EYE ON DRAGONLAND
The company is currently looking for land in Shanghai to develop a campus on the lines of its Bangalore centre. " The campus in China will be for tapping the Chinese market as well as global companies," the spokesperson said.
India's second largest software services exporter has exceeded its quarterly profit estimates and raised its yearly revenue forecast last week. True to the post-slowdown spirit, the company raised employee salaries just like its top rivals TCS and Wipro.
" We have had four quarters of good volume growth," Gopalakrishnan said while announcing the results. " If you look at the momentum that is there, there is potential for volume growth… We build capacity to take advantage of growth and grow faster." The new China campus is seen as an effort in that direction.
Infosys currently has development centers in Shanghai and Hangzhou. Shanghai centres are located in Shanghai Pudong Software Park and Zhangjiang Hi Tech Park with focus on IT services. The Hangzhou centre specialises in BPO services.
Infosys China, a fully- owned subsidiary of Infosys Technologies with an initial capital of $5 million was started in 2003.
Later, the company invested $18 million. The idea is to build "a world- class delivery hub". IT majors, including Wipro, TCS and Mahindra Satyam also have major operations in China.
Infosys has established a China Education Centre at Jiaxing Science City to promote software talent in research and education institutions in the country. The company signed an agreement the city officials during the visit of President Pratibha Patil in May.
Located between Shanghai and Hangzhou, Jiaxing is set to become a talent hub. Infosys will train 1,000 engineering graduates from universities for entry- level positions, and conduct soft skills and leadership training programs for more than 2,000 employees annually at the centre, a spokesperson said. In addition, the Centre will train the computer science faculty.
Though the company's major revenue sources still remains North America (66 per cent) and Europe (22 per cent) it is trying to expand its base in the rest of the world that now gives roughly a tenth of its revenue.
India accounts for a little over two per cent of the company's revenue.
Though the US remains the major market for Indian IT majors, shake-ups there, such as the increasing visa costs for employees and withdrawing tax sops for companies that offshore work, have increased the relevance of newer markets.
Industry body NASSCOM has pointed out that significant opportunities exist in emerging geographies such as Asia- Pacific.
Courtesy: Mail Today
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