PE buys $360 million stake in Tata Technologies; engineering services outsourcing expands to more high-end strategic work
Engineering Staffing Report
PE buys $360 million stake in Tata Technologies; engineering services outsourcing expands to more high-end strategic work
Main content
Private equity firm Warburg Pincus is investing about $360 million for an approximately 43% stake in IT services firm Tata Technologies Ltd. The move comes as the outsourcing market has expanded from staff augmentation to more strategic work, according to Tata Technologies CEO and MD Warren Harris.
“As the engineering services outsourcing market has matured from cost arbitrage and staff augmentation to increasingly high-end strategic work, Tata Technologies has been there leading the change,” Harris said in a statement. “With the perspective and insights that Warburg Pincus offers as a premier global private equity firm, we are confident we will not only continue moving up the value chain, but materially accelerate our growth journey.”
Tata Technologies is an engineering services and product development IT company with more than 8,500 employees in 23 countries.
Warburg Pincus is acquiring the stake from Tata Motors Ltd., the parent company of Jaguar Land Rover, and its subsidiary Sheba Properties Ltd. Warburg Pincus is based in New York and has more than $40 billion in private equity assets under management.