An agreement by Tata Consultancy Services (TCSNSE -1.44 %) to take over 1,300 employees from GM’s technical centre in India could spur a wave of similar deals in the automotive research and development space, analysts said, as carmakers shift focus to autonomous vehicles and look to outsource legacy work.
“Automakers need to focus on going autonomous, so that’s like going up the value chain. They must hire skills for autonomous and not waste precious resources on traditional technology,” said Sanchit Vir Gogia, CEO, Greyhound Research.
Analysts said the TCS-GM deal could be valued even higher with recurring revenue components.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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