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Mumbai: Tata Consultancy Services Ltd (TCS), India's top IT services provider, has received regulatory approval from Chinese authorities for its joint venture with Microsoft Corporation in that country. TCS, which will hold a controlling stake in the venture, expects the unit to begin operations by the end of this month. Three Chinese companies backed by the local governments of Beijing and Tianjin will hold about 28 per cent of the venture and Microsoft 10 per cent while TCS will have the remaining stake.
The joint venture is backed by China's top economic planner, the National Development and Reform Commission, and is expected to become profitable within 18 months. The news comes close on the heels of TCS reporting a better-than-expected 44 per cent rise in second-quarter (July-September 2006) profit as business surged at its centers in India, Brazil and China. TCS is also moving ahead with a strategy to shift work to least-cost | 
