TCS in venture with Chinese reforms commission

New Delhi: China''s National Development and Reforms Commission, has chosen Tata Consultancy Services for a crucial joint venture for developing the IT service infrastructure in China and guide the Chinese government on software, ITeS, business process outsourcing in China, the APAC region and the international market.

The partnership is important not only because of the scale of the assignment but also because it gives the chosen firm a strong foothold in the Chinese government machinery.

The Chinese government opted for an Indian partner to take advantage of processes like SEI-CMM Level 5 as well as the ability to undertake large-scale projects.

The deal is been seen as an extension of Chinese premiere Wen Jiabao visit to Bangalore in April earlier this year, during which Jiabao had commented that India''s software prowess and China''s hardware expertise, if brought together, could help both countries scale greater heights.

About 18 Indian companies including TCS, Infosys, Wipro and others have already set up shop in China, employing about 2,000 people. Nasscom chairman S Ramadorai has said he expects the number to double to 4,000 by the end of this year.

China''s software market was worth 220 billion yuan ($26.5 billion) last year, accounting for 3 per cent of the global market. Its export volume last year, estimated at $2.8 billion, was only about a tenth of India''s.