Tata Consultancy Services Ltd [Get Quote] and Microsoft were selected as strategic partners by Sino-India Cooperative Office of China to set up a software joint venture company for IT outsourcing services and solutions to both global and domestic market.
As part of this strategic partnership, TCS, Microsoft, and Beijing Zhongguancun Software Park Development Company, Uniware Company and Tianjin Huayuan Software Park Construction and Development Company would be parties to set up this company, TCS informed the Bombay Stock Exchange in Mumbai on Thursday.
The JV, to be located in Beijing's Zhongguancun Software Park, plans to start operation in early 2006, it said.
The JV would provide IT outsourcing services and solutions to all worldwide markets particularly US, Europe, and the Asia Pacific region including China's domestic market.
The objective of this global initiative is to build the new venture as a role-model for the growing Chinese software industry, it said.
The JV would leverage the strengths of investing parties in technology, software development management and talent training, in particular processes and practices of the company as well as its experience of handling large and industrial-scale projects, it said.
TCS would be the majority shareholder while Chinese parties and Microsoft would be strategic investors holding minority shares, it said.
The joint venture would put into play the resources of Chinese partners, which run the national software development parks, it said.
The cooperative project has been initiated and supported by the National Development and Reforms Commission with the objective of backing China's local software industry through international cooperation.
Commenting on this strategic achievement, TCS managing director and CEO S Ramadorai said, "This venture is a demonstration of the credibility that TCS has established in China within a short span of time. TCS is committed to this initiative and this venture will be integrated into our pioneering global delivery model."
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