TCS to open third centre in China by March
Business Standard — September 7, 2007

Tata Consultancy Services (TCS) is planning to open its third centre in China in the current fiscal, and increase its headcount five-fold to 5,000 by 2010.

The new centre would be established before March-end in China where the company currently has a workforce of 1,000, N Chandrasekaran, the newly apppointed chief operating officer (COO) of TCS, said on the sidelines of quality summit organised by Nasscom here.

Chandrasekaran was earlier executive vice president (global sales & operations). The management rejig anounced yesterday elevated four executive vice presidents as directors. Besides Chandrasekaran, S Mahalingam, S Padmanabhan and P A Vandrevala were also appointed as directors.

Chandrasekaran said TCS has not seen any impact on its outsourcing business from the US subprime mortgage crisis. "...We don't see any impact. Our direct presence in the mortgage area is very negligible," he said, adding, overall, the busines is good. "Financial services business is healthy, and we are on a growth path," Chandrasekaran added.

There is no evidence of pricing pressure in the short-term, and demand continues to be very strong. "Prices will not be impacted in the short-term," he said.

He expects wage increases in the IT and BPO industries to moderate from next year. Noting that wages had gone up by 12-15 per cent annually in the last 2-3 years, he expects it to taper off from next year.