TCS in consolidation, expansion and takeover mode

Indian’s biggest IT company Tata Consultancy Services (TCS) in a bid to become among the top 10 global IT company by 2010 is sprucing up itself with a slew of decisions.

In the current year, it will spend Rs.1400 crore in capital expenditure, of which Rs.350 crore would be spent on technology, while remaining on IT infrastructure. It is expanding its presence globally by opening software development centres in China, Latin America, Europe and Africa.

TCS is also exploring the option of merging its group IT with itself like CMC, Elxsi and Tata Technologies. However Tata Elxsi may continue to run as a standalone business as it is into animation.

Reports also says that TCS is close to acquiring two IT firms in Mexico and Brazil for around Rs.200 crore, while one is an IT services company other is a BPO.

These acquisitions would enable TCS to outsource work at lower cost than other international locations. Also owing to nearness to US and sharing the same time zone, the company can provide nearshore services to its US clients.

TCS has also reached an agreement to provide software requirements to Ferrari for its Formula One cars. It would provide IT solutions before, during and between races which would range from car electronics, safety, aerodynamics and trouble-shooting.