TCS, Mitsubishi sign deal to provide IT services in Japan

India's biggest IT outsourcer Tata Consultancy Services (TCS) has formed a joint venture with Japanese giant Mitsubishi Corp. according to Nikkei.

The joint venture will provide information technology services to help Japanese companies to expand their overseas operations. It will be capitalized at 350 million yen.

The joint venture will develop & operate enterprise resource planning (ERP) systems and offer cloud computing services.

N Chandrasekaran, TCS CEO and MD, said that Mitsubishi will have a 40 per cent stake, with the remaining 60 per cent held by TCS' Japanese arm.

"The JV will be set up with an initial investment of $5 million, which will be raised in a phased manner," Chandrasekaran said at a conference call.

The joint venture company will offer a full service suite of IT, BPO and iInfrastructure services to Japanese corporations. The new joint venture will also establish a nearshore delivery center in Japan, TCS said in a statement.

"Japan is a very important market for TCS and we are delighted to partner with strong partner like Mitsubishi Corporation in this market. The new joint venture will provide strong local market knowhow, deep domain knowledge as well as bring in global technology best practices to help Japanese corporations effectively respond to their global IT needs," Chandrasekaran said.

Chandrasekaran 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 participation by senior management from both sides. 

(With inputs from PTI)