The Hindu Business Line : Infosys plans subsidiary in Mexico

Bangalore April 14 Infosys plans to set up a software development subsidiary in Mexico with an initial investment of $2 million to serve its US customers.

The Mexican subsidiary, capable of supporting multiple languages, would be operational in the July-September quarter, said Mr S.D. Shibulal, head of worldwide sales and delivery at Infosys.

Infosys plans to start the near-shore subsidiary to US with a seating capacity of 300.

The Mexican subsidiary would be the fifth outfit for Infosys, others being Infosys BPO, Infosys Consulting, Infosys Australia and Infosys China. "The Mexican subsidiary will be in the same time zone as that of the US," Mr Shibulal said, adding that the resource pool would serve the company's US clients.

BPO performance

Infosys BPO posted a net profit of Rs 152 crore on revenues of Rs 662 crore with margins of 23 per cent. For FY08, Infosys BPO is eyeing revenues of Rs 935 crore. In March quarter, the company acquired 2,11,909 shares of Infosys BPO and entered into a forward agreement to acquire 3,60,417 shares of Infosys BPO by February next year from various employees of Infosys BPO.

It also paid Rs 58 crore during the quarter to acquire stock options and issued 1,51,933 options of Infosys as a swap to the existing Infosys BPO options held by various employees. Infosys Australia, which has been growing at 30-40 per cent, clocked a profit of Rs 70 crore on revenues of Rs 446 crore, with a margin of 16 per cent. However, Infosys Consulting and the subsidiary in China continued to post losses.

Infosys Consulting, which posted a loss of $25 million (Rs 110 crore on revenues of Rs 213 crore) in FY07 is expected to cut down its losses to around $4 million in FY08.

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Infosys plans subsidiary in Mexico