The Hindu : Business : TCS Chinese JV starts on a sound footing

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Saturday, Jul 29, 2006

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Business

TCS Chinese JV starts on a sound footing

Special Correspondent

Sets its eyes on a big slice of the $30-b Chinese IT market

BANGALORE: Tata Consultancy Services (TCS) has said that its recently formed joint venture (JV) company in China will start making profit in 12 to 18 months of commencing operations as the company sets its eyes on grabbing a big slice of the $30-billion Chinese IT market.

"The intent is to make TCS China profitable in 12 months. But, I am giving a window period of 12-18 months,'' S. Ramadorai, CEO and Managing Director, TCS, told reporters here on Friday.

Mr. Ramadorai said the new joint venture would bid for large Chinese domestic market engagements which its existing wholly-owed subsidiary in China with 500 employees was not allowed to do under Chinese laws.

"Our existing wholly-owned foreign enterprise in China was allowed to undertake only export of service by catering to MNCs operating there,'' he said. The JV has started on a sound note by winning the mandate to implement the core banking solution (CBS) for a retail Chinese Bank named Huaxia Bank that has presence in major cities across China. " TCS is also in advanced stages of discussions with other banks", Ramadorai said without divulging any names.

To scale up operations

Mr. Ramadorai said the joint venture had applied for a business licence, which would come by September before starting full-fledged operations from three provinces. The joint venture would start functioning initially with 500 employees by integrating the operations of its existing subsidiary into the new company. TCS planned to scale up operations to 5,000 people in about four years.

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