Infosys Technologies announced plans on Wednesday to grow its loss-making subsidiaries, Infosys China and Infosys Consulting.
Senior officials said that Infosys China will be staffed up to 2,000 people over a 18 to 24 month period from 125 now.
"We aim to be a long term player in China and have already acquired 10 clients," they said.
The China facility with revenues of Rs 2.73 crore (Rs 27.3 million) in the third quarter (Q3) posted a Rs 3.57 crore (Rs 35.7 million) loss. The company said it will invest $5 million in Infosys China.
It also plans to grow Infosys Consulting to 500 people in the next three years from 39 now. The consulting arm acquired 15 clients in Q3, up from three in the previous quarter.
The company said the consulting arm billing rate is $205 an hour compared with $65 levels charged by average software firms. By this fiscal end, the company targets to have a 75-member team.
Infosys said clients have reacted favourably to the integrated model (consulting plus delivery) and are looking at it to drive large operational changes.
The consultancy arm made a loss of Rs 8.38 crore (Rs 83.8 million) in Q3 on revenues of Rs 7.54 crore (Rs 75.4 million). The company has already invested $10 million and has earmarked another $10 million capital expenditure plan, as and when the need comes up.
Besides these, Infosys' BPO subsidiary Progeon earned profits of Rs 12 crore (Rs 120 million) on a turnover of Rs 53 crore (Rs 530 million) and Infosys Australia earned profits of Rs 1.2 crore (Rs 12 million) on a topline of Rs 7.54 crore (Rs 75.4 million).