Infosys increases its hold in China, opens Shanghai campus

Infosys Technologies, India’s second largest outsourcer, continued its expansion in China by setting up a new campus at the Zizhu Science and Technology Park in Shanghai and planned investment up to $150 million.

The construction of the facility will be completed in about three years and will be the largest development center steered by Infosys outside India, the Bangalore-based company said.

“I would like to thank the Shanghai Municipal Government and the Chinese Government for their support in starting this project. As the second largest economy in the world, China will lead the world in economic growth in the future and we see exciting times ahead. This large investment is a testimony to Infosys’ commitment to China. As a global company with a presence in over 75 countries, we will use our enhanced capacity here to deliver high quality consulting and software services to the global markets as well as to our clients in China,” said N. R. Narayana Murthy, Chief Mentor and Chairman of the Board.

Everest Research Institute, an independent research and analysis organization, said in a report that Indian outsourcing companies are escalating in China. The country is likely to be popular as an outsourcing location mainly to serve the booming local market.

China has a scarcity of experienced project managers with skills to communicate with North American and European clients. The vast majority of staff is not employable for offshore services to North America and the U.K., the research organization added.

“We have been in China for the past 7 years and have created a high quality capability to address the global and local markets. We have invested heavily in technology, training and people to derive a strategic advantage in our capabilities. With this large investment and enhanced capability we will aim to lead service capability out of China to the global and local markets for business transformation and operations. When this campus is completed we expect to have over 10,000 employees in Shanghai alone,” said Rangarajan Vellamore, CEO, Infosys Technologies (China) Co., Limited, in the company website.

The new Infosys campus in Shanghai will have over 10,000 staff. The company has already employed more than 3,000 staff in the country.

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