Beijing: India's top IT company, Tata Consultancy Services (TCS) on Tuesday launched a joint venture in China and announced securing a major contract with the prestigious China Foreign Exchange Trade System under the Chinese central bank.
The joint venture, christened Tata Consultancy Services (China) Co. Ltd. is located in Beijing's Zhongguancun Software Park and will provide IT services and solutions to China's domestic market as well as major markets particularly Japan as well as the rest of Asia-Pacific region, US, and Europe.
It will also leverage experience and resources of the Chinese partners, which run the national software development parks.
“It is an extremely satisfying moment, the beginning of our presence in China,” TCS Managing Director and CEO TCS Ltd, S Ramadorai said.
China had won a major project with the state-owned Bank of China last year.
"As you can see we are starting a major project for the Chinese domestic market with Bank of China, both the domestic and global markets that we are trying to build," he said.
"The JV will add momentum to the software industry," Ramadorai said adding, "I believe that we have a lot to contribute and to build capabilities".
While the details of the contract with CFETS are not known, industry sources said that could be one of the major IT-related deals signed by a major India-based global information technology company in China, where the market is considered tough.
CFETS was founded in 1994 as an outcome of forex system reform undertaken by the Communist giant.
CFETS, also known as the National Interbank Funding Centre, is the only foreign exchange and interbank money market in China, created and governed by the People's Bank of China, the central bank.
Instruments traded at CFETS include cash foreign currencies (US Dollar, Japanese Yen, the Euro currency, and HK Dollar against Chinese Renminbi), lending denominated in
Renminbi as well as selected foreign currencies, governments, securities, and Repo transactions.
CFETS also handles foreign exchange clearing for all the trading members in its foreign exchange market.
The launching of the TCS-headed joint venture, backed by the National Development and Reforms Commission (NDRC), China's top planning body, has also roped in Microsoft Corporation, company sources said.
TCS and its Chinese partners had announced in November last year that Microsoft had signed a tripartite investment agreement to be a strategic investor in TCS China. Microsoft will hold a minority stake in TCS China.
TCS entered China in 2002 and has grown very fast. In China, the company's main focus is on banking, financial services and insurance (BFSI), manufacturing, telecom as well as the huge government sector.
Comments
0 comment