under which it is the dominant partner. "We have changed the affiliate model and moved to a partnership model under which we will provide the faculty, management input as well as course content," Mr. Jain explained.

As a result, it has also increased the number of its training centres. In the month of May alone, it has signed in 12 new centres, taking the total tally of centres to 214. Out of these,177 are operational while the balance 37 centres are ready to be operational and would commence "soon". Currently it has three operational overseas centres, while seven new ones have been signed in May. The company had allocated about Rs.60 crore to revamp the training business.

As result of the expansion, Tata Infotech has been steadily adding more employees to its fold. Tata Infotech could add up to 300 employees to its rolls this financial year, taking its employee strength from 3,700 to 4,000. Mr. Jain, however, did not reveal the capital expenditure plans for this year.

Tata Infotech has pinned hopes on the training and education business to increase its profitability. "The US slowdown has definitely had an impact on the software exports business as some customers are going slow on new projects or are deferring business decisions. Last year we added 50 new customers, but right now we are trying to push for new business and retain old clients. This year, we expect the education and training business to grow faster than other business units," Mr. Jain said.

Software exports account for 55 per cent of Tata Infotech's revenues, while domestic business contributes 30 per cent and the education division along with hardware business accounts for the rest. Mr. Jain refused to project the expected growth rate of each segment as "this and the next quarter will determine the direction," he said.