IT services firm Cognizant is spending $500m on infrastructure in India to accommodate a possible extra 55,000 workers to expand its low-cost delivery model.
The announcement follows 2010 annual results boasting a 40% increase in sales at $4.59bn compared to 2009.
The US company already has the majority of its staff in India. Cognizant is usually classified as an Indian offshore supplier with the likes of TCS, Infosys and Wipro.
Managing director UK and Ireland, Sanjiv Gossain, told Computer Weekly in August: "We are a combination of the 'can do' approach in the US and we have the engineering and process expertise of India." He said Cognizant had about 85,000 global staff with 50,000 in India.
Cognizant has 104,000 staff in India and the proportion of its Indian workforce will get bigger as a result of the Indian infrastructure investment. The company will spend $500m by the end of 2014 expanding its campuses in India by 8 million square feet. This could accommodate up to 55,000 more workers.
"This current real estate expansion program is part of our ongoing strategy of investing in our people, processes, systems and infrastructure to support our long-term growth," said Gordon Coburn, chief financial and operating officer of Cognizant. "We will continue to evaluate opportunities for further construction expansion over the coming years."
Cognizant is confident of the year ahead. Francisco D'Souza, CEO of Cognizant, said: "As our clients continue to recover from the recent economic turmoil, it's clear that our industry stands at yet another inflection point. Clients increasingly turn to us as they look to outsource a broader range of services and simultaneously address the secular and technological shifts impacting their industries. We believe that these trends, and our resilience in meeting them, should provide strong support for growth as we enter 2011."
Gossain said last year that in the UK, where its business is growing, Cognizant made 45% of its revenues in financial services, 18% in pharmaceuticals with the remaining 37% split between retail, manufacturing, telecoms and media.