SARS outbreak impedes Infosys' China plans
Friday, May 16 2003 14:32 Hrs (IST)
Bangalore: Software major Infosys Technologies' plan to expand in China may have hit a roadblock due
to the current outbreak of Severe Acute Respiratory Syndrome (SARS) in the region.
"Our international expansion strategy in China may face difficulty resulting from the current outbreak of
SARS," Infosys has disclosed to the US Securities Exchange Commission (SEC) in its recent
filing.
Infosys last month indicated that it faced legal barriers in entering China, but was hopeful that its branch
office in Shanghai would be opened soon.
The company's plan to enter China was instantly approved by former Chinese Premier Zhu Rongji
during his visit to the Infosys campus in January 2002, but the Chinese red tape was blamed for delay in
its entry into the dragon country.
Infosys Chairman and Chief Mentor N R Narayana Murthy early this year criticised the Chinese
bureaucracy and said, "In China the transparency is not very high and it was not easy for companies
which were straightforward."
The Bangalore-based NASDAQ-listed Infosys has been rated internationally as one of most transparent
firms.
Infosys also disclosed to the SEC that it intends to establish a software development centre in
Africa.
"We intend to establish new development facilities, potentially in South East Asia, Africa, Latin America
and Europe," it said.
PTI
|