TCS to Offer Managed Services to SMEs
Tata Consultancy Services (TCS) has always seen much potential in the SME segment. In December 2008, the company announced its plans to offer managed services to the mid-market segment in the country. Currently, it is planning to take this initiative to the next level.
In order to cater effectively to this burgeoning segment, the company spent almost a year working with selected SMEs in sectors such as retail, manufacturing, textiles and education. Currently, it is in the process of creating unique intellectual property (IP) based on the specific industry requirements.
Managing IT needs
Through this initiative, TCS aims to address the common IT needs of these businesses ' the necessary hardware and network as well as the common office-related software and business packages. It will also manage the company's total IT requirements, as well as advanced technologies like enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM).
'The service will allow SMEs to boost their overall IT infrastructure. They can also save 30'40% of their total IT expenditure,' said Anil Chandra, Business Development Manager at TCS.
Mr Chandra added that as it is a subscription-based model, the company will charge its users on a monthly basis.
'SMEs in sectors such as textiles, retail and education are not very organised when it comes to implementing IT solutions. As they operate on a stringent budget, they cannot afford a large IT team to upgrade and manage their technology needs,' said Naveen Athresh, Project Manager at Streamnet India, a Bengaluru-based mid-sized IT service provider.
Mr Athresh believes that the new initiative by TCS will help in boosting the productivity of smaller businesses in a systemised way.
Gaining customers
Currently, the company has roped in 50 customers for this initiative and is aiming to acquire 500 clients within the next 12 to18 months. 'We are mainly looking at partnering with medium-sized companies that spend approximately Rs 20 lakh on IT every year. We will also consider micro and small business customers in the near future,' said Mr Chandra.
For the managed services, TCS will have a 3-year contract with its customers that can be renewed on a yearly basis.
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