Tata Consultancy Services sets up special unit to expand presence in emerging markets news
17 January 2008

Tata Consultancy Services (TCS) today said that it will consolidate its operations under a new strategic business unit, Emerging Markets, comprising its Eastern Europe, Middle East, Africa and Latin America businesses, to be headed by Gabriel Rozman, as its executive vice president.

Rozman, who has led TCS' operations in Latin America, Spain and Portugal for the last five years, will be responsible for expanding the company's presence and growth in emerging markets in order to further diversify its revenue base as well as expand its proprietary global network delivery model.

"In order to further increase our market leadership in emerging markets and build a strong franchise in these geographies, we are setting up a new strategic business unit to help leverage new opportunities in Eastern Europe, The Middle East, Africa and Latin America," said N Chandrasekaran, chief operating officer and executive director, Tata Consultancy Services. "With emerging market economies growing sharply, we believe this is the right time to further extend our presence and partner with customers in these geographies."

Analysts estimate emerging markets to currently account for 25.5 per cent of the $730-billion Global IT services market, growing at a faster annual growth rate of 8 per cent versus the developed markets rate of 6 per cent.

Goldman Sachs estimates that the economies of BRIC countries (Brazil, Russia, India, China) as well as Mexico are rapidly expanding and will account for approximately 50 per cent of the world GDP by 2050. "Our plan for emerging economies include three immediate strategic priorities - upgrading our presence significantly in the BRIC economies, entering new markets and expanding our network of global delivery centers," said Rozman.

TCS already has acquired a presence in Latin America spread over 12 countries in the region has developed into a large operation in just five years, catering to over 150 clients, apart from a significant presence in China, South Africa, United Arab Emirates and Eastern Europe.

The emerging markets generated 4.7 per cent of TCS' revenues (at the end of Q3 2007-08). It also has set up global delivery centres in six countries across the region. The Company generated consolidated revenues of US $4.3 billion for fiscal year ended 31 March 2007.


 search domain-b
  go
 
Tata Consultancy Services sets up special unit to expand presence in emerging markets