TCS, Mitsubishi sign agreement; to merge IT units

India’s largest software services firm Tata Consultancy Services (TCS) has signed an agreement with Japanese major Mitsubishi Corporation to form a single IT services unit, the company said today.

The merger, in which TCS will hold 51 per cent stake and Mitsubishi 49 per cent, will create a new IT services company of significant scale in the Japanese market with annual turnover of over USD 600 million.

"TCS Japan, IT Frontier Corporation (ITF) –- Mitsubishi’s 100 per cent IT subsidiary -- and Nippon TCS Solution Center (NTSC), to merge as a single new entity," TCS said in a statement.

TCS will hold 51 per cent in the merged entity, while Mitsubishi will have 49 per cent and the merged entities would be operational from July 2014, it added.

ITF brings its long-standing relationships with Japanese corporations, talented workforce and competencies in industries like retail, distribution and trading, TCS said.

This will complement TCS’ deep domain knowledge, technology expertise and strong execution track record, it added.

"This strategic transaction signifies our serious commitment to the Japan market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market," TCS CEO and Managing Director N Chandrasekaran said.

TCS’ Global Network Delivery Model (GNDMTM) capabilities will also enable the Japanese corporations’ globalisation ambitions, TCS said.

The company will provide tremendous additional value to clients in Japan, while employees will secure the advantages of building their careers in a global organisation, it added.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Faith is the opium of the masses, so Indians get addicted

    India is a nation of 1.27 billion. Let that number sink in, with all its zeroes. That’s a lot of people.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Public good research in agriculture

Public good research in agriculture is designed to promote risk ...

Zehra Naqvi

To hell and back

Here is a book that makes you wish there were ...

Bubbles Sabharwal

When your real & reel life heroes are the same

ALL the world’s a stage and we all are merely ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture