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India : PATH breaking IT venture with Mitsubishi formed by TCS [TendersInfo (India)](TendersInfo (India) Via Acquire Media NewsEdge) Tata Consultancy Services (TCS) and Mitsubishi Corp declared a joint venture that could be a innovator for Indian companies in dealing with a huge Japanese market that has been by and large not used by the nation s IT industry. The venture comprises TCS Japan and Mitsubishi s own software arm merging to form a new company that is anticipated to see $600 million in yearly revenues in the first year. TCS Japan, IT Frontier Corporation a Mitsubishi subsidiary and Nippon TCS Solution Center will at present be merged to form a new company that would aim completely on Japan s $108 billion (Rs 6,54,200 crore) IT services market. TCS has not yet named this new firm expected to begin in July. TCS Japan will at first possess a 51% stake in the new company whereas Mitsubishi Corp will hold 49%. TCS Japan has the option to later raise its stake to 66%. The plan by TCS may be a pioneer for similar such deals in the near future as Indian IT firms look to develop their existence beyond the traditional markets of US and Europe. For Japan s ageing economy, India could be an ally in both innovation and cost decrease. The venture is a indicator of India and Japan coming closer as the Far Eastern nation rides on Abenomics Prime Minister Shinzo Abe s economic stimulus programme to pull Japan out of a prolonged economic slide. TCS chief executive N Chandrasekaran said, This strategic transaction signifies our serious commitment to the Japan market. TCS will now have scale, strong local presence to serve the Japanese corporations effectively and accelerate our growth in Japan s market . Akhilesh Tuteja, India head for technology practice at consulting firm KPMG said, Japan is a very good market to work in local partnerships. For Indian IT firms this will help them break language barriers and get culturally aligned with Japanese firms . TCS, Wipro, Infosys, Zensar, Mastek and NIIT Technologies have been in Japan for more than two decades however earn less than 3% of revenues from Japan. Japan s manufacturing companies are as well looking to develop in India through committed corridors, and IT ventures may be intentionally positioned to use related prospects. (c) 2014 Euclid Infotech Pvt. Ltd. Provided by Syndigate.info, an Albawaba.com company |