TCS to set up firm in China; MS to join later

New Delhi, Jul 24: Tata Consultancy Services Asia Pacific Pte, a TCS subsidiary, today said it has signed a shareholder promoters agreement to set up China's first industrial scale software company as a joint venture with the Chinese local partners who will later be joined by world's number one software firm, Microsoft.

The local partners include Beijing Zhongguancun Software Park Development Co, Uniware Co, and the Tianjin Huayuan Software Area construction and Development Co to establish China's first industrial scale software company.

The joint venture, Tata Consultancy Services (China) Co, will provide IT outsourcing services and solutions to the Chinese domestic market as well as the global market.

''Microsoft will participate in the joint venture as a strategic investor, as soon as the joint venture is established,'' TCS said.

The company will have the majority equity stake and management control of the joint venture company. Tata Consultancy Services (China) Co, will be located in Beijing's Zhongguancun Software Park (z-Park) and is expected to start operation in September this year.

It will provide IT services and solutions to China's domestic market as well as major markets, particularly Japan as well as the rest of Asia-Pacific region, US, and Europe.

''The key objective of this global initiative is to build the new venture as a role-model for the growing Chinese software industry,'' it said.

The shareholder promoters agreement and other relevant commercial documents were signed by representatives of the partners in Beijing today.

The joint venture will leverage the complimentary strengths of the different partners in technology, software development management, talent acquisition and training, including the world-class processes and practices of the company. It will also leverage experience and resources of the Chinese partners, which run the national software development parks.

''This venture is a significant business opportunity, which has global appeal in terms of its customer offerings and is capable of creating a Chinese domestic business of increasing scale,'' said CEO and MD of TCS S Ramadorai.

TCS will help develop best-in-class core competencies in software engineering, processes, scalable software development by using unique learning and development model that will create new opportunities for IT professionals and the industry in China, he said.

UNI