Information technology consulting company Tata Consultancy Services (TCS) has announced that it is increasing its holding in TCS Japan Ltd, which is a joint venture with Mitsubishi Corporation.
TCS will now hold 66% equity in TCS Japan – up from 51%, when the joint venture was established in July 2014 – and Mitsubishi will hold 34%, the company said. Current governance of operations and management will remain unchanged by the share acquisition, it added.
“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 digitalization and heightened global competition,” said Amur S Lakshminarayanan, president and chief executive officer, representative director at TCS Japan.
According to the company, the increased equity is the latest in a series of investments that TCS 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 with enhanced language support and heavy localization of global business practices was set up in 2015 within TCS Sahyadri Park in Pune, India, the company added.
The IT consultancy firm also said that based on 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 IT services firms in its class in Japan.
Recently, TCS chose Tokyo to set up its inaugural Pace Port, which is a creative hub to catalyze technology-led business innovation for Japanese customers.
TCS’ enhanced stake is a reflection of its commitment to customers and associates in Japan, and its longer term vision for the market, added Lakshminarayanan.