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TCS takes aim at IBM, doubles US staff

Tata Consultancy Services plans to more than double its US staff next year in an expansion that takes aim at a key market for IBM and Accenture Ltd.

Tata, the information-technology services arm of one of India's biggest private industrial groups, is known for performing low-cost software development and maintenance work in India.

The company is boosting its US payroll to 1,500 employees from 600 as it focuses on providing more advanced IT consulting services in the United States, a senior executive said on December 12.

Tata wants to diversify its revenues, selling consulting services alongside its bread-and-butter software development, Surya Kant, president of TCS America, said in an interview with Reuters.

The company wants a bigger chunk of the global market for information-technology services, which market-research firm Gartner Inc. estimated was worth about $600 billion in 2004. Software support, development and integration accounted for less than a third of that spending.

That will put it up against International Business Machines Corp. and Accenture. But Tata's planned work force of 1,500 will be far smaller than that of its US rivals.

Accenture has about 29,000 workers on its US payroll. IBM, which generates about half of its revenue from services, won't say how many of its 190,000 global services employees are in the United States, but analysts say the force numbers in the tens of thousands.

Tata could become a draw for young hires. The Indian company plans to recruit half of its new employees from US college campuses and half from rivals such as the IBM and Accenture.

"As you go into consulting, you require more and more local flavour because businesses are run differently from country to country," Kant said. "It's important to have people who understand the local market, who understand local businesses."

In its most recent fiscal year, about 60 per cent of Tata's $2.2 billion in revenue came from the United States, but most of that was for work performed in India.

( www.financialexpress.com)

 
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