Indian IT Co. Enters CIS Market
India's largest software developer and IT services provider Tata Consultancy Services has announced that it will open an office in Moscow in March to sell its goods and services in the countries of the former USSR. This information was made public in Mumbai on Thursday by TCS vice president Gabriel Rozman, who said that the move was part of a general strategy to expand in throughout Eastern Europe, the Middle East, Africa and Latin America. According to TCS chief N. Chandrasekaran, 25.5 percent of the IT services market, worth $730 billion, is in developing countries, and that market is growing by 8 percent per year, compared to 6 percent in the developed world.
TCS is a subsidiary of the highly diversified Indian corporation Tata Group, which was founded in the 19th century. In the financial year ending March 31, 2007, the group received proceeds of $4.3 billion and has an operating profit of $1.13 billion. TCS specializes in programming on order (offshore programming) and IT services. Among its clients are British Telecom, Kellogg's, Ford Motors, Deutsche Bank, the U.S. Defense Department, Compaq, Johnson & Johnson, Nike and KLM.
The opening of a TCS office in Moscow will create serious new competition on the market for systems integration and outsourcing. According to Sergey Karelov of the League of Independent IT Experts, software development accounts for only 20 percent of TCS's receipts. Therefore, it will provide strong competition to Russian companies engaged in software deployment and consulting, such as IBS, Lanit and ISG. Karelov says that TCS's financial resources are its main advantage, enabling it to take on jobs that would be too large for the smaller Russian companies. ISG general director Alexey Kudryavtsev is unconvinced of that, however. “The Indians have no chance of receiving a large project,” he said. “For that, you need a lobby.”
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All the Article in Russian as of Jan. 21, 2008
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