Home Outsourcing TCS announces Australia expansion as 457 visas scrapped

TCS announces Australia expansion as 457 visas scrapped

Indian outsourcing giant Tata Consultancy Services has decided to set up an innovation lab in Australia as a result of Prime Minister Malcolm Turnbull's recent visit to India.

It appears to be an unfortunate coincidence as it came just before Turnbull announced that the 457 visa scheme — on which TCS and every other outsourcing company depends for much of its revenue in the country — would be scrapped.

Turnbull visited the TCS headquarters in Mumbai as part of his three-day trip to India and had a one-on-one meeting with TCS chief executive and managing director Rajesh Gopinathan.

But TCS has time to review its options as the company said, following the announcement, that it would spend the next six months deciding on where the lab should be based.

TCS is providing IT operations for at least three big Australian companies: Westpac, Qantas and AGL. All these contracts have led to a sizeable number of Australian technical staff being made redundant.

A statement issued by Turnbull's office said: "The new facility in Australia will operate as a collaborative space for TCS and its industry partners, employing the best Australian talent, and utilising the company’s vast network of expertise in innovation.

"It will complement the Turnbull government’s Innovation and Science Agenda, delivering crucial investment across a range of sectors, including financial services, aviation and retail."

TCS already has nine such labs in the UK, the US, and India.

Gopinathan was quoted as saying: “TCS has a long history of innovation working with our clients across Australia. I am delighted to take this partnership to a new level in pursuit of Prime Minister Turnbull’s Science and Innovation Agenda."

TCS has 378,000 employees globally, with 3000 in Australia, and operates across a range of industries such as automotive, steel, energy and consumer goods.

It reported global revenues of US$17.58 billion for the financial year 2016-17.


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Sam Varghese

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A professional journalist with decades of experience, Sam for nine years used DOS and then Windows, which led him to start experimenting with GNU/Linux in 1998. Since then he has written widely about the use of both free and open source software, and the people behind the code. His personal blog is titled Irregular Expression.