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TCS, CMC bag Rs 840-million US order

BS Bureau in Hyderabad

The synergy between Tata Consultancy Services and CMC seems to have started paying off with the duo bagging a Rs 84 crore (Rs 840 million) contract from a US county for outsourcing IT services.

The contract was won by Baton Rouge International, a wholly owned subsidiary of CMC in the US.

The two companies together have also won contracts ranging between $2 million and $19 million in the UK, the US, Malaysia, South East Asia and the Middle East over the past few months, especially in the port and cargo management solutions arena.

"We are working together in the ports and infrastructure maintenance services segment, both in the domestic and international markets. TCS's application management skills combined with our core competency in infrastructure verticals are enabling us to provide complete turnkey solutions to our customers," S S Ghosh, managing director and CEO of CMC said, at a press conference here after the 26th annual general meeting.

Commenting on the integration process between the two organisations, R Ramanan, chief operating officer of CMC, said the integration was happening at three levels - business processes, internal systems, and marketing and business development.

"Since TCS has 15 divisions that are rated SEI CMM Level 5, we sought their help to achieve the same level of rating at all five regions of CMC," he said.

CMC's western region has already achieved Level 4 rating, and the company has set a time-frame of 12 to 18 months to achieve higher level rating at all the regions.

Earlier, S Ramadorai, chairman of TCS, said the company is hoping to meet Nasscom's forecast of 30 per cent growth in IT exports in the current year, and 21 per cent compounded annual growth rate in domestic market for the next five years.

Meanwhile, the central government has decided to disinvest 6.31 per cent of its equity stake in favour of employees of the company, with a lock-in period of one year, Ramadorai said.

Last fiscal, TCS, a division of Tata Sons, acquired a 51 per cent stake in CMC, which has a capital base of Rs 15.1 crore (Rs 151 million).

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