Tata Consultancy Services Sets Up Strategic Unit to Expand Presence in Emerging Markets
- New strategy to diversify revenues and risks, expand business in emerging markets and explore new sources of talent
- New Unit will focus on emerging markets across Eastern Europe, Middle East, Africa and Latin America
Tata Consultancy Services (TCS), (BSE: TCS.BO, NSE: TCS.NS), a leading IT services, business solutions and outsourcing firm, announced today that will consolidate its operations in Eastern Europe, The Middle East, Africa and Latin America into a strategic business unit and appointed Gabriel Rozman, as Executive Vice President – Emerging Markets.
Mr. Rozman, who has led TCS’ operations in Latin America, Spain and Portugal for the last 5 years, will be responsible for expanding the company’s presence and growth in emerging markets in order to further diversify its revenue base as well as expand its Global Network Delivery ModelTM.
“In order to further increase our market leadership in emerging markets and build a strong franchise in these geographies, we are setting up a new strategic business unit to help leverage new opportunities in Eastern Europe, The Middle East, Africa and Latin America,” said N Chandrasekaran, Chief Operating Officer and Executive Director of Tata Consultancy Services. “With emerging market economies growing sharply, we believe this is the right time to further extend our presence and partner with customers in these geographies.”
Emerging markets today account for 25.5% of the $730 billion Global IT Services market, growing at a faster annual growth rate of 8% versus the developed markets rate of 6%, according to analyst estimates. Goldman Sachs estimates that the economies of BRIC countries (Brazil, Russia, India, China) as well as Mexico are rapidly expanding and will account for approximately 50% of the world GDP by 2050. “Our plan for emerging economies include three immediate strategic priorities – upgrading our presence significantly in the BRIC economies, entering new markets and expanding our network of global delivery centers,” said Gabriel Rozman, Executive Vice President, Emerging Markets.
TCS has already demonstrated an industry-leading ability to take advantage of opportunities in emerging markets. The company’s presence in Latin America spread over 12 countries in the region has developed into a large operation in just five years, which caters to over 150 clients, employs 5,500 local professionals and generates 4.7% of TCS revenues (at the end of Q3 2007-08). The company also has set up global delivery centres in six countries across the region. The company also has a significant presence in China, South Africa, United Arab Emirates and Eastern Europe.
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development.
A part of the Tata Group, India’s largest industrial conglomerate, TCS has over 108,000 of the world's best trained IT consultants in 47 countries. The Company generated consolidated revenues of US $4.3 billion for fiscal year ended 31 March, 2007 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.
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