Friday, August 19, 2005

Tata motors acquires INCAT

Tata motors has made a cash offer to acquire INCAT, a UK based engineering technology concern. Financial express reports that it is a design firm ...Tata Motors’ bid to acquire Incat is in line with the trend among global car majors to design their cars inhouse....

The INCAT website says

"We build long term relationships with clients, helping them apply technology creatively and use information to optimize their product realization process. Founded in 1989, and headquartered in London and Detroit, INCAT has more than 600 employees working with Fortune 500 and other organizations in North America, Europe and the Pacific Rim."

Businessline seems to have got it better
...According to it, the offshore capabilities of TTL in the field of engineering automation services combined with the high-end onshore strengths of INCAT was expected to offer a strong and seamless onshore/offshore delivery capability to customers...

It is worth noting that this acquisition is being done by and for Tata Motors and not by a technology major (yes, the subsidiary is a technology company). INCAT seems to be more of technology focussed company and not design, and there is Product Lifecycle Management expertise too.

These sort of deals seem to be next step in offshoring. Indian entities create bases in other countries (Infosys - Expert systems Australia, Wipro -Nervewire and others) to take their operations closer to the clients they serve. This is a space worth watching.

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