TCS, Mitsubishi to set up software services firm in Japan

India's largest IT services exporter Tata Consultancy Services (TCS) Monday said it has tied up with Japan's Mitsubishi Corporation to set up a software services company that will be operational in Japan from July this year.

The two companies said in a joint statement that they have signed a "definitive agreement" for setting up the new entity, in which TCS will hold the majority 51 percent stake, while Mitsubishi will control 49 percent share.

As part of the deal, TCS' Japan unit Nippon TCS Solution Center will be merged with Mitsubishi's IT Frontier Corporation to form a single entity.

The transaction will create a new IT services company of significant scale in the Japanese market, the statement said.

"This strategic transaction signifies our serious commitment to the Japan market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market," N. Chandrasekaran, chief executive officer and managing director of TCS, said in a statement.

"We deeply value the partnership with Mitsubishi Corporation and look forward to leveraging our mutual strengths in the Japan market" he said.