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Mr Mitchell Habib, CIO, GE Medical Systems, addressing a press conference in Mumbai on Wednesday.

MUMBAI, April 2

TATA Consultancy Services (TCS) has said that it is in talks with GE Medical Systems (GEMS) to renew its current multi-million dollar e-business contract to provide a complete range of solutions and services.

The two companies were expected to close the deal in the next 30 days with the exact parameters of the new contract, including the value, being worked out within that period, said Mr Mitchell Habib, CIO, GEMS, at a select press briefing held here on Wednesday. "The contract is likely to be spread over a period four to five years," he added.

The current contract, which is expected to be end by mid next year, was signed in January 2002 and was valued at $100 million. "This amount was increased to $120 million in June 2002 of which $40 million was consumed last year. By the end of this year, i.e December 2003, we expect another $50 million to be consumed," said Mr Habib. The original contract was for about 60 months, but was expected to be completed within 30 months.

According to Mr Habib, the companies worked on a `take or pay' model wherein GEMS committed a particular amount as part of a contract irrespective of the work done by TCS. "TCS is the largest vendor for GEMS in India, followed by Mascot systems. In fact, we have been able to achieve 50 per cent savings through outsourcing to TCS alone," Mr Habib said.

Mr S. Ramadorai, CEO of TCS, said, "The GE Group is the biggest client for TCS with GEMS topping the list. This association is a continuation of our long-standing relationship with GE and expect this contract to be a mutually learning and rewarding experience for both companies." Currently, there were about a 1,000 TCS professionals working on the GEMS contract, Mr Ramadorai said. He gave no indications on the manpower ramp-up expected in the near future. Asked if GE was likely to pick up a strategic stake in the company, Mr Ramadorai said, "There are no such plans as of now and nothing to this effect is being discussed."

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