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News >> Technology >>
TCS forms IT outsourcing JV in China
By agencies
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Thursday, 30 June 2005, 19:30 IST
MUMBAI: In one of the largest ever initiative by Indian IT company in China, Tata Consultancy Services (TCS) and Microsoft have been selected as partners to form a joint venture (JV) company for IT outsourcing services and solutions for global and domestic market.
As part of this strategic partnership, TCS will hold a majority stake in the joint venture for Sino-India Cooperative Office (SICO) of China, TCS said in a release in Mumbai on Thursday.
The other stakeholders in the proposed venture are Microsoft, Beijing Zhongguancun Software Park Development Company Ltd, Uniware Company Ltd and Tianjin Huayuan Software Park Construction and Development Company Ltd, it said.
The JV, to be located in Beijing's Zhongguancun Software Park, plans to start operation in early 2006, TCS said.
The JV would provide IT outsourcing services and solutions to all worldwide markets particularly U.S., Europe, and the Asia Pacific region. It is well positioned to in bid Chinese domestic market including government projects and IT assignments for Beijing Olympics scheduled in 2008.
The JV would leverage the strengths of investing parties in technology, software development management and talent training, in particular processes and practices of the company as well as its experience of handling large and industrial-scale projects, it said.
TCS said the Tata group entity would hold majority stake while Chinese parties and Microsoft would be strategic investors holding minority shares.
The joint venture would pool the resources of Chinese partners, which run the national software development park, it said.
The cooperative project has been initiated and supported by the National Development and Reforms Commission (NDRC) with the objective of backing China's local software industry through international cooperation.
Commenting this strategic achievement, TCS Managing Director and CEO S Ramadorai said "this venture is sample demonstration of the credibility that TCS has established in China within a short span of time. TCS is committed to this initiative and this venture will be integrated into our pioneering global delivery model."