'It's about cooperation rather than competition'

TCS has formed a JV with the Chinese government. Would this help compete

with Chinese IT players?



The partnership with the Chinese government will help TCS better understand

China's IT needs. Our main objective is to build the JV as an industrial-scale

outsourcing company and to be a role model for the Chinese IT Industry. Chinese

partners are also involved in the joint venture-Beijing Zhongguancun Software

Park Development, Uniware, and Tianjin Huayuan Software Park Construction and

Development-in addition to Microsoft.

The JV targets global customers in all geographies. Which of your

customers are interested in China-based services?



The JV will focus on outsourcing to key global markets including the USA,

the UK, Europe, and the Asia-Pacific region as well as the Chinese domestic

market.

Don't you think that Chinese partners will gain expertise through this

JV?



This JV is about creating a business and a market together-it's about

cooperation rather than competition. When Premier Wen Jiabao visited TCS

facilities in India, he spoke of China and India being 'two pagodas', saying

that a merging of Chinese and Indian skills could produce an unbeatable

combination. TCS's operations in China are an example of this. TCS China is

the only company assessed at CMMI and P-CMM Level 5 and is the first WOFE

(wholly-owned foreign enterprise) in China. Chinese government recognizes the

pioneering role that TCS has played, making S Ramadorai an honorary IT advisor

to the government of Hangzhou and Qingdao.

Our influence as a role model for the Chinese IT industry extends outside

this JV. TCS has been focusing on creating other intellectual investments,

including: bringing the TCS-pioneered 'offshore development methodology'

into China and training local Chinese professionals on software project

management. This would help to manage large teams and deliver

industrial-strength projects from China and building local partnerships and

alliances.

Currently, China's world-class capabilities are limited to tasks such as

programming, testing, and repetitive business processes. How would Indian

companies convince global clients to outsource large or mission-critical

projects to their China development centers?



According to a statement issued by the US-China Economic and Security Review

Commission in April 2005, China is rapidly becoming a major force in developing

new technologies. China is looking to build its services industry rapidly. This

is one of the main reasons why this JV is being set up. TCS's China operation

is proof that this can be done successfully. For example, our global delivery

center in Hangzhou successfully caters to our clients in the US, Europe, and

APAC. Of our 220 employees in China, about 90% are Chinese.

How much would this add to your bottom line?



The Asia-Pacific region, including China, is a key growth market for TCS and

we expect our Chinese operations to add significantly to TCS's growth in the

years ahead. We are still in talks with our partners to firm up the investment

plan for the JV. By this year-end, we should be in a position to talk about the

quantum involved.

Are you planning similar arrangements in other non-English speaking

geographies, for example Japan?



We do create IP in countries like Japan. TCS was the first Indian IT company

to set up operations in Japan, in 1987. We also set up a global delivery center

in Yokohama in 2002.