Bengaluru: Boeing will transition a significant part of its engineering centre capabilities in Bengaluru to select IT services companies. The US aircraft manufacturer is outsourcing infrastructure services to Dell. This could involve some employees at the Boeing India Engineering and Technology Centre (BIETC) in Bengaluru moving to Dell, sources told TOI.
This is part of the global move, announced earlier this year by Boeing, wherein it will outsource cloud services and databases to Dell in a six-year deal that would eliminate 600 jobs.
TCS, HCL and IBM are said to be in the fray for Boeing’s applications business. The multi-year deal on infrastructure services and applications business could be valued at around $150-$200 million, sources said. When TOI contacted Boeing on the matter, it said it doesn’t have any comment to offer. Dell and TCS too declined to comment. An email sent to IBM and HCL did not elicit a response till the time of going to print.
BIETC in Bengaluru and Chennai is said to have over 3,000 engineers, working in the areas of mechanical, electrical and electronic engineering for current and future aircraft. They work on programmes related to avionics software applications, data science & analytics, enterprise systems, flight & vehicle technologies, platform systems and R&D.
Last year, Rolls-Royce moved a significant part of its engineering centre capabilities for civil aerospace in Bengaluru to Infosys. Earlier this year, Wipro was chosen as a strategic technology services partner by Fiat Chrysler Automobiles (FCA) as part of which it set up a global digital hub in Hyderabad. This digital hub will support FCA’s information and communication technology operations, and Wipro is expected to build a talent pool of more than 1,000 skilled consultants and technologists for the initiative.
Pareekh Jain, founder of engineering services advisory Pareekh Consulting, said there are several large deals in the automotive and aerospace businesses because enterprises are responding to changes in their business environment. He said the three main drivers are cost take-out, M&A consolidation, and investment in new technologies cost-effectively.
“Some of the large deals in the last couple of years, both in IT and engineering, such as TCS-GM, Wipro-Marelli, Rolls-Royce-Infosys, BMW-KPIT, Daimler-Infosys, Airbus-HCL, Spirit AeroSystems-Infosys, are due to these drivers. In large deals, enterprises prefer to work with existing service providers as it gives them comfort and de-risks them to some extent for any negative surprises. In almost all the above large deals, one of the incumbents was selected,” he said.
Article: Boeing’s six-year deal with Dell will eliminate 600 jobs