Of all the arguments which originally persuaded Tata Consultancy Services (TCS) to establish its Pan-European head office in Amsterdam, in retrospect it was the presence of some of its multinational customers that proved the most important factor for India's largest IT services provider.
From his office in the new business centre in the south of the city, Girish Ramachandran has a view on the corporate buildings of multinationals such as ING, Philips and Fortis. A considerable number of his 250 employees have been posted at one of these clients or another in order to advise on developing and implementing complex automation projects, such as setting up web-enabled banking systems.
"It is strategically important for us to be based in their immediate vicinity," explains TCS's Director Europe. "From being an applications developer, we've developed in recent years into an IT services company with a full service concept. So the largest part of our turnover comes from advising our clients on how to maximise the efficiency of their business processes, and developing and implementing solutions to enable that. For this reason, our clients need us to be able to offer them direct support, and to be familiar with their markets and working environments."
"This is why we chose Amsterdam. Not only are most of the big European banks and telecom companies here, but it's a good operating basis for us for the continental European market."
Following the earlier opening of a representative office near the German border, in 1994 the Dutch capital was chosen for a base from which to coordinate and consolidate all continental European and North African activities. "Because of the traditional links between India and the United Kingdom, the whole European operation was initially headed from London," says Ramachandran. "But we have come to see this as a handicap, because continental Europe has a different culture of enterprise and a different economic dynamic than the Anglo-Saxon part. As a neutral area, Amsterdam was in that respect a logical location choice for us."
But other considerations also played a role, such as Amsterdam's pleasantly cosmopolitan business climate. "This is an internationally oriented environment, which is reinforced by the presence of Schiphol Airport," adds Ramachandran. "Several flights leave for India every day, and you can easily reach any European destination from here. Then all the big service providers have an office here, so in that respect you can rely on a great knowledge and business relation network."
"The Netherlands has an attractive regime for corporate financing, and in this way we can get the most out of that for example advanced agreements are possible. Moreover, our expats can benefit from the regulation which guarantees that 30% of their Dutch income is tax-free."
"As a Tata company, we regard social responsibility as a priority," he says. "We feel strongly related to the community in which we are active, and want to work in surroundings that also inspire us in that respect. That is absolutely the case with Amsterdam."
"Moreover, our expats and their families really enjoy their stay in the city. In Indian terms, this is still an affordable place, and there are all kinds of activities organised here for the Indian community (such as the Cricket Tournament)."
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Photo: Philippe Vogelenzang