Easier to access Japanese, Korean markets from there
New Delhi, May 31
Infosys Technologies on Wednesday outlined an aggressive expansion strategy for China saying it expects to increase the headcount to 5,000 professionals in the next five years, from the existing 500 professionals.
"We currently have a centre in Shanghai. Our headcount is likely to increase from the current 500 to 1,000 by the end of the year and we expect to reach an employee strength 5,000 professionals in China in the next five years," Mr S. Gopalakrishnan, Chief Operating Office, Co-Founder and member of the board, Infosys Technologies, said on the sidelines of a conference here.
Commenting on the opportunities presented by the Chinese market, he said, "It is a significant market and the Chinese economy is growing at a rapid pace. Also, multinational corporations who are looking at entering China, need localisation support. Another opportunity for Infosys is the fact that Japanese and Korean markets are easier to work with from China as they are culturally similar," he said.
The IT major, which currently has nine development centres, is planning new facilities in Mysore, Mangalore, Thiruvananthapuram , Chandigarh and Pune. Of these, the company has applied for SEZs in Mysore and Thiruvananthapuram, he said.
Infosys would invest $400 million as capital expenditure for the current year including the investments in SEZs although Mr Gopalakrishnan did not quantify the investments earmarked for SEZ projects.
Infosys said it would consider acquisitions of companies in the $50-100 million revenue range, with a view to filling gaps in service offerings and in geographies. "
`Rupee swings, cause of concern'
Infosys Technologies has said it is concerned over the fluctuations of the rupee.
"Rupee volatility is a cause of concern because the ability to manage comes down and since one does not know where it is going to go, you cannot have any strategy. A stronger rupee benefits the country while a weak rupee benefits the IT industry because it is export-driven," Mr Gopalakrishnan said.
He, however, declined to comment specifically on the impact of the volatility on the company's revenues.