Microsoft takes stake in TCS China

Stan Beer
Sunday, 26 November 2006 06:03

IT Industry - Strategy

Microsoft has taken a minority stake in the China office of Indian IT outsourcer and services provider Tata Consultancy Services (TCS). The agreement will see Microsoft take a stake in a three-way joint venture which will also include Chinese partners.

The agreement was signed at an Indo-Chinese business forum which was 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 groups (TCS, Chinese parties and Microsoft) in June 2005.

Following Microsoft’s entry with a 10% stake, the shareholding of the JV will alter with TCS APAC owning the majority stake with 65% and the three Chinese partners, supported by National Development and Reforms Commission (NDRC) holding the remaining 25%.

“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 allow 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 China will focus on BFSI, manufacturing, telecoms as well as the government sector. TCS is implementing a core banking solution in Huxia Bank thru its FNS Sydney subsidiary. The JV will focus on key technologies with centres of excellence in Microsoft.