Microsoft Joins TCS China as Strategic Investor
TCS China Will Focus on BFSI, Manufacturing, Telecom As well As the Government Sector
Nov. 28, 2006 02:00 AM
Tata Consultancy Services (TCS) and its Chinese partners, supported by the National Development and Reforms Commission (NDRC) announced that Microsoft had signed a tripartite investment agreement to be a strategic investor in TCS China, with the TCS and the and Chinese Parties, which are national software export bases located in Beijing and Tianjin and nominees of the NDRC. Microsoft will hold a minority stake in TCS China.
The agreement was signed at an Indo-Chinese business forum which had been addressed by President Hu Jintao earlier.The entry of Microsoft follows the granting of the business operating license to TCS China. It also signals the culmination of the process to get the joint venture operational after an MoU was signed between the three parties (TCS, Chinese parties and Microsoft) in June 2005.
Following Microsoft's entry with a 10 per cent stake, the shareholding of the JV will alter with TCS APAC owning the majority stake with 65 per cent and the three Chinese partners, supported by NDRC holding the remaining 25 per cent. "The cooperation with Microsoft and national software export base located in the new up and coming economic zone in Beijing and Tianjin, will help TCS China achieve great leaps in the future," said Ms. Zhou Fang CEO of Zhongguancun Software Park or Z-Park one of the national software export bases in China) and the representative of Chinese parties.
TCS China will allows TCS to provide our clients with the best in technologies at affordable local prices, with services delivered at TCS' known global quality processes," said Girija Pande, head of TCS in Asia Pacific.
TCS pioneered the entry of Indian IT industry in China in 2002 and remains at the forefront of that thrust with nearly 600 associates in China.
TCS China will focus on BFSI, Manufacturing, Telecom as well as the Government sector. TCS has over 25 customers in China with a very high customer satisfaction index. It is implementing a Core Banking Solution in Huxia Bank thru its FNS Sydney subsidiary which expects to win more deals in the growing Chinese banking market. The JV will focus on key technologies with Centres of Excellence in Microsoft.