Indian offshoring firm Tata Consultancy Services will fold its Chinese operations into a joint venture the company set up with Microsoft Corp in Beijing earlier this year, according to Indian media reports.
According to report in The Hindu, the company currently has some 650 employees in China after setting up shop in the country in 2002. This number is less than one percent of the more than 70,000 TCS workers worldwide.
But a number of Indian firms have signaled their intention to boost their Chinese workforces to escape some of the wage pressure in India, diversify their operational risk, and target more Chinese companies as well as multinational companies looking to expand into the Chinese market.
TCS has a 65% stake in the Microsoft joint venture. Microsoft owns another 10%, and three Chinese firms combine for 25% ownership, The Hindu reports. According to Girija Pande, TCS’ Asia-Pacific head, merging the company’s separate Chinese subsidiary into the existing Microsoft venture will consolidate TCS’ brand and better position it to win deals, a separate report in Indian publication Zee News states.