TCS to have majority stake in Chinese JV
New Delhi, Apr 19: Tata Consultancy Services (TCS) will join hands with Microsoft to set up a joint venture with the Chinese government, in which TCS will have a majority stake, with an option to buy out either or both of the other two players in the future.
''We are still in the negotiating stage and cannot divulge anything further. But we will have a majority stake in the venture with an option to go upto 100 per cent,'' TCS Executive Vice President Phiroz Vandrevala told reporters here.
The company has already appointed the Chief Executive Officer to head the Chinese operation. ''We will begin by October, with a work force of 400 people. We will take that number up to around 5000 in the next four years,'' Mr Vandrevala added.
TCS Chief Financial Officer S Mahalingam said, ''China is an interesting place to be. The government of China has also generated an interest in our company and we are looking at the country in terms of expansion and investment in a big way.'' The company is keen to get a bite out of the 2008 Beijing Olympics, and is also looking at expansion in Eastern Europe, Asia and North America.
TCS presently has 4,500 people recruited in its offices outside India. As on 31 March 2006, the company had 3,700 peope and took in an additional 900 people from Pearl on April 1.
Asked about whether they were looking at any split in revenues, Mr Mahalingam said, ''We need to look at five additional splits in the field of BPO, Infrastructure, Consulting, Product Area and Engineering. We will do that next year probably.'' He added, ''We are hoping for a corporate tag line by the end of this year.'' The company presently has 62,000 employees and plans to add another 30,500 people in 2006-07.
''We have recruited a large number of people from all over India. Today we go to 300 institutions, a number which was only 150 three years ago,'' Mr Mahalingam said.
The company had 748 customers at the end of the fourth quarter and added 89 new clients during the period 330 during fiscal 2006.
Recently, the company announced a 41 per cent increase in its net profits profits at 649.17 million dollars for the financial year ended 31 March, 2006, while total revenues were up 36 per cent to 2.97 billion.