Billion Dollar Stock-in-Service Barter Deal By India’s TCS Software
Giant
Tata
Consultancy Services (TCS) has fashioned a 3 to 5 year agreement
with German telecommunication company T-System, which is a unit of
Deutsche Telekon.
(T-System
employees 55,000 and recorded $16.61 billion in revenue last year.
TCS has a presence in 34 countries and generated revenues of $2.97
billion in fiscal year ending March 2006.)
TCS will take
an ownership stake of 10% in exchange for providing $1 billion in
services (the value of the contract).
The
stock-in-service barter transaction will provide predictability in
the long term for TCS and gives T-Systems the comfort of getting
adequate attention in terms of manpower for the job.
