Mumbai, Tokyo: India's biggest IT consultancy Tata Consultancy Services, TCS, has created a big new IT services force in Japan by combining its operations with Mitsubishi Corporation's IT Frontier Corporation.
TCS Japan, IT Frontier Corporation (ITF), the 100% owned IT subsidiary of Mitsubishi, one of Japan's largest integrated coorporations, and Nippon TCS Solution Center Limited (NTSC), are to merge as a single new entity.
- The merger will create a strong IT services unit with a base of over 2400 associates in Japan
- The entity will have revenues over $600 million per annum
- TCS will have 51% equity, MC will have 49% equity.
- Transaction enables TCS to serve a number of leading Japanese corporations as its strategic customer
- The transaction is expected to close by June 2014
- The new operation will be live in July
N Chandrasekaran, CEO and Managing Director, TCS, said, "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.
"We deeply value the partnership with Mitsubishi Corporation and look forward to leveraging our mutual strengths in the Japan market."
TCS says the transaction will create a new IT Services company of significant scale in the Japanese market. ITF brings its long standing relationships with Japanese corporations, talented workforce and competencies in industries like retail, distribution and trading. This will complement TCS' deep domain knowledge, technology expertise and strong execution track record. TCS added that its Global Network Delivery Model capabilities will also act as an enabler to the globalization ambitions of Japanese corporations. "The company will provide tremendous additional value to clients in Japan; while employees will secure the advantages of building their careers in a global organization", it commented.