Tata Motors has roped in subsidiary Tata Technologies to optimise its capabilities and also accelerate new product development, thereby shifting from what was a just a staffing engagement to an outcome-based model.

The two companies signed a five-year agreement called Engagenext iSourcing, which redefines the existing relationship between them and takes their association to the next level.

“(Till today), the relationship between Tata Technologies and Tata Motors was essentially people-based and although it has grown exponentially over the last 20 years, the engagement model itself had not really changed,” said Warren Harris, CEO and MD, Tata Technologies.

“When you have got just a people-based relationship, your ability to contribute is dependent upon just the people you place into the account. What we have now is a deliverable-based agreement that allows us to change the teams on a regular basis,” Harris said, adding that this will allow them to be much more inclusive and contribute more value.

“We work with some of the more progressive OEMs in the automotive engineering space and whilst we are bound by confidentiality agreements and fiercely protect IP, what we were not being able to do was capitalise upon that experience and make it available to Tata Motors,” he said.

“This is an opportunity for us to exert much more control and ownership over how we deliver, a car design or a solution to a particular technology challenge,” he explained.

At present, globally Tata Tech has seven active vehicle programmes for five different OEMs including one electric SUV and four passenger vehicles across segments.

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