First Offshore Vendor to Crack the Top 10 in U.S. AM Market Share according to IDC

New York, 21^st November, 2006

Tata Consultancy Services (TCS), (BSE: TCS.BO, NSE: TCS.NI), a leading global IT services and consulting firm, today announced that IDC, a leading provider of global IT research and advice, has ranked TCS number 8 in market share among U.S. Application Management Services (AMS) vendors. TCS is the first offshore vendor to be in the Top 10 list in the U.S.

The IDC report, "Worldwide and U.S. Application Management Services Vendor Shares, 2005: The IDC Top 10 Vendors (IDC#203995, October 2006)," evaluated the top vendors based on geographic region and discrete application management services revenue for 2005. IDC noted that TCS has been investing heavily in shifting the core of its business from development projects and maintenance contracts to high-value outsourcing, with the attendant operational responsibility of a customers IT environment.

The report forecasts that the worldwide AMS market will grow to $32.2 billion in 2010 for a 9.5% compound annual growth rate (CAGR). The more mature U.S. market is growing somewhat more slowly and is expected to reach almost $13.4 billion in 2010, reflecting a 7.7% CAGR.

"As the worldwide application management services market continues to grow, competition among vendors is heating up. For the first time, an offshore vendor - TCS - has entered the U.S. top 10 market share list," said Barry Rubenstein, program manager for Application Outsourcing and Offshore Services at IDC. "This represents the fruits of TCS' continued investments in shifting from a developer and maintainer of applications to a true outsourcer, a development that IDC has been advocating for quite some time."

In the AM space, IDC's research shows that the hosted application model is set to expand rapidly as it offers repeatable processes and a lower-cost alternative to customized, labor intensive outsourcing for mid-market or even enterprise customers in certain situations.

"With the increasing rate of technological change in the application management and development market, TCS has developed significant run-rate and expertise in helping customers modernize and transform their IT environments," said N. Chandrasekaran, head of global sales and operations, TCS. "This recognition by IDC validates our approach to serving customers globally."

"Application development and management continues to be one of our strengths in the IT services marketplace and we remain focused on delivering higher IT service-level performance across the entire applications portfolio to meet diverse business needs," added N. Chandrasekaran.

About Tata Consultancy Services

Tata Consultancy Services Limited (TCS) is the world leading information technology consulting, services, business process outsourcing and engineering services organization that envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value. TCS achieved this by creating and perfecting a unique method of global deployment and delivery of high quality, high value services and products in IT consulting and business process outsourcing. Known as the "Global Network Delivery Model," this strategic services delivery concept has reshaped the IT services industry.

More than 95% of TCS customers reward the company's reliability, passion, creativity, and unique ability to handle the broadest range of their IT needs by continually extending and deepening their partnerships with TCS. With over 70,000 of the world's best trained IT consultants located in 35 countries, TCS is uniquely positioned to deliver its flexible world class services seamlessly to any location. TCS reported consolidated revenues of $2.97 billion (U.S.) in the fiscal year 2005-2006. The company is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information:www.tcs.com