Mumbai: India's biggest software services exporter, Tata Consultancy Services (TCS) and Japanese major Mitsubishi Corporation on Wednesday announced a new joint venture, Nippon TCS Solution Center Ltd for the Japanese market.
"The JV will be set up with an initial investment of USD 5 million, which will be raised in a phased manner. In this joint venture, TCS Japan has taken 60 percent stake, while the remaining 40 percent will be held by Mitsubishi Corporation," TCS CEO and managing director N Chandraseakaran said at a conference call here.
The joint venture company will offer a full service suite of IT, BPO and infrastructure services to Japanese corporations. The new joint venture will also establish a nearshore delivery center in Japan, TCS said in a statement.
The joint venture comes against the backdrop of a strong yen, the globalisation of supply chains and a growing trend toward overseas mergers and acquisitions, all of which act as a catalyst for the increasing globalisation of Japanese companies. This has brought heightened interest in the role of "global IT services" to link domestic and overseas operations, the company said.
The nearshore delivery center will leverage Mitsubishi's significant domestic market expertise as well as the global expertise of processes and best practices of the TCS Global Network Delivery Model (GNDM), to meet the various needs of Japanese companies through enhanced solutions and service offerings, the release said.
"Japan is a very important market for TCS and we are delighted to partner with strong partner like Mitsubishi Corporation in this market. 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," Chandraseakaran said.
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 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 Thiruvananthapuram, it said.