The Bangalore-based company has applied to the Chinese government to set up a software development center for 200 professionals in Shanghai, and has committed $5 million to its proposed Chinese subsidiary.
Boosted by its entry into the World Trade Organisation in 2001 and its recent regulatory changes, China is considered to be an upcoming destination for services companies looking to set up outsourcing bases, and a potential rival to India’s fast-growing software industry.
Two of Infosys’ Indian rivals, Tata Consultancy Services and Satyam Computer Services Ltd [SAY], have already made the move as they look to use China as a base to service the East Asian market.
Infosys increased its revenue expectations for the 12 months ending March 31, 2004 to between $1.008 billion and $1.015 billion (up as much as 35% on 2003), and upgraded guidance on annual profit to $1.95 earnings per share. Its performance has helped boost its stock price by over 50% in the last two months.
This article was based on material originally published by ComputerWire.
