Global Outsourcing: Changing trends
Friday, August 05, 2005
From: cio-today
In a twist on global outsourcing, Indian-based software firm Infosys Technologies is setting up development centers in China. The firm will invest US$65 million over a five-year period and will hire some 6,000 engineers there, a dramatic increase from the 250 employees it has in China already.
The new centers will be located in Shanghai and Hangzhou and will focus on software development and I.T. services as well as training and research. Both centers are slated to have projects started by early 2006.
India and China have come to be seen as competitors for information services, as U.S. and European companies look to those countries for programming talent, customer service and other outsourced work.
But leading Indian companies like Infosys, now eyeing China as a partner, have been expanding into that region to tap into local talent and to cozy up to Western companies that have a presence there. The planned centers should help Infosys garner more outsourcing orders from Japan and Southeast Asian countries, which hitherto have not used many Indian firms for such work.
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