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Tata Consultancy Services Ltd (TCS), India's biggest IT services firm by sales,[link widoczny dla zalogowanych], is expecting a 20 to 25 percent growth in China in the next few years as it continues to tap China's outsourcing market, especially the financial services sector, said a top official of TCS.
N. Chandrasekaran,[link widoczny dla zalogowanych], CEO of TCS, said the company's outsourcing business in China was impacted by the economic crisis because offshore trading from the US to China had slowed down, but they were able to cash in on financial institutions in China which were relatively well protected from the crisis.
The company also plans to enter the utility and energy outsourcing sectors in China in the future, according to Chandrasekaran.
TCS has over 30 global and domestic clients from the financial services, manufacturing,[link widoczny dla zalogowanych], telecom and government sector in China. It has said earlier that it was going to increase its work force in China from 1,100 at present to 5,000 by 2014.
"China is a large economy and a market we focus on, and our intent is to make China an offshore hub for Asian countries," said Chandrasekaran.
According to consultancy firm IDC, offshore software-development revenue from China is expected to more than double to $6.78 billion in 2013 from $2.72 billion in 2009.
The company wants to reduce its dependence on the US and Europe,[link widoczny dla zalogowanych], and increase its presence in growing markets such as Asia-Pacific and the Middle East and Africa, which accounts for about 7 percent of its revenue.
Mumbai-based TCS earned revenues of $1.5 billion in its second quarter of the 2010 fiscal year, 5.3 percent of which came from the Asia Pacific region, where Japan, Australia,[link widoczny dla zalogowanych], and China are key markets.
TCS entered China in 2002 and has a stake of about 66 percent in a joint venture, TCS China, which it formed with three Chinese companies in 2006. Microsoft Corp joined the venture in 2008 with a share of 8.7 percent.