CA Technologies (CA) was recently selected by Tata Steel for streamlining the process of innovation of new steel solutions.

CA provides IT solutions to the steel companies across the globe. Tata Steel is expected to deploy CA’s Clarity Project and Portfolio Management (PPM) solutions in order to manage the new product and service lifecycle from the product design stage through production and delivery.

The company expects this technology innovation to define a structured approach, which will ultimately revolutionize the process, thereby increasing efficiency and reducing the time to market.

Tata Steel has been transforming its European arm into a more customer-focused organization by realigning its internal resources to industry sectors such as automotive, lifting and excavating, energy and power, packaging, construction and rail. CA’s offering will play a new role here, transforming and restructuring the whole process.

CA has been reshuffling its management team in order to promote the innovation of new products and solutions. This apart, the company has adopted certain strategies to drive growth, of which the focus on the SaaS/service provider market is notable.

The company has started to reap the benefits of acquisitions, restructuring and strategic investments made over the past three years. Further, while competitive wins are positive, margin expansion is on the cards for fiscal 2013 and beyond.

CA Inc. posted decent fourth quarter results exceeding the earnings estimates. Revenue also improved on a year-over-year basis as the company witnessed improvement in demand for its services. However, the product demand trend was moderate in the reported quarter. This apart, the company has implemented some fiscal discipline to improve its operating performance.

On the other hand, other players are also coming up with new products and solutions targeting the software and cloud computing space. The company is pitted against technology stalwarts like IBM Corp. (IBM) and Hewlett-Packard Company (HPQ). Moreover, we believe that tech spending will take some time to pick up and European exposure may continue to pose some challenges over the next few quarters.

The company has a short-term Zacks #3 Rank. (Hold rating).

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