TCS’s Rs. 200-Crore Latin American Buying Spree, As Infosys Eyes French CapGemini
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source: www.business-standard.com
Even as, news comes of India’s IT major, Infosys readying itself for a French IT giant - CapGemini takeover to give it a global stature, the $4.3-billion Indian IT services provider, Tata Consulting Service (TCS), is close to acquiring two IT firms in Latin America for Rs. 200-crore.
TCS, with a considerable presence in Latin America, has completed due diligence of the targeted companies, which sources close to the development say include a business process outsourcing (BPO) firm and an IT services company, both with a 100-each headcount, and located either in Mexico or Brazil.
While, these acquisitions will enable TCS to outsource various business activities at much lower cost, compared with other international locations, Infosys’s CapGemini deal will significantly increase its credibility, enhance its branding and push its revenue volumes higher.
It was only fairly recently that TCS announced it was expanding operations in Latin America by setting up its first global delivery centre (GDC) at Guadalajara in Mexico. N. Chandrasekaran, Executive Vice-President and Head of Global Sales & Operations (TCS), had said: “Apart from a strong domestic IT market, Mexico shares a similar time zone with the US and is within 5-6 hours of flying distance from anywhere in the US, allowing us the ability to provide near-shore services for our large US client community.”
The last five years, have seen TCS set up operations in 14-countries, including major centres in Argentina, Brazil, Chile and Uruguay that employ over 5,000-persons and cater to more than 150-clients. It’s Latin American operation revenues touched $159-million (around Rs. 650-crore) in 2006-07.
