TCS to expand operations in China

Tata Consultancy Services expects its Chinese operations to figure amongst its top revenue generator in the Asia-Pacific region.

Currently, the Asia-Pacific contributes 3.6 per cent to the over $1 billion firm, with China accounting for a small part.

In an effort to drive its China operations, TCS is ramping up its employee head count and setting up another development centre there.

As part of its expansion plans with in the Asia-Pacific belt, it is setting up subsidiaries in Thailand and Indonesia.

The funds are routed through TCS Asia Pacific, the holding company for the region, headquartered in Singapore. Japan, Australia and New Zealand are the top three contributors to Asia-Pacific revenues.

TCS head and regional director, Asia Pacific, Girija P Pande said: "The China story cannot be ignored. Our revenues from China may be small but it is growing and doubling. In the next three years we expect China to figure amongst the top three revenue generator in the region. We see China becoming a resource base for our company's operations in the Asia-Pacific region "

TCS was the first Indian software services company to set up shop in China in 2003. Headquartered in Shanghai, it has a development centre in Hangzhou.

Pande said: "We are setting up another centre that is expected to house 250 to 300 professionals. The location is still being finalised."

Currently, the headcount in this region stands at 200, with 90 percent of them being of Chinese nationality, which will be increased between 750 and 1000.

Besides the expansion in headcount, TCS expects China to provide regional offshore capabilities. Explains Pande: "We have customers in Japan, Korea, Taiwan and Hong Kong who are a lot more comfortable with China. This keeping in mind the language and cultural issues. The onsite and offshore model applies in these countries as well. Now as part of offshore capabilities, we would like to give them a choice of China as well. Thereby replicating the global delivery model capability we have built in India."

TCS has kicked off this initiative albeit in a small way. The company has undertaken two projects each from Japan and Korea in its center in China.