Thread: Chrysler to outsource hundreds of computer jobs

Chrysler to outsource hundreds of computer jobs

By TIM HIGGINS • FREE PRESS BUSINESS WRITER • April 2, 2008

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Several hundred computer workers at Chrysler LLC will lose their jobs in a move announced today by the automaker to outsource computer system support and maintenance.


Chrysler information technology workers were told today that the company has signed agreements with Tata Consultancy Services and Computer Sciences Corp. for the firms to maintain and support mainframe, servers and corporate computer applications, Jan Bertsch, Chrysler vice president and chief information officer, told the Free Press in an interview.

"This is not just putting work with another supplier to reduce cost, we thought a year ago that rather than try to cost-cut continually over time, we wanted to step back and look at our business and say, ‘Where do we really need to move to service our customers better?'" Bertsch said. "What we determined was that we were spending too much of our base budget on core maintenance of our systems and not enough in reinvesting in our business."

Bertsch declined to say how much money the move will save the automaker other than to say, "We would have never embarked on this scale of a project had the savings not been substantial."

Chrysler is beginning immediately on the project and hopes to have it done by the end of the third quarter.

The automaker has about 2,100 people handling the work presently -- of which around 1,000 are full-time Chrysler employees and the rest are supplemental workers on contract.

About 20% -- about 200 -- of the 1,000 full-time employees will lose their jobs because of the change, she said.

The company is not saying how many of the supplemental contract workers will lose their jobs in the switchover other than to indicate it will be several hundred. "It won't be the entire group but it will be more substantial than the salaried," she said.

"Some people will stay, some people will leave and some people will be interviewing with the new provider and perhaps be offered a position with them," she added.

Chrysler officials wouldn't say how much money the new providers will pay.

Chrysler has already had a relationship with Tata. Earlier this year, Chrysler signed a new deal with Tata to do computer work in sales, marketing and shared services as part of a multiyear contract reportedly worth $120 million.

Contact TIM HIGGINS at 313-222-8784 or thiggins@freepress.com.

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Tata Consultancy Services is one of the world's leading computer software companies . The main focus of Tata Consultancy Sevices is on helping the global organizations to meet their business challenges effectively and it does so with the help of its Global Network Delivery Model, Innovation Network and Solution Accelerators. It helps in keeping organizations updated with the new technology. The clientele of Tata Consultancy Services includes seven of the top ten corporations in the Fortune 500 list of the largest corporations in the United States.

The company continues to invest in processes, people and new technologies which provide a cutting edge to its customers over their competitors. With the help of inputs from innovation labs and academic alliances and from the expertise of key partners, Tata Consultancy Services ensures in keeping the client updated. The key business assets which makes TCS one the top software companies are


The company TCS is listed in National Stock Exchange and Bombay Stock Exchange in India. It comprises 74,000 professionals spread across more than 50 global delivery centers. Thus, indeed TCS is one of the top software companies in the world.

This site contains information about Tata Consultancy Sevices which is one of the top software companies in the world.

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Tata Consultancy Services is one of the companies that are in the Tata Group which was founded in the 1800s as an importer of textiles and exporter of opium. The Tata family left the opium business and expanded in Indian textiles and then in steel. The current head of the business is Dr. Ratan Tata who has recently purchased Jaguar and Land Rover auto companies from Ford. Ford is still a contractual supplier of engines to Jaguar and Land Rover. This Chrysler Tata contract makes for an interesting situation.

Richard wrote:

Tata Consultancy Services is one of the companies that are in the Tata Group which was founded in the 1800s as an importer of textiles and exporter of opium. The Tata family left the opium business and expanded in Indian textiles and then in steel. The current head of the business is Dr. Ratan Tata who has recently purchased Jaguar and Land Rover auto companies from Ford. Ford is still a contractual supplier of engines to Jaguar and Land Rover. This Chrysler Tata contract makes for an interesting situation.

Thank you for the information Richard--it is interesting that Ford, Jaguar, Land Rover and now Chrysler (weak tie, but just the beginning?) are all inter connected in some manner.