Volkswagen UK signs outsourcing deal with TCS

VolkswagenUK has signed a five year outsourcing deal with Tata Consultancy Services, as VW worldwide continues work to move to a single set of IT platforms.

Under the deal, TCS will manage the car manufacturer’s systems as it overhauls its IT in an attempt to drive more sales and reduce costs. It will provide onshore and offshore outsourcing.

VW, which also manufactures Audi, SEAT and Skoda cards, uses SAP ERP systems extensively around the globe, and is placing all its different offices and plants onto a single set of systems.

It is the first time VW has used a mixture of onshore and offshore resources for its IT systems. TCS has already begun work.

In the first week of TCS working on the VW systems, a power outage at the UK head office in Milton Keynes caused many of VW’s critical systems to fail, affecting sourcing of parts, as well as hitting marketing and distribution. The system outage, which began on Friday night, was resolved by Saturday morning in time for trading, by TCS’ UK and India teams.

Nick Gaines, group IT director at VW UK, said “we couldn’t have better proof” that the systems were protected under the new deal.

Copyright © 2009 IDG Communications, Inc.

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