TCS unveils its largest campus in US

GETTING CLOSE: TCS says the campus will create closer ties with its American customers.

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Cincinnati (Ohio, US): The US economy may be staring at a recession, but an Indian company is promising to bring jobs to a struggling state.

Not surprisingly, the state of Ohio rolled out the red carpet for Tata Consultancy Services (TCS), which unveiled its largest campus in America this week.

For its part, the $4.3-billion IT giant says the presence will create closer ties with its American customers.

Ohio's governor Ted Strickland showed up to help TCS open its largest North American facility in a suburb of Cincinnati.

For the state of Ohio, which has been hit hard by a loss of manufacturing jobs, the 1,000 mostly local jobs that TCS plans to bring to its North America Delivery Center will be a welcome relief.

"I think what this represents today is the kind of collaboration and cooperation that can exist across national boundaries. And I think this is an example of - I guess we could call this "insourcing", could we not?" Strickland said.

TCS is investing around $20 million in the campus called Seven Hills Park, while also taking advantage of tax incentives of a similar amount from the state of Ohio.

The company says it is yet to feel the pinch from the US economic slowdown.

"The increase in offshoring is possible because of this. If the leverage is 40 per cent, 50 per cent or 60 per cent we may go to 75, 80 per cent of offshore leverage. That automatically brings in a cost reduction. So we'll have to see how to structure the business models, but customers have not told us anything otherwise, saying that we're reducing your spend or whatever," S Ramadorai - CEO, TCS, said.

TCS will use the Cincinnati campus to service its North American customers, especially the Nielsen Company, with which it signed a $1.2 billion outsourcing deal last year.

The Indian company also plans to consolidate its consulting and support operations in North America at this facility.

According to TCS, the facility in Cincinnati is a win-win situation for the company.

It not only proves that Indian companies are creating jobs in the US, but it's also helping TCS strengthen its relationships with its clients in its largest market.