The Telegraph
Since 1st March, 1999
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Infosys to grow outside home

Bangalore, Jan. 11: Crumbling infrastructure and the state government’s perceived indifference to developing Brand Bangalore have led homegrown software giant Infosys to look elsewhere for growth.

Infosys already has presence outside Karnataka ' in the east, for instance, it has a campus in Bhubaneswar ' but today’s indication by the company to look elsewhere for expansion is being seen in the context of the public spat between its chairman N.R. Narayana Murthy and H.D. Deve Gowda, the former Prime Minister whose party is a partner in the Congress-led coalition government here.

Infosys chief executive Nandan Nilekani said: “We will go where there is least resistance.”

The Bengal government has rolled out the carpet and could benefit from the company’s decision. “We will be meeting Bengal government representatives in this quarter. An exploratory visit is long overdue. It will happen soon,” said chief operating officer S. Gopalakrishnan.

The reason being cited for looking out is non-availability of land. The software company announced that in 2006-07 Infosys would recruit 16,000 people, but only 2,500 of them would work out of campuses in Bangalore.

“In the last four-five years, we have reduced people working from Bangalore. Its share of new recruitment is also coming down in the last few years. We have certain constraints like land availability,” Nilekani and chief financial officer Mohandas V. Pai said, unveiling the third quarter results.

When Murthy recently suggested steps the government could take to improve infrastructure, Gowda reacted by publicly questioning what companies like Infosys had done for the state. It led to Murthy resigning as chairman of Bangalore International Airport Ltd.

Pai dismissed any links between the decision and the controversy. “It takes a lot of planning to move out and cannot be done in a few months,” he said.

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