Tata Consultancy Services, Mitsubishi to form services company

Written by FE Online | Mumbai | Updated: Apr 21 2014, 19:13pm hrs
Tata Consultancy ServicesTCS Japan Ltd, Nippon TCS Solution Center and IT Frontier Corporation, a wholly owned unit of Mitsubishi, will be merged together to form a single entity.
Tata Consultancy Services (TCS), India's top IT services, consulting and business solutions firm announced today that it signed a definitive agreements with Mitsubishi Corporation (MC), one of Japans largest integrated business enterprises, to create a Japanese software services provider.

Tata Consultancy Services Japan Ltd, Nippon TCS Solution Center Ltd and IT Frontier Corporation - a wholly owned unit of Mitsubishi - will be merged together to form a single entity, the company said in a statement. TCS will hold 51 per cent in the merged entity while Mitsubishi will hold 49 per cent. The merged entities to be operational from July 2014.

Also read: Now, TCS profit all set to beat that of Reliance Industries

Commenting on the transaction 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, he added.

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 Global Network Delivery Model capabilities will also enable the Japanese corporations globalisation ambitions. 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.