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Microsoft expands IT outsourcing role

Joint venture extends Microsoft's reach in China

Microsoft has signed an investment agreement with Tata Consultancy Services, completing a deal announced last year to set up a joint-venture IT outsourcing company in China.

Under the terms of the agreement, Microsoft will hold a 10 percent stake in the venture, called TCS China. The size of Microsoft's investment was not disclosed.

TCS and Microsoft announced plans in June 2005 to set up an outsourcing company in China. At that time, the venture was billed as a role model for the development of China's software industry.

Based in Beijing's Zhongguancun Software Park, TCS China offers IT outsourcing and other services to companies around the world, including the US, Europe and Asia.

In addition to TCS China, TCS has its own outsourcing operations in China, including a development centre in Hangzhou, in eastern China, and offices in Beijing and Shanghai. Those facilities employ a staff of 600, the company said.


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