TCS buys out Brazilian IT services JV
29 May 2007 | 1479 views | 0
Source: Tata Consultancy Services
Tata Consultancy Services (TCS), a leading global IT services, business solutions and outsourcing firm, announced that it has increased its stake from 51% to 100% in the joint venture IT services company TCS do Brasil.
TCS acquired Grupo TBA's 49% stake for a consideration of $ 33.4 million.
TCS do Brasil recorded a top line of $66.5 million for the year ended March 31, 2007 and has over 1700 employees.
In 2002, TCS entered the emerging high growth Brazilian market through a 51:49 joint venture with Grupo TBA. In the synergistic relationship, Grupo TBA brought local market knowledge and client relationships, while TCS contributed world class methodologies, process and quality systems.
Over the last 5 years, TCS do Brasil has been extremely successful in scaling its business, achieving market penetration and enhancing delivery capabilities thereby resulting in a high level of customer satisfaction.
The company operates delivery centers in Sao Paulo and Brasilia and provides services to over 30 clients including ABN Amro, Goodyear, Equifax and Brasil Telecom, among others. It was the first company in Brazil to achieve CMMI Level 5 certification, the highest quality standard in the industry.
Grupo TBA & TCS have also signed a co-operation accord by which they will continue to jointly service clients, in areas of complementary services, offering to the Brazilian market a full services capability in IT services, consulting and products.