Nov 24, 2006

Microsoft buys 10 per cent stake in TCS China

Microsoft Co has bought 10 per cent stake in TCS China, a joint venture promoted by India's largest IT services firm Tata Consultancy Services (TCS) and three state-owned Chinese companies.
The US software behemoth on Thursday signed an investment agreement to join the JV, a company release said here. Though the company has not disclosed the investment figures, sources familiar with the development said that Microsoft would pump in $1.4 mil lion for 10 per cent stake in the venture.

With Microsoft's entry, the shareholding of the JV would change. TCS Asia Pacific would now own 65 per cent stake and the Chinese partners 25 per cent, the release said. TCS had last year formed the joint venture with three Chinese companies backed by th e local governments of Beijing and Tianjin.

"TCS China would allow us to provide our clients with the best in technologies at affordable prices, with services delivered at TCS' known global quality processes," Mr Girija Pande, Asia Pacific Head, TCS was quoted as saying.

TCS China would focus on manufacturing, telecom as well as government sectors, it said, adding the company would also concentrate on key technologies with centre of excellence in Microsoft.

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