TCS and Mitsubishi Corporation to establish joint venture for IT services
Tata Consultancy Services (Mumbai, India, “TCS”) a leading global IT services and consulting firm, and Mitsubishi Corporation (Chiyoda-ku, Tokyo), 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.
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Source: Mitsubishi Corporation