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Indian IT drives car technology

When IT industry is booming and most sectors from manufacturing and to marketing are getting a piece of pie, how can the IT sector people be far?
The embedded technology has revolutionized the automotive world. And Indian IT sector has been in the forefront of the new technologies in car over the last decade. Some of the Indian companies who are actively involved in creating technology for cars are Tata Consultancy Services, Satyam, Infosys, KPIT Cummins Info systems and IBM India. The services range from back end support to the being involved in development of new technology.

World’s car giants General Motors, Toyota, Ford, Daimler which manufactures Mercedes-Benz and BMW, are learnt to spend a sizeable chunk of their revenues on  up gradation and development of software of their cars. They also source software solutions for their supply chains, improving manufacturing, sales and marketing and distribution network and others.

The global automotive IT market, driven by technology for cars, easily touches $15 billion. It is know that companies like Ford, General Motors, Mercedes makers Daimler and BMW annually spend a minimum of $2billion on software for their cars. Apart from OEM companies the support industries like component manufacturers, dealers and suppliers spend a substantial amount of their revenue on gaining software for their departments.

The Tata Consultancy Services, head of global marketing Mr Jayant Pendharkar said “the automotive sector gives a lot of scope for growth of Indian IT companies. The market in automotive software is very huge. The company already has four big players from car industry in this sector and more companies are showing interest.”

TCS is gaining at least 15 percent of its revenue from automotive sector. Apart from this it was also involved in providing engineering support services to Ferrari in developing its new F1 car. Former Daimler partner Chrysler has signed a contract worth several millions dollars for providing application maintenance and support service to the company. This is enough to show the scope of the sector.

It is not only TCS it also Satyam Computer Services has set up a separate division in Chennai to cater to research and development for automotive sector. It is dedicated to assisting car companies in developing cars run n alternative fuels; hybrid engines; virtual test drives solutions and in-car entertainment. It has also sought local partner in designing and testing of vehicles.

USA has been the biggest contributor to this sector so far. It has been the largest market for several IT companies in India, while the Asia Pacific region is slowly but steadily growing in market size. Among European countries France auto sector is responding favorably to Indian automotive software solutions, while Germany is yet to open up.

The main areas in which technology is flowing to Indian IT sector has been in designing, engineering support services and  research and development. The IT in car technology is growing at the rate of 50-60 percent annually till March 2008.

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