Infosys to set up second outsourcing facility in China

IDG News Service - SHANGHAI -- Indian outsourcing company Infosys Technologies Ltd. moved into its Shanghai office in February. Now the company is running out of space and is scouting locations for a second outsourcing facility in China, a company executive said yesterday.
"We're already looking," K.S. Suryaprakash, head of delivery operations at Infosys Technologies (Shanghai) Co. Ltd., said.
Infosys is building up its operations in China to tap into demand for IT outsourcing from Japanese and South Korean companies as well as from multinational companies that are doing business in China, Suryaprakash said. In the future, the company also hopes to be well positioned to provide outsourcing services to Chinese companies, he said.
"You may lose out to your competition if you don't have a China presence," Suryaprakash said.
Infosys is considering six Chinese cities as possible locations for a second development facility and will make a decision in the coming months on where it will be located, Suryprakash said. Local governments are wooing Infosys with incentives and other offers in hopes of being selected, he said.
"It's a good feeling," Suryaprakash said.
Infosys will decide on a location based on several factors, including government incentives and the ability to establish a close relationship with local universities, Suryaprakash said. He didn't specify which six cities are under consideration.
Infosys' Shanghai office will reach its capacity of 200 people in January, even though the company has a staff of 50 in Shanghai and doesn't expect to employ 200 here until next March. However, the Shanghai office must also accommodate workers from India who are assigned to China on short-term projects, Suryaprakash said.