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Infosys to set up subsidiary in Texas

April 08, 2004 10:57 IST
Last Updated: April 08, 2004 16:18 IST


Software major Infosys on Thursday said it would invest $20 million in setting up a US subsidiary, Infosys Consulting Inc, which would foray into high-end consulting business.

Infosys has plans to hire 500 people in three years for the new venture, to be incorporated in Texas.

"This plan will offer us the highest chance of success and lowest risk to business," Infosys CEO and managing director Nandan M Nilekani told reporters in Bangalore.

Infosys, he said, has hired four global experts in consulting business from rival firms to head the business and compete with the top IT consulting firms like EDS, Accenture and Deloitte Consulting.

Infosys Consulting CEO Stephen Pratt said the firm would hire about 75 people in the United States in the first year, adding more in the next two years to bring the workforce to 500.

"We will build the world's most competitive consulting firm by providing on-site consulting and offshore delivery. This is the first company to establish the new generation model," Pratt, who was the CEO of Deloitte Consulting, said.

The thrust of the business, heavily dependent on Infosys development centres for delivery, is to offer lower overall price to customers, taking into account the cost arbitrage India offers.

Nilekani said, "Infosys has created local jobs in the US, United Kingdom, Canada, Australia and China and is hiring more people in local countries" where the firm has development centres.

The setting up of an American subsidiary comes a week ahead of Infosys annual results. The company is likely to announce next week either a stock split or issue of bonus shares to its shareholders.

Nilekani said Infosys had a chance to build a next generation consulting firm marrying the advantages of a good consulting team and a strong back delivery model, "which the existing consulting firms lack, despite having a brand access and domain knowledge."


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