TCS, Mitsubishi Corp; JV to set up delivery centre in Japan

TCS, Mitsubishi Corp; JV to set up delivery centre in Japan
In a bid to provide world class information technology services to Japanese customers, Tata Consultancy Services and Mitsubishi Corporation will invest 350 million yen or about USD 4.5 million in a joint venture to set up a delivery centre in Japan.

The new joint venture thus formed is named as Nippon TCS Solution Center Limited and will work to meet the various needs of Japanese companies through enhanced service offerings.

Following the establishment, the new company will provide a full suite of IT services, including IT infrastructure management, system integration, application development, maintenance & operation services, engineering services and business process outsourcing (BPO) services.

As per the agreement, of the total investment of USD 4.5 million, TCS' Japanese entity Tata Consultancy Services Japan (hereinafter “TCSJ"), will provide 60 percent while Mitsubishi Corporation will provide 40 percent. The newly established company will be based in Tokyo, said the statement released by the company.

Meanwhile, the collaboration comes against the backdrop of the positive factors such as a strong yen, the globalization of supply chains and a growing trend toward overseas mergers and acquisitions. All these factors have chalked out as the catalyst for the increasing globalization of Japanese companies.

Additionally, the establishment of the joint venture will ensure customers experience certainty by providing the flexibility to effectively respond to global IT needs through TCS' GNDM®, while catering to interface needs through the nearshore delivery center.

“Joint establishment of the nearshore delivery center is aimed at capitalizing on the synergies born of Mitsubishi's domestic brand strength and local market expertise paired with the global expertise of TCS' global best practice and it's Global Network Delivery Model (GNDM), to meet the various needs of Japanese companies through enhanced service offerings," added the statement.

N. Chandrasekaran, CEO TCS and Hideyuki Nabeshima, Senior Executive Vice President Mitsubishi Corporation have been appointed non-executive directors of the new company in a move that will see close coordination and participation by senior management from both sides in establishing strategic direction. Additionally, the new company's sales functions will be provided by TCS Japan.

Dion Global Solutions Ltd

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