Pros
Security is the main plus point in Tata companies. Tata Consultancy Services, India's largest IT services vendor, has announced the acquisition of Chilean business process outsourcing provider Comicrom for $23 million. The deal marks a further expansion of Tata's horizons in the financial services sector, offering a potentially lucrative foothold for the firm in the Spanish speaking world. The Comicrom acquisition is however unlikely to be a part of a strategy to move work from the Pearl deal offshore, however, because TCS has stated that it will keep such work in the UK for the foreseeable future. Instead, the acquisition gives TCS a major presence in Latin America, and a low-cost workforce to help win clients requiring Spanish speakers.
Cons
Employees are not treated well and respected by the management. TCS first entered Latin America in 2002, when it formed a joint venture with Comicrom for IT services of which the domestic vendor owned 49%. TCS will gain complete ownership of the venture through the acquisition. Over the last three years, TCS has won several clients in the region including Grupo Santander, General Motors, ING, Goodyear and Brasil Telecom, and claims to be the only Indian IT company with a significant presence there. TCS plans to set up a delivery center in San Paulo, Brazil, in order to support its application maintenance deal with ABN Amro, which was announced in September. It is also expanding its center in Uruguay by recruiting employees from Argentina.
