Mitsubishi deal to add $375 million incremental revenue for TCS in FY15
MUMBAI: India’s largest information technology company Tata Consultancy ServicesBSE 0.16 % has merged its Japanese unit with Mitsubishi Corp’s IT arm, growing its revenues six-fold and giving it scale in the second-largest market for software services in the world.
Indian IT firms have struggled to build scale in Japan, a market dominated by homegrown companies and Chinese outsourcing firms. Japan’s IT services market is worth over $100 billion (Rs6 lakh crore), but has contributed less than 2% to the Indian industry’s revenues according to the National Association for Software and Services Companies.
“The strategic transaction signifies our serious commitment to the Japan market. TCSBSE 0.16 % will now have the scale, strong local presence and full range of global capabilities to serve Japanese firms effectively and accelerate our growth in Japan market,” N Chandrasekaran, CEO, TCS, said.