Infosys to expand in China

Infosys Technologies announced plans on Thursday to expand its software development operations in China.

The Indian software company will set up development centers in Shanghai and Hangzhou through deals with Shanghai Zhangjiang and the Administrative Commission of the High-Tech Development Industry Zone-Hangzhou, the company said.

The Bangalore-based firm will invest $65 million over five years in these centers and hire 6,000 engineers. It currently has 250 workers in China. Work in the new centers will focus on software development, IT services and IT-enabled services. The facilities will also accommodate training and research, the company said. The projects are slated to start by early next year.

In global information services markets, India and China are increasingly seen as rivals, although India has an edge with its English-speaking technical work force. Leading Indian companies such as Infosys and Tata Consultancy Services are expanding operations in China to capitalize on the growing presence of Western companies--whom they serve already--in the Chinese market.