Tata Consultancy Services Ltd (TCS), India's leading IT software and business consulting company, and Japan's Mitsubishi Corporation will invest $5 million in a joint venture, Nippon TCS Solution Center Limited, for the Japanese market.
The Nippon TCS Solution Center will offer a full-service suite of IT, BPO and infrastructure services to Japanese corporations, the company said in a release today.
TCS Japan will have a 60-per cent stake while Mitsubishi Corporation will hold the remaining 40 per cent stake. The new joint venture will also establish a near-shore delivery center in Japan.
''The joint venture comes against the backdrop of a strong yen, the globalisation of supply chains and a growing trend toward overseas mergers and acquisitions, all of which act as catalysts for the increasing globalisation of Japanese companies,'' TCS said in its release.
TCS currently gets annual revenues of $100 million from the Japanese market. TCS expects to raise revenue from Japan to at least half a billion dollars in four-five years, TCS' chief executive N Chandrasekaran said.
TCS hopes to leverage Mitsubishi's significant domestic market expertise to meet the various needs of Japanese companies through enhanced solutions and service offerings.