CMC repositions itself with an eye on global markets
Deccan Chronicle, January 6, 2006

Hyderabad: CMC Ltd., a subsidiary of Tata Consultancy Services Ltd., has launched an exercise to position itself as a software services and consulting company, with more focus on international operations than on the Indian government sector, where it has had a stranglehold for more than 30 years, Ramanathan Ramanan, the company's managing director and CEO, said on Thursday.

Speaking to this correspondent, Mr. Ramanan said CMC Ltd, expects to complete the repositioning of the company in the next 12 months. "We will be focusing a lot more on the global market, and working closely with TCS in the markets where it is strong," Mr. Ramanan said.

However, he added that though there were a lot of synergies between the two companies, CMC would be leveraging its expertise in embedded software.

"We have built this expertise over the years, and now have over 500 engineers specializing in embedded software," he said. But the company will still be seeking government contracts. "After IBM was asked to leave India in the late seventies, CMC Ltd., then owned by the government, stepped in to keep the government's computers functioning. That led to CMC having a strong presence in government contracts, but then such contracts only to go to the L1, or lowest, bidder, leading to heavy competition, and low rates.

We believe that there are more opportunities as a software services and consulting services provider in foreign markets," Mr. Ramanan said.