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Indian outsourcer Infosys expands in Shanghai

John Ribeiro | May 21, 2011
Indian outsourcers are targeting China’s booming IT services market.

Infosys Technologies, India’s second largest outsourcer, continues to expand in China, and plans investment of up to US$150 million in a new campus at the Zizhu Science and Technology Park in Shanghai.

When completed in about three years, the facility will be the largest development center run by Infosys outside India, the company said on Saturday.

Indian outsourcing companies are expanding in China. The country is however likely to be popular as an outsourcing location mainly to service the booming local market, and nearby markets such as Japan, Korea, and South-East Asia, Everest Research Institute said in a report in August.

China has a shortage of experienced project managers with skills to interact with North American and European clients, according to Everest. The vast majority of staff are not employable for offshore services delivery to North America and the U.K., it added.

Infosys said it will use its increased capacity in China to deliver high quality consulting and software services to global markets as well as to clients in China.

Once the new Infosys campus in Shanghai is complete, the company will have over 10,000 staff in the city. The company already employs 3,300 staff in the country.

The company has already invested in development centers in Shanghai Pudong Zhangjiang HiTech Park, Hangzhou Binjiang HiTech Park, and Beijing China Overseas Plaza, besides a sales office in Hong Kong and a global education center in Jiaxing Science city.

Infosys China was incorporated in 2004, and had revenues of over US$78 million in its fiscal year to March 31, 2011. This is still a fraction of the company's total revenue of $6.04 billion in the year.


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