February 8, 2012
Tata Consultancy Services
TCS and Mitsubishi Corporation to establish joint venture for IT services
Tata Consultancy Services (Mumbai, India; CEO: N. Chandrasekaran; hereinafter: “TCS”) a leading global IT services and consulting firm, and Mitsubishi Corporation (Chiyoda-ku, Tokyo; President: Ken Kobayashi), a global integrated business enterprise announced the establishment of an IT services joint venture, Nippon TCS Solution Center Limited, strategically targeted at providing world class information technology services to Japanese customers.
The new company will be capitalized at 350 million yen (approx. USD 4.5 million), of which TCS’ Japanese entity Tata Consultancy Services Japan (hereinafter “TCSJ”), will provide 60 percent and Mitsubishi Corporation 40 percent. The newly established company will be based in Tokyo. The joint venture sees the establishment of TCS’ first nearshore delivery center in Japan.
Joint establishment of the nearshore delivery center is aimed at capitalizing on the synergies born of Mitsubishi’s domestic brand strength and local market expertise paired with the global expertise of TCS’ global best practice and its Global Network Delivery Model (GNDM®), to meet the various needs of Japanese companies through enhanced service offerings.
The collaboration comes against the backdrop of a strong yen, the globalization of supply chains and a growing trend toward overseas mergers and acquisitions, all of which act as a catalyst for the increasing globalization of Japanese companies,. This has brought heightened interest in the role of “global IT services” to link domestic and overseas operations. Establishment of the joint venture will ensure customers experience certainty by providing the flexibility to effectively respond to global IT needs through TCS’ GNDM®, while catering to interface needs through the nearshore delivery center.
The new company will provide a full suite of IT services, including IT infrastructure management, system integration, application development, maintenance & operation services, engineering services and business process outsourcing (BPO) services. The new company’s sales functions will be provided by TCS Japan.
N. Chandrasekaran, CEO TCS 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 close coordination and participation by senior management from both sides in establishing strategic direction.
Mitsubishi Corporation and TCS have already started collaborating in a wide range of areas. The two companies have entered into discussions for the establishment of an IT support system, that utilizes TCS’s know-how and network, for Mitsubishi Corporation’s overseas bases, and are implementing new employee training programs for Mitsubishi Corporation’s Business Services Division and for IT Frontier Co., Ltd., a Mitsubishi Corporation group company, at TCS’s training center (Trivandrum, India). Through the ongoing pursuit of joint projects and exchange of human resources at every level, Mitsubishi Corporation and TCS aim to achieve further growth of their businesses and to strengthen service functions.
Name: Nippon TCS Solution Center Limited
Representative: Representative Director Masahiko Kaji
Registered office: Minato-ku, Tokyo
Capital: 350 million yen
Investment ratios: Tata Consultancy Services: 60% / Mitsubishi Corporation: 40%
Date of establishment: January 24, 2012
Scope of business:
・Design, develop, license and implement products relating to computer software and hardware, information systems, data processing and data communication systems
・Management of data processing, information systems and data communication systems
・ Provide advice and consultancy services relating to computer software and hardware, information systems, data processing and data communication systems
・Conduct scientific and technical research, developments, experiments and surveys relating to computer software and hardware, information systems, data processing and data communication systems
・Carry on the business of import, export, sale, purchase, lease, maintenance and services relating to computer software, hardware systems and equipments
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata Group, India’s largest industrial conglomerate, TCS has over 226,000 of the world's best trained consultants in 42 countries. The Company generated consolidated revenues of US $ 8.2 billion for year ended 31 March, 2011 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.
About Mitsubishi Corporation (MC)
Mitsubishi Corporation (MC) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people.
For more information, visit us at www.mitsubishicorp.com.
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