The Nippon TCS Solution Centre will offer full-service suite of IT, BPO and infrastructure services to Japanese corporations.

Tata Consultancy Services (TCS) and Mitsubishi Corporation announced a new joint venture (JV) for the Japanese market.

The JV, Nippon TCS Solution Centre, will offer a full-service suite of IT, BPO and infrastructure services to Japanese corporations.

TCS Japan will have a 60 percent stake while 40 percent will be held by Mitsubishi Corporation. The new joint venture will also establish a nearshore delivery center in Japan.

“Japan is a very important market for TCS and we are delighted to partner with a strong partner like Mitsubishi. The new joint venture will provide strong local market know-how, deep domain knowledge as well as bring in global technology best practices to help Japanese corporations effectively respond to their global IT needs,” said N Chandrasekaran, CEO and MD, TCS.

The JV comes against the backdrop of a strong yen, the globalization of supply chains and a growing trend toward overseas mergers and acquisitions, all of which act as catalysts for the increasing globalization of Japanese companies. This has brought heightened interest in the role of global IT services to link domestic and overseas operations, TCS said.

The nearshore delivery centre will leverage Mitsubishi’s significant domestic market expertise as well as the global expertise of processes and best practices of the TCS Global Network Delivery Model (GNDM), to meet the various needs of Japanese companies through enhanced solutions and service offerings.

The two companies have already started collaborating in a wide range of areas that include establishing an IT support system, which utilizes TCS’ know-how and its GNDM for Mitsubishi Corporation’s overseas bases as well as implementing new employee training programs.