IT cos scale the Great Wall, again
While Wipro is planning its third centre in China, TCS and Infosys plan to add more than 5k staff each there.
By Shelley Singh, TNN |
| Great going |
NEW DELHI: After building a sizeable presence in India, IT majors are set to climb up the Great Wall of China. Wipro Technologies has firmed up plans to set up its third China development centre. It already has 100 software developers in centres in Beijing and Shanghai working for North Korean and Japanese clients. The third centre, to go live soon, will recruit 400 people to cater to the US and European MNCs based in China.
TCS has 500 people and plans to ramp up to 5,000 in the next five years. Infosys Technologies plans to add 6,000 programmers in Infosys China over the next few years, up from 525.
Wipro declined to confirm expansion or new investment plans in China, citing silent period requirements prior to Q2 results. Infosys Technologies has invested $5m so far in Infosys China and in FY06 it serviced 32 clients, generating revenue of Rs 27 crore. Infosys’ new centres will be located at Shanghai and Hangzhou with a capacity to accommodate 6,000 engineers. Infosys will invest about $65m in China over the next five years.
Says an Infosys Technologies spokesperson, “At present, the potential for IT companies in China lies in telecom, financial services and manufacturing sectors. We expect this to increase in the coming years.” TCS has a 500 people presence in China directly and is also part of a consortium comprising Microsoft and the Chinese government. The consortium started work from September 1. TCS is the majority shareholder in the venture which seeks to provide IT outsourcing services and solutions to all major global markets, particularly the US, Europe, and the Asia Pacific region, including China’s domestic market.
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TCS follows a three-pronged strategy to expand its business in China, which it sees as a market with huge local demand and phenomenal infrastructure. Through this strategy, TCS services existing MNC clients which have expanded in China and need support. Secondly, it works towards making China the sourcing-base for servicing neighbouring markets such as Japan, South Korea and Taiwan. And finally, the venture helps TCS tap the huge domestic market which has demand for services and solutions.Download
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