Microsoft takes 10 percent stake in TCS China
By SiliconIndia | Friday, 24 November 2006, 06:00 Hrs
Mumbai: `India - China Trade and Investment Co-operation Summit' led to the signing of a tripartite investment agreement between Tata Consultancy Services (TCS) and its three Chinese partners and Microsoft for the stake holding pattern of TCS China, the Chinese arm of TCS. Beijing Zhongguancun Software Park, Uniware Company Ltd and Tianjin Huayuan Software Construction are the Chinese parties to the agreement.
Microsoftâs entry into China follows the granting of business operating licences to TCS China. The three parties had signed a MoU to this effect in June 2005.
According to the joint venture agreement signed yesterday, Microsoft will hold 10 per cent stake in TCS China whereas TCS will hold 65 per cent and the Chinese partners will hold the remaining 25 per cent.
âThe equity capital of the company would be around $14 million. TCS China will allow TCS to provide the best in technologies to clients there at affordable local prices," said Girija Pande, Head of TCS in Asia Pacific.
The Chinese wing of TCS will employ 5,000 people in five years' time. The entity will focus on the BFSI (Banking, Financial Services and Insurance), manufacturing, telecom and government sectors, said Pande.
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