Bangalore: Software major Infosys today (Apr 7, 2004) said it will invest $ 20 million in setting up a US subsidiary Infosys Consulting Inc, to make a big foray into the high-end consulting business with plans to hire 500 people in three years.

"This plan (foray into consulting with US firm) will offer us the highest chance of success and lowest risk to business," Infosys CEO and Managing Director Nandan M Nilekani said.

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 US in the first year and further ramp it up to reach 500 in three years.

"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 US, UK, Canada, Australia and China and is "hiring more people in local countries" where the firm has development centres.