Wipro, one of India's largest software and services companies, has set up a base in Shanghai to offer services to the Chinese operations of its multinational customers.
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The focus of Wipro Shanghai will be on localisation and implementation of packaged software from suppliers such as SAP and Oracle.
It will also concentrate on IT infrastructure services, rather than on core software development, which will continue to be done from India, according to Masaki Nagao, president of Wipro's Japanese subsidiary.
Wipro Shanghai will primarily serve the operations in China of Wipro's global customers, though later it may address the local Chinese market as well, Nagao added. Wipro has so far invested U$200,000 (£110,000) in the Shanghai operation.
Of Wipro's top 25 customers in Japan, 21 have operations in China, some of whom have requested Wipro services for their operations in China, according to Nagao.
Indian software and services companies have made a beeline to China, both to tap the Chinese market and to use it as a base to serve customers in Japan and Korea.
"China is the fastest-growing market for technology and services, especially for the financial services and telecom [markets]," said Kris Gopalakrishnan, chief operating officer of Infosys. "It's natural for us to be there."
Infosys has set up a 200-staff subsidiary in Pudong, China. "At the initial stages we expect it to serve as a base for our global customers in China as well as to service local Chinese customers," Gopalakrishnan said.
John Ribeiro writes for IDG News Service