Tata Infotech to capitalise on different capabilities
By siliconindia   |   Friday, 29 August 2003, 19:30 IST
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MUMBAI: Tata Infotech plans to capitalise on different capabilities of system integration, manufacturing and education services to achieve profitable growth but expects to face a challenge in maintaining its position from increasing pressure on margins in domestic operations with many entities shifting their focus to India. The company's continuing focus on human resources in the knowledge intensive business would help it to create and retain critical skills and scale up to meet market demand, Tata Infotech said in its annual report for 2002-03. On the challenges, it said some of these include setting up of shop in India by global system integration developers, increasing gravitation of business towards the big five Indian software organisations as preferred vendors as compared with smaller vendors like Tata Infotech and changing demands of customers in both domestic and international markets. The major areas of concern in the international markets are the increasing non-tariff barriers in the largest market, the USA, and in Europe on movement of employees, which have resulted in slowing down the pace of Indian IT players, the Tata group entity added. Referring to manufacturing sector, it said the demand for niche offerings for the electro-mechanical product offerings and contract manufacturing services was expected to increase. Tata Infotech, on education sector, said it would continue to consolidate operations, cut costs and focus efforts of affiliates towards corporate training as a mean to become profitable

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