BEIJING – June 30, 2005 – Tata Consultancy Services (TCS), a leading global IT services company, and Microsoft were selected as strategic partners by Sino-India Cooperative Office (SICO) of People’s Republic of China (PRC). As part of this strategic partnership, Tata Consultancy Services Ltd. (TCS) of India, Microsoft, and Beijing Zhongguancun Software Park Development Co., Ltd., Uniware Co., Ltd. and Tianjin Huayuan Software Area Construction and Development Co., Ltd. announced that the parties intend to establish a software joint venture company to provide IT outsourcing services and solutions to both the global market and domestic market.
The joint venture, to be located in Beijing’s Zhongguancun Software Park, plans to start operation in early 2006. The joint venture will provide IT outsourcing services and solutions to all major worldwide markets particularly US, Europe, and the Asia Pacific region including China’s domestic market. The key objective of this global initiative is to build the new venture as a role-model for the growing Chinese software industry.
The Memorandum of Understanding was signed by representatives of the parties in Beijing – Mr. Li Baoxin, Chairman of Zhongguancun Software Park Development Co., Ltd.; Mr. Tim Chen, Microsoft Corporate Vice President, CEO, Greater China Region; and Mr. Jayant Pendharkar, Vice President of TCS. Mr. Zhang Xiaoqiang, Vice Chairman of the National Development and Reform Commission (NDRC) of the People’s Republic of China; Fan Boyuan, Vice Mayor of Beijing, and Yang Dongliang, Vice Mayor of Tianjin, attended the ceremony together with Steve Ballmer, chief executive officer, Microsoft Corporation and V Rajanna, General Manager of TCS China.
The joint venture will leverage the complementary strengths of the investing parties in technology, software development management and talent training, in particular the best processes and practices of TCS as well as its experience of handling large and industrial-scale projects. It will put into play the resources of Chinese partners, which run the national software development parks.
The cooperative project has been initiated and supported by the NDRC, with the objective of supporting China’s local software industry through international cooperation. Microsoft’s investment also demonstrates its commitment to the MOU signed in June 2002 with the NDRC for supporting the development of China’s software and IT industry.
“The success of the cooperation will help accelerate the development of China’s including Beijing’s software industry and this model is a new way of exploring international cooperation in the software industry,” said Zhang Gong, Vice Director General of Beijing Municipal Development and Reform Commission.
Commenting on this strategic achievement, CEO and MD of TCS, Mr. S Ramadorai said, “This venture is ample demonstration of the credibility that TCS has established in a market like 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.”
“We see our government and industry partners as vital to our success in the world’s fastest growing economy,” said Mr. Tim Chen, Microsoft Corporate Vice President and CEO of Greater China Region. “We are fully committed to this partnership and look forward to partnering and growing together with the Chinese software industry.”
TCS would be the majority share holder and the Chinese parties and Microsoft will be strategic investors holding minority shares.
Zhongguancun Software Park, with the support and guidance of NDRC and the Beijing Municipal government, has become one of the largest National Software Industry Bases and export bases.
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services (TCS) is the world leading information technology consulting, services, business process outsourcing and engineering organizations. TCS achieved this by creating and perfecting a unique method of global deployment and delivery of high quality, high value services and products in IT consulting and business process outsourcing. Known as the “Global Delivery Model,” this strategic services delivery concept has reshaped the IT services industry. TCS reported consolidated revenues of US$2.24 billion in the fiscal year 2004-2005. The company is listed on the National Stock Exchange and Bombay Stock Exchange in India.
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
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Under the guidance of NDRC, supported by Beijing Municipal Development and Reforms Commission (BMDRC), Beijing Municipal Science and Technology Commission, Tianjin Municipal Development and Reforms Commission (TMDRC), Sino-India Cooperative Office (SICO) is set up to represent the three National Software Export Bases (NSEB) of Beijing and Tianjin.