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By S. SRINIVASAN, Associated Press Writer
BANGALORE, India - Infosys Technologies Ltd., which has become India's second-largest software maker thanks largely to outsourced work from the West, is investing $20 million to create nearly 500 consulting jobs in the United States.
The company has set up a subsidiary in Fremont, Calif., to provide business consulting to American corporations. The new company, Infosys Consulting, has begun "aggressive hiring in America," Infosys chief executive officer Nandan Nilekani told reporters Thursday.
"As we are looking to expand our global footprint, we are creating local employment in the countries we operate," he said.
In the first year, the new firm will hire 75 experienced consultants, with plans for a total of 500 hires within the next three years.
While the United States has lost thousands of jobs to low-wage countries such as India in a practice known as offshore outsourcing, the investment by Infosys shows outsourcing can also generate new jobs in the United States — though on a smaller scale, Nilekani said.
The company's American employees would advise U.S. corporations on improving their efficiency by embracing outsourcing and moving work to India. Nilekani said Infosys is looking to hire Americans because they would better understand the needs of the clients and industry trends.
Infosys, which employs 23,000 people, offers software development and back-office financial transactions for companies abroad. In the fiscal year ending March 31, it is expected to surpass $1 billion in revenue for the first time.
Infosys Consulting will also open offices in other countries later on, but Nilekani declined to say where.
Indian outsourcing companies have previously set up offices in the United States, but they have been largely restricted to marketing and have created very few jobs.
In another sign of the rise of Indian outsourcing, IBM Corp. said Tuesday it would acquire one of India's biggest call center firms, Daksh eServices, for an undisclosed price.
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