TCS wins $100-million Bank of China contract

By Our Corporate Bureau | 04 Dec 2006

Mumbai: Tata Consultancy Services (TCS) has won a $100 million contract from the state-run Bank of China (BOC). This is one of the major IT-related deals signed by a Chinese bank ahead of the opening up of the country's banking sector to foreign competition by December 11.
Under the agreement, details of which are still not known, TCS will provide a range of banking solutions to BOC.

While it is a major breakthrough for Indian IT companies, which are aggressively expanding their operations and bidding for government contracts in China, the TCS deal is expected to also fortify Beijing's commitment to the World Trade Organisation (WTO).

TCS and its Chinese partners, meanwhile, expect to get a business licence for their Beijing-based joint venture soon. The joint venture company will be located in Beijing's Zhongguancun Software Park (z-Park) and will provide IT services and solutions to China's domestic market as well as major markets particularly Japan and the rest of Asia-Pacific region, the US, and Europe.

All major Indian IT giants, including TCS, Infosys, Satyam, Wipro, NIIT, and i-flex have a presence in China. However, they are mainly servicing their multinational customers in the country. They are also targeting the huge domestic Chinese software market as well as the Japanese and South Korean markets.