TCS bags another deal with Volkswagen

Tata Consultancy Services has bagged an IT outsourcing contract to service automaker Volkswagen in Germany, according to a report. Under the contract, TCS will develop new applications that would help VW reduce the time to market its new cars and enhance the car buying experience for the customer.

This is the second engagement that TCS has bagged from the German company. Earlier this year, it bagged a five-year IT outsourcing deal with Volkswagen Group UK. The new contract has been signed with Volkswagen AG, the parent company of the Volkswagen Group.

"It is a new piece of development work which is specifically targeted at the new products that VW intends to launch. This initiative also gives its customers the ability to configure their online needs," A S Lakshminarayanan, vice-president and head, Europe of TCS, told Sify Business Line.

Lakshminarayanan said that the deal had already gone ''live''. However, he did not give the financial details.

Meanwhile, shares of Tata Consultancy soared more than 15 per cent on Monday to their highest in more than a year after the outsourcer posted better-than-expected quarterly results.

The company beat street expectations by posting a 22 per cent rise in quarterly profit late on Friday, but said the business environment remained weak and there was pressure on fees due to the global economic downturn.

The company's revenue income rose 12 per cent to Rs7,207 crore during the first quarter of the year.