Tata Consultancy expands in SA

31 October 2007

Global information technology (IT) services provider and outsourcing company Tata Consultancy Services (TCS) has in partnership with an empowerment partner launched a local subsidiary, TCS South Africa, to strengthen and expand its operations in the country.

“We see South Africa as a key strategic market for TCS and also as a gateway to southern and central Africa,” TCS chief executive and managing director Subramaniam Ramadorai said in a statement last week.

“Through our own subsidiary, we will be well-placed to contribute to the economic growth of the country and its businesses by bringing in global best practices and world-class technology solutions.”

TCS is part of the US$29-billion Tata Group, which already has extensive operations in South Africa through subsidiaries like Tata Motors, Tata Steel and VSNL, which is the largest single shareholder in South Africa’s second landline operator, Neotel.

Ramadorai said the new model would help the company make a greater contribution to the South African economy by investing in the skills of its IT professionals by providing world-class training, and also bringing global best practices to help increase the competitiveness of South African businesses.

Opening a subsidiary is also in line with TCS’s global strategy to have a direct presence in the countries in which it operates.

The statement adds that TCS South Africa will have equity participation from local black economic empowerment groups to ensure a high level of social governance and localisation of services and skills.

“To help its customers in South Africa, TCS has already created a near-shore delivery capability in Johannesburg, from where we are providing support services for our financial services products implemented in South Africa,” TCS chief operating officer N Chandrasekaran said.

“The South African operations will emerge as a hub to serve customers in the southern and central parts of Africa.”

TCS already does business in South Africa, with the government as well as with leading companies in the banking and financial services, manufacturing, energy, telecommunications and retail sectors.

SAinfo reporter

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