Date:01/07/2005 URL: http://www.thehindubusinessline.com/2005/07/01/stories/2005070101710500.htm

Back TCS in BPO venture with Microsoft, Chinese cos

Our Bureau

New Delhi , June 30

TATA Consultancy Services (TCS) and Microsoft have been selected as strategic partners by the Sino-India Cooperative Office (SICO) of China to form a joint-venture company for IT outsourcing services and solutions for the global and the Chinese markets.

"TCS, Microsoft, and Beijing Zhongguancun Software Park Development Co, Uniware Co and Tianjin Huayuan Software Park Construction and Development Co have announced that they intend to establish a software joint venture company to provide IT outsourcing services and solutions to both the global and domestic markets," a TCS release said here.

TCS will be the majority shareholder, while Chinese firms and Microsoft will be strategic investors holding minority shares. The joint venture,to be located in Beijing's Zhongguancun Software Park, will start operations in early 2006. It will provide IT outsourcing services and solutions to global markets, particularly in the US, Europe, and the Asia Pacific region, including China's domestic market. The aim is to build the new venture as a role model for the growing Chinese software industry.

The Letter of Intent to this effect was signed by Mr Li Baoxin, Chairman of Zhongguancun Software Park Development Co, Mr Tim Chen, Microsoft Corporate Vice-President, CEO, Greater China Region and Mr Jayant Pendharkar, Vice-President of TCS.

Mr Zhang Xiaoqiang, Vice-Chairman of the National Development and Reform Commission of China, attended the ceremony along with Mr Steve Ballmer, Chief Executive Officer, Microsoft Corporation and Mr V. Rajanna, General Manager of TCS China.

"The joint venture will leverage the complementary strengths of the investing parties in technology, software development management and talent training, in particular, best processes and practices of TCS as well as its experience of handling large and industrial-scale projects. It will put into play the resources of Chinese partners, which run the national software development parks," the statement added.

TCS' CEO and MD, Mr S. Ramadorai, said, "This venture is an ample demonstration of the credibility that TCS has established in a market like China within a short span of time. TCS is committed to this initiative and this venture will be integrated into our global delivery model."