Tata Consultancy Services and Japan's Mitsubishi Corp will invest $5 million in a joint venture to set up a delivery center in Japan. The new venture will offer a full service suite of IT, BPO and infrastructure services to Japanese corporations.

TCS expects to raise revenue from Japan to at least half a billion dollars in four-five years, N. Chandrasekaran told reporters on Wednesday. The company's annual revenue from Japan is about $100 million, he said.

TCS will hold 60% stake in this joint venture entity whereas 40% will be held by the Japanese company Mitsubishi Corp. The JV is important for TCS as the company derives only 1% of its revenues from the Japanese markets and 7% from the Asia Pacific region.

This is a good chance for TCS to get an entry into world's third largest economy and provide software services in Japan. This will be positive in the sense that the market share of TCS in Japan will rise as a result of the partnership with Mitsubishi and also the company will also have a presence across all geographies.

Mitsubishi Corporation and TCS have already started collaborating in areas that include establishing an IT support system that uses TCS's knowhow and its global network delivery model for Mitsubishi Corporation's overseas bases as well as implementing new employee training programs for Mitsubishi Corporation's business services division and for IT Frontier Co at its training center in Thiruvananthapuram.