TCS, Mitsubishi announce joint venture

Kolkata / Mumbai / Tokyo, Feb 8 (IBNS): Leading IT firm, Tata Consultancy Services (TCS) and Mitsubishi Corporation on Wednesday announced a new joint venture, Nippon TCS Solution Center Limited, for the Japanese market.

Nippon TCS Solution Center will offer a full service suite of IT, BPO and Infrastructure services to Japanese corporations.

TCS Japan will have 60 per cent stake with Mitsubishi Corporation having a 40 per cent stake.

The new joint venture will also establish a nearshore delivery center in Japan.

The joint venture comes against the backdrop of a strong yen, the globalization of supply chains and a growing trend toward overseas mergers and acquisitions, all of which act as a catalyst for the increasing globalization of Japanese companies.

This has brought heightened interest in the role of "global IT services" to link domestic and overseas operations.

N. Chandraseakaran, CEO and MD of Tata Consultancy Services said: "Japan is a very important market for TCS and we are delighted to partner with strong partner like Mitsubishi Corporation in this market.

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"The new joint venture will provide strong local market knowhow, deep domain knowledge as well as bring in global technology best practices to help Japanese corporations effectively respond to their global IT needs."

N. Chandrasekaran and Hideyuki Nabeshima, Senior Executive Vice President Mitsubishi Corporation have been appointed non-executive directors of the new company in a move that will see participation by senior management from both sides.

Mitsubishi Corporation and TCS have already started collaborating in a wide range of areas that include establishing an IT support system, that utilizes TCS's know-how and its Global Network Delivery Model (GNDM), for Mitsubishi Corporation's overseas bases as well as implementing new employee training programs for Mitsubishi Corporation's Business Services Division and for IT Frontier Co., Ltd., at its training center in India´s Trivandrum.