Top Biz News

China, India firms sign JV deal

By Liu Baijia (China Daily)
Updated: 2006-07-26 08:38

A joint venture between Chinese and Indian software groups is being heralded by analysts as a golden opportunity for the two nations to benefit from each other's experience.

The biggest Indian software and IT service provider, Tata Consultancy Services (TCS) Co, and three Chinese partners announced on Monday that they will establish a joint venture named TCS (China) Co.

Eagle Zhang, a senior technology industry analyst in Beijing, believes the emergence of an industry leader with 5,000 software developers could accelerate the consolidation of the outsourcing market in China, and help develop expertise on the management of large outsourcing companies.

In China, there are hundreds of software outsourcing firms, but the largest only has about 2,000 developers.

In a labour-intensive business like software outsourcing, TCS benefits from its more than 50,000 staff worldwide.

Chinese firms, which admire the success of Indian software companies and have been trying to learn from them, will have a real chance to develop their skills through this joint venture.

The joint venture, which TCS will have a 72.2 per cent holding in, with the rest split between the three Chinese firms, is expected to start operations from its Beijing base in September.

It was reported previously that the joint venture will kick off with 5,000 engineers, 20 per cent of whom will come from India.