TCS could emerge as major force in China

By agencies   |   Monday, 11 July 2005, 19:30 IST
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NEW DELHI: The analysts reviewed that the decision of IndiaÂ’s top software exporter, Tata Consultancy Services to float an IT services company in China with Microsoft and three Chinese entities might emerge as a major force in China. "This venture sounds a warning bell for competitors, including global providers from the United States and Europe," research firm Gartner's India head Partha Iyengar said, adding it also signals an opportunity for companies around the world to leverage global sourcing from China. The Chinese government is backing the new company so that it can emerge as a role model for the fledgling Chinese IT service industry. "The success of this venture and the benefits it could bring for other providers could help propel China into a global sourcing leadership position," he said. TCS also gains an advantage over other Indian companies that are trying to break in to China, thanks to Chinese government sponsorship, Chinese company expertise and Microsoft support for local language software availability for this venture," Iyengar said. With the Chinese government backing, Microsoft and TCS venture could become a dominant force in the Chinese IT services market, AMR Research's Lance Travis said. Iyengar said non-Chinese service providers, especially those looking to provide services in China, should seek similar partnerships with regional governments and service providers. Global sourcing clients looking for China-based services options should have this venture - once operational - at the top of their short lists, he added. With its Chinese government backing, the Microsoft and TCS venture could become a dominant force in the Chinese IT services market, AMR Research's Lance Travis said. Travis said the venture continues TCS's expansion into non-English speaking geographies.