TCS' Chinese JV to start operations in September

Bangalore, July 28: Tata Consultancy Services (TCS) will commence operations of its Chinese joint venture in September, with three Chinese firms and Microsoft being partners of the company.

TCS CEO and Managing Director S Ramadorai told newspersons here today that Microsoft would have ten per cent share in the joint venture, with 25 per cent being chipped in by three Chinese companies -- Beijing Zhongguancun Software Park Development Co, Uniware Co and Tianjin Huayuan Software Area Construction and Development Co -- and the majority equity of 65 per cent contributed by TCS.

Under the shareholder promoters agreement, TCS had the option to buy back these shares at a later date. The total equity base of the company, including Microsoft's contribution, was likely to be 15 million US dollars, he said, adding that Microsoft would participate in the joint venture as a strategic investor as soon as it was established.

He said TCS had filed for business licence with the Chinese authorities. ''We have initiated various processes, including recruitment,'' he added.

Mr Ramadorai said the joint venture would be the first involving an Indian IT company to offer BPO and IT services in China. He said TCS' current operations in China, having 500 personnel, was likely to merge with the joint venture, which would blossom into a 5,000-strong company in four years. Mr Ramadorai said Tata Consultancy Services (China) would provide IT outsourcing services and solutions to the Chinese domestic market as well as the global market. The key objective of the global initiative was to build the new venture as a role-model for the growing Chinese software industry. China would emerge as the second major global delivery centre for TCS after India.

He said the joint venture would leverage the complementary strengths of the different partners in technology, software development management, talent acquisition and training, including the world-class processes and practices of TCS as well as its experience of handling large and industrial-scale technology projects. It would also leverage experience and resources of the Chinese partners, which run the national software development parks.

Mr Ramdorai said the joint venture would have centres across China to tap the talent pool.

TCS also won a mandate from the Chinese retail banker Huasia for implementation of core banking solution. In the first phase, 20 to 25 branches would be covered, he added.

UNI