TCS, Mitsubishi in JV, to invest $5 million in delivery centre

BANGALORE: Tata Consultancy Services Ltd (TCS), India's top software exporter, and Japan's Mitsubishi Corp will invest $5 million in a joint venture to set up a delivery centre in Japan, TCS's chief executive said.

TCS expects to raise revenue from Japan to at least half a billion dollars in four-five years, N. Chandrasekaran told reporters on Wednesday.

The company's annual revenue from Japan is about $100 million, he said.

TCS will hold 60% stake in this joint venture entity whereas 40% will be held by the Japanese company Mitsubishi Corp. The JV is important for TCS as the company derives only 1% of its revenues from the Japanese markets and 7% from the Asia Pacific region.

This is a good chance in which TCS can leverage a partner like Mitsubishi and get an entry into world's third largest economy and provide software services there. This will be positive in the sense that the market share of TCS in Japan will rise as a result of the partnership with Mitsubishi and also the compnay will also have a presence across all geographies.