TCS All Set To Buy 2 Firms In Latin America For Rs 200 Cr

Mumbai: Tata Consulting Service (TCS), India''s leading IT services provider, is close to buy two IT firms in Latin America. The estimated value of these two firms is around Rs 200 crore. TCS, with a considerable presence in Latin America, has completed due diligence of the targeted companies. These companies have a headcount of nearly 100 each. These acquisitions would enable TCS to outsource various business activities at much lower cost compared with other international locations. TCS announced some time ago that it was expanding operations in Latin America by setting up its first global delivery centre (GDC) at Guadalajara in Mexico. Over the last five years, TCS has set up operations in 14 countries including major centres in Argentina, Brazil, Chile and Uruguay, employing over 5,000 persons and catering to more than 150 clients. Revenues from its Latin American operations touched $159 million (around Rs 650 crore) in 2006-07. The Indian IT major also acquired 100 per cent control of its Brazilian joint venture, TCS do Brasil, which has over 1,700 employees and recorded revenues of $66.5 million (around Rs 273 crore) in FY07.