TCS has inked an agreement with Mitsubishi Corporation to form a new IT services company of significant scale in the Japanese market with annual turnover of over $600 million.
"The deal, if closed by June 2014, will add about $375 million incremental revenues in FY15 (three quarter revenues from ITF).The deal is a cash and equity deal, and cash payout by TCS is $50 million, he added.
The deal also lends TCS an edge in the Japanese market with local manpower, client references as well as other Japanese clients in hi-tech, manufacturing, BFSI and retail verticals.
Japan is the second largest market for IT services, and Indian players have struggled to gain a foothold in the region. In that regard, TCS' move opens up the region favorably for the company - an additional source of revenue over the long term.