IT major TCS has signed a joint venture with three Chinese companies to form Tata Consultancy Services China, which hopes to begin its operations around September, by which time all the business licences are expected to be in place.

With a 72.2 per cent stake in the JV, TCS will have full management control. However, TCS aspires for value addition through the participation by local companies.

As per the Chinese government''s plans Microsoft will enter the JV at a later stage, which will reduce TCS'' holding. Initial investment by TCS is to the tune of $12.6 million, while Microsoft is expected to bring in another $1.5 million.

TCS'' existing 500-people facility in China will be absorbed by the new company. TCS China will employ 5,000 people over the next four years and bid for non-voice based Chinese outsourcing businesses for MNCs, in addition to other IT contracts.