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By bringing the two together, VSNL can provide interesting offerings to its clients. The strategy resides on the belief that that since network and IT applications are closely linked,
people would buy network to connect and implement certain IT applications and vice versa. People buy connectivity usually because they need some IT application network. It may be in enterprise resource planning (ERP), an e-mail service, or in supply chain management. VSNL can provide both by working with TCS.

VSNL-TCS combine will make an offering to the company to completely take on its messaging service requirements. To begin with, VSNL can service categories like Managed Network Services, Hosted services embedded in the network, managed hosted services independent of Network and Customized Solutions. There are other global telecom players like BT and Equont (France Telecom) that provide this service, plus IT firms that lease the network and offer integrated services.

As Tatas have an in-house IT company and the network, they can leverage this opportunity better. Other IT companies will need to partner bandwidth providers, which would involve aspects like revenue sharing and a deep understanding of the way the other company works.

The VSNL-TCS combine has two advantages on the cost front:

1- VSNL has acquired its global networks at throw away prices.
2- TCS' low-cost software development advantage will make a big difference as software costs generally account for a substantial portion of the total cost.