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Tata to boost China's outsourcing market

Tata Consultancy Services, the outsourcing arm of the Tata conglomerate, has signed a letter of intent with Microsoft, Uniware and two mainland software parks to establish a joint-venture IT outsourcing company which is expected to begin operations early next year.

Details of the deal were still being discussed, but Tata would be the majority shareholder, with Microsoft a strategic investor and anchor customer, said Tata's Asia Pacific director Girija Pande.

He said the joint venture would provide outsourcing services to local, regional and multinational clients, as part of the central government's aim 'for the country to gain a position in the global IT outsourcing market'.

'It will take some time but the government is thinking very strategically. There will be challenges, but we have operated in China for three years already. We have built that initial infrastructure so now we are in a position to expand further.'

Mr Pande said growth opportunities for outsourcing services in the mainland included e-government. Stuart Biggs

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