Indian IT services company Infosys Technologies is looking to hire up to 2,000 professionals in China over the next 12 months.

Speaking to Business Line , Mr S Gopalakrishnan, CEO and MD of Infosys, said the company is looking at a new campus in Shanghai as part of its China strategy. “We already are 2,800 people in China and we are scaling that up. We will be adding 1,000-2000 people over the next 12 months. When we do a campus, it is always in the increments of 5,000 (capacity) because it is in terms of a building. But we will have to see how fast we can grow there,” he said.

Terming China as a key element of its global strategy, he said adding that MNC clients were seeking tech support for their China operations. “Most MNCs are present in China today and they need support for their local operations there. China is a huge market, it is a slow market to penetrate but is an important market,” he said.

Responding to a query on the slower-than-anticipated pace of expansion in China by large Indian IT vendors, he said that the initial client acceptance to China had been slow and that even the global downturn had impacted plans.

“There had been concerns about IPR or having to manage another location. Slowly we have been able to convince the clients that by working with Indian IT service providers, some of those concerns can be addressed. Also as their operations in China increased, they saw a need for local support. Rather than setting it up themselves they started working with companies like us.

“It has taken time, longer than anticipated… But now that things are looking up, we are seeing growth in China again,” Mr Gopalakrishnan said.

Meanwhile, Mr Gopalakrishnan declined to confirm or deny reports of a management rejig at the top deck. Infosys is set to see some reshuffle – Mr Gopalakrishnan, it is widely speculated, may pass on the CEO baton to the current COO, Mr S Shibulal, over the course of next few months.

Narayana Murthy's retirement

Moreover, Mr N R Narayana Murthy, co-founder of Infosys, is set to retire from the company in August this year.

“What is certain today is that Mr Murthy is retiring…everything else is for the Board to decide so I can't confirm or clarify these things. Because there is no decision as far as the Board is concerned that has been made public, I can't comment on it.”

Asked about client response to Mr Murthy's retirement, he said that clients are aware of Infosys' depth of management.

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