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Tata Opens Services Delivery Center in China

Tata is expanding in China even as Indian outsourcers are seeing slower revenue growth because of the economic crisis. John Ribeiro, IDG News Service

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India's largest outsourcer, Tata Consultancy Services, has set up a services delivery center in Tianjin, China.

The center will focus on the delivery of services to the local Chinese market as well as offer business process outsourcing (BPO) services to clients in the U.S., Japan and European markets, the company said Tuesday.

TCS, which already has delivery centers in Beijing, Shanghai, and Hangzhou, opened the fourth center in Tianjin to tap into local talent. The Tianjin center will be able to accommodate 300 employees per shift.

The company also announced Tuesday that it has set up an office in Shenzhen to target the south China market.

Indian outsourcing companies have been affected by the global economic downturn, posting slower revenue growth. The National Association of Software and Service Companies (Nasscom) estimates that India's IT industry will hire about 76,000 fewer new staff this fiscal year than was earlier forecast.

Larger outsourcing companies, however, will continue to add staff and open new facilities to maintain revenue growth, although that growth will likely be slower than in previous years, said Ganesh Natarajan, chairman of Nasscom, last week.

A number of Indian outsourcing companies have set up operations in China to address the local market and provide services to customers in other countries.

TCS currently has 1,300 employees in China. Most of TCS's 104,000 employees are in India.

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