Infosys sets up US subsidiary

Infosys Technologies is spending $20m on setting up a business consulting subsidiary in the US, which will be managed by four...

Infosys Technologies is spending $20m on setting up a business consulting subsidiary in the US, which will be managed by four former senior executives of global consulting firms.

The wholly owned subsidiary, Infosys Consulting, will enable Infosys Technologies to deliver a range of services to its clients, from consulting to technology services and business process outsourcing, according to Nandan Nilekani, chief executive officer of Infosys Technologies in Bangalore.

Infosys Consulting is being led by chief executive officer Stephen Pratt, who until recently was the global leader of the customer relationship management practice at Deloitte Consulting, the business and IT consulting division of accounting giant Deloitte Touche Tohmatsu. 

The new company will hire 75 consultants in the US in the first year. "Because of the restructuring in the consulting industry in the US, a lot of staff are willing to move over," said Pratt. "We plan to hire from the top 10% performers from the leading consulting firms."

Besides Pratt, Infosys Consulting has as its managing directors: Romil Bahl, formerly vice president of consulting services at Electronic Data Systems; Raj Joshi, previously CEO of Deloitte Consulting Offshore Technology Group; and Paul Cole, formerly head of the global operations of Cap Gemini Ernst & Young's CRM practice.

By setting up Infosys Consulting, Infosys Technologies, which is India's second-largest software services company, is aiming to counter competition from consulting and technology services companies such as Accenture, EDS and IBM Global Services,  which have set up services delivery operations in India to take advantage of the country's low-cost technical manpower.

"For now, we have a more efficient offshore delivery model as we have been delivering services from India for over 20 years," Nilekani said. "By investing in the markets we operate in and hiring locals, we want to show our commitment to these markets."

John Ribeiro writes for IDG News Service

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