South Africa is a key strategic market for the For the Indian IT giant, part of the $29-billion Tata Group with the presence of multiple firms including Tata Motors, Tata Steel and VSNL. The new subsidiary will help intensify this focus further and is in line with TCS global strategy to have a direct presence in the countries in which it operates.

The new subsidiary will help the TCS bring its global best practices to help increase the competitiveness of South African business and the skill levels of IT professionals in South Africa. TCS South Africa will have equity participation from the Black Economic Empowerment (BEE) groups in South Africa to ensure a high level of social governance and localisation of services and skills.

"We see South Africa as a key strategic market for TCS and also as a gateway to southern and central Africa. Through our own subsidiary, we will be well-placed to contribute to the economic growth of the country and its businesses by bringing in global best-practices and world-class technology solutions, said S Ramadorai, chief executive officer and MD, TCS.

"The new model will help TCS make a greater contribution to the South African economy and help invest in skills and capabilities of its IT professionals by leveraging our world-class learning and development programs."

TCS South Africa already works with leading companies in South Africa in sectors like banking and financial services, government, manufacturing, energy, telecom and retail.