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Tata Sons to set up China software unit

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CIOL Bureau
New Update

MUMBAI: Tata group, which owns the country's largest software services

exporter, Tata Consultancy Services (TCS), is setting up an IT services

subsidiary in China, a TCS spokesman said on Wednesday.

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"We got the license to do business in China and a separate company,

which will be a 100 per cent arm of Tata Sons, has been registered," he

said.

Unlisted TCS is a division of Tata Sons which is the holding company of the

Tata Group, India's second largest business conglomerate by revenue. More

details would be available at a press conference due at noon in New Delhi, the

spokesman said.

The Economic Times newspaper reported on Wednesday that the China unit,

called Tata Information Technologies, would support TCS' software development

business.

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Indian IT service companies, facing a slowdown in business from the key US

market, are aggressively eyeing other regions to broaden their customer base.

Some are exploring the formation of software development centers in China to

cater to that growing market and its neighbours.

Chinese premier Zhu Rongji in January granted approval to Infosys

Technologies, India's No. 2 software exporter, to set up a branch office in

Shanghai. However, Infosys said last week its plans for a development center in

China had been delayed. The Nasdaq-listed Infosys is now considering only a

representative office in China.

Satyam Computer Services, India's No 4 software exporter, already has a

branch in Shanghai and plans to set up a software development center in China.

(C) Reuters Limited.

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