Tata Motors and Tata Technologies have announced EngageNext iSourcing, a five year agreement which is claimed to improve mutual strengths and capabilities while providing career benefits to employees of both entities.
As per the new agreement, employees of Tata Technologies who are working on Tata Motors programs across all locations in India will shift to a delivery-based model instead of the existing staff-augmentation model. This change recognizes the technology firm’s expertise when it comes to execution of major automotive programs including whole vehicle development.
The companies say that, the agreement will “optimize mutual capabilities and realize cost efficiencies, streamlined workflows and accelerated development cycles for Tata Motors’ R&D Division”. Though this partnership, Tata Motors Engineering Research Centre (ERC) would be able to focus more on key areas, thereby supporting the automaker’s next phase of business development.
The new work flow model clearly defines roles to avoid duplication of work, deliver on mutually agreed engineering activities, promote better utilization of employees, and to plan investment.
Dr. Tim Leverton, President and Head – Advanced and Product Engineering, Tata Motors said:
EngageNext iSourcing will play a critical role in Tata Motors’ R&D transformation journey to deliver innovative world class products to market. Through this model, Tata Technologies will be responsible for delivery against clearly-defined performance metrics in terms of quality, cost and timeliness.