TCS eyes $2 bln revenue from emerging marts
The emerging markets strategic business unit (SBU) of the country’s largest IT services provider Tata Consultancy Services (TCS) aims to touch the revenues of $2 billion by 2011-2012.
The SBU was created earlier this year and has regions such as Eastern Europe, West Asia, South Africa and Latin America under its preview. Tata Consultancy Services will commence its Turkey operations by April 1, 2008. To start with, the SBU headed by Gabriel T Rozman will focus on growth markets such as Russia, Turkey, Hungary, Poland, Brazil, Mexico, and South Africa. The company is also planning to have strategic development centers that will cater to these regions. Egypt and Russian are two regions where the company is considering to set up its development centers. “In the next three years, we are planning to spend $50-60 million (rupees 200-240 crore) in setting up these centres in the key geographies,” said Rozman.
TCS has spend $60 million (rupees 240 crore) in five years to set up its Latin America operations. While the focus of these centers will be to support existing customers, to provide them near-shore and off-shore capabilities as well as to cater to the local market. Ecuador, for instance, contributes upwards of $30 million to the company’s revenue. Emerging Markets offer a great opportunity for TCS. It is estimated that these regions account for 25.5% of the $730 billion global IT service market, growing at a faster annual rate of 8% versus the developed market growth rate of 6%. The emerging markets strategic business unit (SBU) of the country’s largest IT services provider Tata Consultancy Services (TCS) aims to touch the revenues of $2 billion by 2011-2012. (Business Standard)
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