Announcing HPS new facility at Whitefield near Bangalore on Wednesday, Mr Nayyar said that the company would invest Rs 130 crore to set up a 25-acre HPS Complex -- Shivalaya. A formal ground breaking for the facility was performed by Perot Systems Corporation CEO, Mr Ross Perot (Jr).

The new facility will have a world-class offshore development facility, competency development centre, library, gymnasium, hostel facilities, underground parking and recreation facilities.

Mr Nayyar said the first phase of the facility -- that will house around 2000 software professionals -- would be operational by December 2001 while the second phase would come up later.

Addressing the media, Mr Nayyar said HPS had decided to concentrate on consolidation as the company had achieved sizable growth since last four years. Currently, the company has over 800 personnel in Bangalore and 1000 in Noida and the total number is expected to go up to 3000 by 2001, he said.Mr Nayyar said HPS was currently contemplating an IPO. However, he said the time and the size of the issue were not yet finalised.

He said the company had recently acquired a firm in the Bay area and ``would look at certain amount of organic growth'' in the future. However, he stated that the company had no immediate plans for further acquisitions. Since 1996, HPS has invested over $10 million in the country. The company currently has four facilities in Bangalore and Noida and was in the process of looking at other cities like Chandigarh, Chennai, Hyderabad, and Pune.Mr Nayyar said HCL Technologies would set up a technology institute for IT training either in Bangalore or in Hyderabad.

``The institute will be jointly promoted by Karnataka government and Shiv Nadar family while HPS will benefit from the institute,'' he said. HPS is a 50:50 joint venture between Perot Systems Corporation and HCL Technologies Ltd. HPS achieved a turnover of Rs 230 crore in 1999.