Shanghai: After establishing a state-of-the-art software development centre in Shanghai, one of India's top Information Technology giants Satyam Computer Services Ltd plans to expand its operations into smaller Chinese cities to meet the growing outsourcing requirements.

"We are now seriously considering further expanding our China operations by opening software development centres in smaller Chinese cities to cater to the company's outsourcing business," Regional Manager of Satyam Computer Services (Shanghai) Ltd, Raghvendra Tripathi said.

Tripathi said Satyam, a pioneer in offshore software development concept, is looking at smaller Chinese cities like Dalian in the Northeast and Chengdu in Southwest to conduct its outsourcing businesses.

While establishing new software labs in smaller cities would be cost-effective, local Governments are also providing incentives to foreign hi-tech companies to set up operations in cities like Dalian and Chengdu.

Satyam, which opened its over 10,000 sq feet Shanghai Software Development Centre in 2002, is a wholly-owned foreign enterprise (WOFE) and has invested over $ 1 million in China.

PTI