Indian outsourcer Infosys Technologies has announced £36.5m plans to set up software development centres in China.
The firm has signed letters of intent with Shanghai Zhangjiang Hi-Tech Park and the administrative commission of Hanghzhou Hi-Tech Development Industry Zone to set up centres in Shanghai and Hangzhou. The project will begin next year and will cost $65m over five years.
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The two centres will accommodate 6,000 engineers, dramatically increasing the company’s presence in China, where it now has just 250 staff.
Last month Infosys posted a 37% increase in quarterly profits, but said its costs had also increased as a result of awarding higher wages to its Indian staff. Analysts say staff costs in India are growing due to a huge increase in demand for experienced Indian outsourcing executives.
James Lin, chief executive and managing director of Infosys Technologies Shanghai, said, “Infosys follows a strategy of setting up world-class software development centres in locations where there is rich local talent as well as the required infrastructure.
“It will also enable us to combine local talent with Infosys' global delivery model to provide our clients with best-in-class services.”
The new centres would undertake projects in software development, IT services and IT-enabled services and would act as one of the company’s training and research centres, he added.