TCS plans alliances to set up base in Pakistan

Tata Consultancy Services (TCS) has initiated talks with Pakistan Software Houses' Association (P@sha) and Internet Association of Pakistan (IAP) to ink partnership deals with the organisations' members to set up operations in Pakistan.

A top-level team from the global software major, headed by chief executive officer and managing director S Ramadorai, visited Lahore, Karachi and Islamabad in May this year, according to sources.

The delegation had held meetings with Pasha officials, member companies, business groups and academia there. The team, in its attempt to "explore areas of synergy and possible collaborations", also met top government officials and member companies of IAP.

P@sha is the representative body of software companies in Pakistan, while IAP is the umbrella organisation of Internet services providers in that country. Confirming his visit to Pakistan, Ramadorai said, "It was a good trip."

He, however, declined to divulge further details of the visit or the companies TCS is in talks with.

"We will reveal the names after finalising deals," Ramadorai said.

The software industry in Pakistan is estimated at $100 million. It has around 350 software and services companies, including call centres and business process outsourcing firms.

Pakistan's software industry caters to both the domestic and international markets which also covers other geographies including the US, UK, South Africa and Middle East.

TCS move to explore the Pakistan market follows a recent Tata Group strategy, announced by chairman Ratan Tata, for the Saarc (South Asian Association of Regional Countries) region. Ratan Tata had visited Pakistan early this year and had met top officials including Prime Minister Shaukat Aziz.

Tata, during his visit, said that Pakistan would be the ideal destination for investments in software, hotels and automobiles due to the similarities between the two nations.

TCS would be the first Indian company to set up operations in Pakistan, even though Tata Group already has a presence through its global brand `Tetley'.

The group is selling its range of black tea, blended at a facility near Karachi. This is done through a joint venture partnership with Lakson Group of Companies of Pakistan, under a partnership agreement signed in January 2004.

TCS was the first Indian software company to cross the $2 billion mark in revenues, recording consolidated revenues of Rs 97.27 billion and Rs 22.56 billion in net profits in fiscal 2004-05. It has over 100 branches in 34 countries and has recently concluded a Rs 5,420 crore IPO.