TCS buys Swissair Financial Services stake in BPO JV
By Mumbai: | 07 May 2003
Mumbai: Tata Consultancy Services (TCS) has announced the acquisition of Airline Financial Support Services India Pvt Ltd (AFS), a business process outsourcing (BPO) outfit which is a joint venture between Swissair and TCS, in which the latter already owns a 24.9-per cent stake.
Swissair, which is in liquidation, is currently selling off its assets worldwide, which is the reason for its exiting AFS as well. "However, AFS is a profitable company," say TCS officials.
The company has bought out Swissair's 75.1-per cent stake in AFS for an undisclosed amount. The actual acquisition has been made by a Tata Sons holding company of TCS, under whose name all TCS acquisitions are done, says TCS managing director S Ramadorai.
AFS will become the centre of excellence in the TCS BPO's offerings for the airline and hospitality industry. Ramadorai describes the acquisition as a significant step for TCS in the BPO segment where it has traditionally been offering services to domestic clients.
"TCS will now be able to take advantage of its global presence and market services to international airlines and the hospitality industry," he says. "AFS has a staff strength of 400, which will be ramped up to 2,000 within three years."
