Tata Consultancy Services is working on several larger Internet-of-Things-based deals after securing Rolls-Royce as a marquee IoT client
Tata Consultancy Services (TCS) is working on several larger Internet-of-Things-based deals after securing Rolls-Royce as a marquee IoT client. Many of these deals are in the exploratory phase as the technology begins to gain traction, the head of the IoT business told ET.
Internet-of-Things is a small but fast-growing business for Indian IT services companies. In February, TCS broke out several such businesses into separate units to help them accelerate growth. It named Regu Ayyaswamy, who heads its engineering R&D business, global head of IoT.
“The industry is still in an exploratory phase but you will always find customers who are agile and disruptive and we are working with them to put the organisation and technology together,” Ayyaswamy said. “There are several deals we are working on that will start to scale from next year. It won’t go from zero-to-100, but they will start to scale.”
He added that the IoT unit, which was created in February, was growing much faster than the rest of the company. The deal with Rolls-Royce will see TCS use sensors and data analytics to help the British enginemaker provide better predictive maintenance to its customers.
Mumbai-based TCS is also finding clients in its own backyard. Last year, TCS used its connected universe platform to hook up its own air-conditioners, chillers and door-access points to cut wastage of electricity if there were no people in those areas of the company’s 115 buildings.
ET had reported that although TCS increased the seating capacity 15% that year, it held electricity costs flat. The company is now selling the solution to other clients. “Already, on this energy management solution, we are running about 18 pilots in different stages. We are working with some of our own Tata Group companies like Tata Steel on this,” Ayyaswamy said.
TCS is still experimenting with business models for IoT deals. On energy management, the company can be paid a percentage of the energy saved, it could sell the solution based on the number of assets or sensors involved or offer a flat enterprise licence for clients.
“The reason this is still in the exploratory phase is because this isn’t something a company can just put in and get internal efficiencies. This is about the client changing their business model to service their end-customer better,” he said.
Unlike other Internet-of-Things offerings such as General Electric’s Predix, TCS combines its services and vertical-based solutions with the platform. The company also has use-cases in consumer goods, connected cars, smart cities and industrial robotics.
Ayyaswamy said TCS was still building out its capabilities in the technology and had created special labs to craft solutions for specific verticals.