OREANDA-NEWS. February 9, 2012. Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm, and Mitsubishi Corporation, an integrated global business enterprise, announced a new joint venture, Nippon TCS Solution Center, for the Japanese market.

Nippon TCS Solution Center will offer a full service suite of IT, BPO and infrastructure services to Japanese corporations. TCS Japan will have 60 per cent stake with Mitsubishi Corporation having a 40 per cent stake. The new joint venture will also establish a nearshore delivery centre in Japan.

The joint venture comes against the backdrop of a strong yen, the globalisation of supply chains and a growing trend toward overseas mergers and acquisitions, all of which act as a catalyst for the increasing globalisation of Japanese companies. This has brought heightened interest in the role of ’global IT services’ to link domestic and overseas operations.

The nearshore delivery centre will leverage Mitsubishi’s significant domestic market as well as the processes and best practices of the TCS Global Network Delivery Model (GNDMTM), to meet the various needs of Japanese companies through enhanced solutions and service offerings.

N Chandrasekaran, CEO and MD, Tata Consultancy Services, said: “Japan is a very important market for TCS and we are delighted to partner with a strong group like Mitsubishi Corporation in this market. The new joint venture will provide strong local market know-how, deep domain knowledge as well as bring in global technology best practices to help Japanese corporations effectively respond to their global IT needs.”

Mr Chandrasekaran and Hideyuki Nabeshima, senior executive vice president, Mitsubishi Corporation, have been appointed non-executive directors of the new company in a move that will see participation by senior management from both sides. Mitsubishi Corporation and TCS have already started collaborating in a wide range of areas that include establishing an IT support system, that utilises TCS’s know-how and its GNDMTM, for Mitsubishi Corporation’s overseas bases as well as implementing new employee training programmes for Mitsubishi Corporation’s business services division and for IT Frontier Co, at its training centre in Trivandrum, India.