Tata offers free IT services to lure banks

[OhioChick]

Source: Times Online

April 23, 2008

India's largest IT outsourcing company is to give away services as it fights to import more jobs to the subcontinent and to persuade its most important clients - the West's beleaguered banks - to sign new contracts.

Shares in Tata Consultancy Services (TCS) fell by more than 10 per cent in Bombay yesterday - a record one-day fall for the stock - after India's largest private sector employer missed earnings targets and reported its first quarter-on-quarter decline in earnings in three years as a result of the slowdown in the United States.

In response, TCS, which relies on the financial sector for more than 40per cent of sales, said that it would bear the cost of “transition work” on several big outsourcing contracts.

Transition charges, which previously would have been paid by clients, cover preparations made before jobs are transferred to India from the City and Wall Street.



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