Infosys Bullish On China

Beijing | Updated: May 28 2004, 05:30am hrs
Indias information technology (IT) giant Infosys, armed with a fully-owned subsidiary in China, is bullish on the booming Chinese IT market and would use its upcoming software development centre to tap domestic as well as overseas markets, a top company executive said.

We have just begun our operations in China and are confident about this market, CEO and managing director of Infosys Nandan M Nilekani told PTI in a telephonic interview.

Mr Nilekani, currently in Shanghai to attend the Global Conference On Scaling Up Poverty Reduction organised by the World Bank and the Chinese government, said Infosys would develop its subsidiary in China as a regional hub for the companys global operations.

In October 2003, Infosys established a wholly-owned subsidiary in China named Infosys Technologies (Shanghai) Co Ltd.

The subsidiary will be capitalised at $5 million. As of march 31, 2004, the company had invested $1 million in the China subsidiary.

This investment would enable the company to tap the large Chinese domestic market and also to deliver services for markets in Asia pacific. It will also serve as a hub for software services in the Asia pacific region, he said.

Mr Nilekani said Infosys is setting up an advanced software development centre in Pudong software park in Shanghai, Chinas largest city and industrial hub.

Currently, the company employs 20 people and this figure is expected to rise to 200, Mr Nilekani said.

He further said that Infosys views its China operations seriously and would like to concentrate on Chinas huge domestic market as well as target the Asia-pacific regional market.

For us the Asia-pacific region is very important, he said while noting that the acquisition of expert information systems, an Australian company for $23 million last year would boost Infosys operations in the region.

Meanwhile, speaking at the conference in Shanghai on Wednesday, Mr Nilekani said the corporate sector can proactively contribute to reducing poverty but it must win the hearts and minds of the poor through initiatives that establish moral and ethical legitimacy. Traditionally, the poor do not trust corporations, he said while speaking on the Role Of The Corporate Private Sector In Scaling Up Poverty Reduction.