New York, June 6: Indian IT giant Infosys is finding it difficult to expand the presence in neighbouring China and the time taken to receive payments there is up to nine times of the global average, its CEO Kris Gopalakrishnan has said in an interview with the online edition of US business magazine Forbes.
On asking Gopalkrishna about the growth of Infosys in China, he said, " Growth has been slower in China and outside China. Both have taken longer than we liked. In China, for potential Chinese clients, the brand is not there. It takes more time to develop the market. Outside of China, too, customers' use of our Chinese development center has been slower than we expected. We thought the pickup would've been much faster, but clients saw it differently. They felt it would be one more location we need to audit, one more location to certify. We have about 15 global clients we support out of China."
Moreover, speaking over business environment in china he further said, "We are finding it difficult to expand in the Chinese market. The business environment, and the standards and processes are different. It's a learning process. The second challenge is getting accustomed to how Chinese companies do business with each other and what are the usual expectations. For instance, typically when you work globally, you receive payment in 30 or 60 days. In China, the norm is 270 days,"
Infosys China was started with an initial capital of five million dollar in 2003. According to information available on its website, the company has about 800 consultants providing IT and BPO services to its global and Asia-Pacific clients.
Infosys China has centres in Shanghai, Hangzhou and a representative office in Beijing. Shanghai centres focus on IT services while the centre located in Hangzhou specialises in BPO services. Forbes.com also quoted Gopalakrishnan as saying that Infosys has about 15 global clients that it supports out of China.