TCS continues to invest in Europe

Tata Consultancy Services (TCS) has acquired French IT services firm Alti for €75m and boosted its workforce across three European countries by 1200 in the process.

Indian IT services firms are increasingly investing in Europe to provide more onshore services to their customers.

Large enterprises and public sector organisations in Europe are prefer certain services to be delivered locally. To this end TCS recently opened a delivery centre in Liverpool to as part of a contract with the Home Office, which will have more than 300 staff when the contract is fully up and running by the end of June.

The Alti acquisition will support the company’s business in France, Switzerland and Belgium. ALTI is a provider of IT services around enterprise software such as CRM.

Alti co-founder Andre Bensimon, said the agreement will benefit customers and employees.

“Supplementing our current services with TCS’ renowned global expertise will provide tremendous additional value to our clients; while our employees will secure the advantages of building their careers in a larger global organisation, which is considered a Top employer in Europe.”

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Based on some of your previous interviews with offshore service providers boasting about their investment in Europe while actually recruiting almost nobody locally, would it be worth asking how many Europeans are being retained and recruited for this work? Or will it just be the usual one-way funnel siphoning work and money offshore while importing offshore workers to replace and undercut the local workforce? Only asking, like.

I suspect this acquisition by TCS has more to do with the French Governments refusal to sell their IT workers down the river by allowing companies like TCS to ‘onshore’ cheap workers through the intra-company transfer route into France. They have no presence to speak of in France because of this, whereas in the UK our Government says no limit to such transfers, include tax free allowances as part of ‘pay’ when applying for the migrant worker visa, so companies like TCS can tick the box to show they are paying the ‘rate for the job’ required by the UKBA and bingo ‘indirectly’ resident workers jobs go.

TCS imported 2125 IT workers into the UK in the first 6 months of 2012 to work on client contracts (google FOI 1670 Tier 2 ICT Top 25 Sponsors).

Not much investment in the UK from TCS with respect to resident workers from what I can see, but then this is down to the UK government rules – why wouldn’t TCS and all of the other foreign service companies found in that FOI request want to exploit them?