The Hindu Business Line : TCS to hold 64% stake in Chinese JV

Tata Consultancy Services (TCS) has said that it would hold 64 per cent stake in its Chinese joint venture and that its existing, wholly-owned global delivery centre would be folded into the new venture when the latter is formally launched sometime this June.

Addressing the press in the city, Mr S Ramadorai, CEO and MD, TCS, said, "Our subsidiary will become a part of the new venture. We will hold 64 per cent stake in the JV with the National Development Reforms Commission (NDRC) in China. Microsoft will be the other investor in the company."

The joint venture would look at opportunities in the Chinese market.

Integrating recent buys

TCS has also completed the integration of companies it recently acquired: Comicron in Chile, FNS in Australia and its Indian sister concern Tata Infotech. He said, "The overall integration has been positive. CMC was our first large integration. FNS, with 190 professionals and Comicron with 1,100 have been integrated. We followed a good process, more so in domain integration. For Tata Infotech, a core team, focused on integration, mapped individual competencies so that they could deployed accordingly."

For FNS, TCS has nominated a chief financial officer and chief operating officer to the company. TCS has also done a formal review of Comicron through a board representation. Comicron recently bagged a BPO deal with a Spanish bank for an extension of the work it did in Chile. In the case of the Pearl deal, he said, "We will let operations run as is for another 18 months. We have nominated a CFO and a COO and will later look at leveraging that platform, offshorability and the like."

Managing brands

Later speaking to Business Line, Mr Ramadorai said the company was awaiting a report from global brand building consultants towards managing its brands.

He said, "We expect Siegel+Gale to come back to us by May-June 2006 with their recommendations on how to manage existing sub-brands such as Quartz, FNS and the like."

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