Infy to expand where 'resistance is least' hurdles'

Infosys said on Wednesday that it will expand in any city where there is least resistance even as it is apparently struggling to get the land it wants in Bangalore.

Managing director Nandan Nilekani said, "During the present year, we are on target to hire 21,200 employees and we need space to put up the infrastructure. We are yet to get the land we have asked from the Karnataka government and we will expand where there is least resistance." Infosys has a total employee base of close to 50,000 of which 16,000 are in Bangalore.

As on December 31, 2005, Infosys had a little over 9 million square feet of space capable of accommodating 41,666 employees and close to 4 million sq feet under completion capable of accommodating 16,900 employees.

Over the past four years, Infosys's growth has been aggressive but Bangalore's share of growth has been dwindling. Only 2,500 of the 16,500 seats added recently have gone to Bangalore.

"When the capacity is increased to 58,000 seats, about 18,000 could be in Bangalore, said Mohandas Pai, CFO, Infosys

"We are planning significant ramp-ups at the Pune and Chandigarh centres as we already have land there. We want to expand in Bangalore and Mangalore, but there is no land available. Mysore is a place where we are pretty comfortable as of now," he added.

In the recent past, ex-PM Deve Gowda has accused Infosys of land grabbing in Bangalore, which Infosys has totally denied. "The move to expand in other cities is not an impulsive one. We have to plan at least a year in advance as there is a chain of construction, hiring and staffing. The decision has nothing to do with the recent controversy," Pai added.

For 2005-06, Infosys had earmarked a capital expenditure of Rs 1,130 crore of which Rs 850 crore has been spent. Added Pai: "On an average, we spend around Rs 4.5 crore a day and you bet it's not an easy job spending money either."