TCS scouts for big buy in Australia

Tata Consultancy Services (TCS) is once again negotiating to make a "significant" acquisition in Australia, the company's chief executive Subramaniam Ramadorai confirmed yesterday.

Barely a year ago, the company had snapped up Melbourne financial software firm FNS for $26 million.

The acquisition would be the third big Australian buy by an Indian major, after Infosys paid 31 million US dollars for Melbourne-based development company "Expert Information Systems" in 2003.

"We are looking at another acquisition in Australia that is still in negotiations, which for commercial reasons I cannot name. It is significant and it will complement our current operation here. TCS has a healthy appetite for acquisitions across the globe but they must make business sense and provide synergy to our current operations. We have made a number of very successful acquisitions in many countries, one local example of which is FNS," The Australian quoted Ramadorai as saying in an exclusive interview.

TCS is one of India's largest off-shoring companies, with a profit of 60 billion rupees.

TCS's operations in Australia are smaller than those of its two key Indian rivals - Infosys and Satyam Computer Services - with the company employing 250 staff, of which 45 are Aussies.

On the other hand, the company has 72,000 staff world wide, of whom 7000 are foreigners.