TCS hikes stake in Mitsubishi JV

Tata Consultancy Services (TCS), a global lT services, consulting and business solutions organisation, today announced that it is increasing its holding in TCS Japan, a joint venture between TCS and Mitsubishi Corporation (MC), one of Japan's largest integrated business enterprises.

Following the stake hike, TCS will hold 55 percent equity in TCS Japan, from the existing 51 percent, when the JV was established in July 2014 - and Mitsubishi Corp will hold 34 percent. The partners have reiterated their commitment for the Japanese market, and to the success of the joint venture. In terms of governance of operations and management will remain unchanged by the share acquisition. TCS says the hike in equity is the latest in a series of investments that the company has made in recent years to cater to the specific needs of Japanese corporations. To augment the local workforce and gain scale, a Japan-centric Delivery Center (JDC), with enhanced language support and heavy localisation of global business practices, was set up in 2015 within TCS Sahyadri Park in Pune, lndia.

More recently, TCS chose Tokyo to set up its inaugural Pace Port, a creative hub to catalyse technology-led business innovation for Japanese customers. The company says through leveraging a unique hybrid model combining deep domain knowledge, technology expertise, and strong global and local execution, TCS Japan has achieved double-digit revenue growth in constant currency terms in each of the last two years, making it one of the fastest growing lT services firms in its class in Japan.

"We are pleased to note that Mitsubishi Corporation is now more assured of the partnership, having experienced TCS' services as a customer over the last 5 years, and that both companies continue their strong collaboration to grow the business together. Our joint venture has been a game-changer in the Japanese market, bringing scale and impact as companies look for technology partners that can help them ride the waves of digitalisation and heightened global competition," said Amur S Lakshminarayanan, president and CEO, Representative Director, TCS Japan.

"TCS' enhanced stake is a reflection of our steadfast commitment to our customers and our associates in Japan, and our longer term vision for the market. As our joint venture continues to grow in scale and sophistication, we look forward to playing a bigger role in our customers' transformation journeys to become Business 4.0 ready," added Lakshminarayanan.