Tata Consultancy Services Ltd., India’s largest computer-services provider, said its China venture with Microsoft Corp. won a “multimillion dollar” order from the China Foreign Exchange Trade System.
“Tata Consultancy Services (China) Co. will provide a foreign exchange trading system, which will be completed within 18 months,” Girija Pande, head of Tata Consultancy’s Asia-Pacific operations, said at a briefing in Beijing today. The China Foreign Exchange Trade System, also known as the National Interbank Funding Center, is controlled by the central bank, People’s Bank of China.
Tata Consultancy is expanding in China to tap a software- services market whose sales are forecast to more than triple to 29.43 billion yuan ($3.8 billion) by 2009, from 8.7 million yuan in 2005, researcher Analysys International said. The venture may help Mumbai-based Tata Consultancy win more orders from companies operating in China, the world’s fastest-growing major economy.
The China Foreign Exchange Trade System provides a platform for foreign exchange trading, yuan lending, bond trading, interbank foreign exchange trading, settlement of trade and other services authorized by the central bank.
Tata Consultancy on 9 February said it won a $98 million, two- year order from Bank of China Ltd., the nation’s second-biggest bank, to connect 5,000 of its 22,000 branches. The company plans to combine its units in the cities of Shanghai, Hangzhou and Beijing with the venture, Chief Executive Officer S. Ramadorai said, without providing a timeframe.Tata Consultancy has 800 employees in China and forecasts increasing the number of workers, including those at the venture, to 5,000 within five years.
Microsoft owns a 10 % stake in the venture, three companies backed by the local governments of Beijing and Tianjin have a combined shareholding of 25 %, and the remainder is held by Tata Consultancy.
Tata Consultancy Services (China), which officially started operating today, provides services such as software development and call-center management for domestic businesses as well as the Chinese operations of global companies.
The venture has an initial investment of $12 million, Pande said in July last year. It will likely become profitable in 18 months, Ramadorai said on 28 July .Tata Consultancy reported net income rose 47 % to a record 11 billion rupees ($249 million) in the third quarter ended 31December, as it raised fees and cut costs by shifting work from clients’ offices in the U.S. to Latin America, China and India. Sales increased 41 % to 48.6 billion rupees.