Top Biz News
China, India firms sign JV deal
By Liu Baijia (China Daily)
Updated: 2006-07-26 08:38
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US behemoth Microsoft, which promoted the foundation of the joint venture, is scheduled to pay US$2.1 million for a 10 per cent stake later this year and the stakes of TCS and the three Chinese companies will fall to 65 per cent and 25 per cent respectively.
Microsoft has been trying to help Chinese software companies by providing them with service contracts and training professionals for them.
The tactic is part of the US giant's strategic plan in China.
The Sino-Indian joint venture is another such effort from Microsoft, which is already a big customer of TCS and hopes to bring software companies in the two countries together.
TCS, which already has engineers in Shanghai and Hangzhou, is expected to gain a bigger share in the Chinese and Japanese markets with the support of the Chinese Government and its new local partners.
"This venture is a significant business opportunity, which is China-centric from a resource perspective, has global appeal in terms of its customer offerings and is capable of creating a Chinese domestic business on an increasing scale," said S. Ramadorai, CEO and managing director of TCS, in a statement.
Two of the three partners Beijing Zhongguancun Software Park Development Co and Tianjin Huayuan Software Area Construction and Development Co are the developers of two government-backed software parks in the Beijing and Tianjin municipalities.
The other one, Uniware Co, is a software service company in Beijing, which originated in a national laboratory.