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More IT firms keep China off screen

Bipin Chandran in New Delhi

Close on the heels of bigwigs Infosys Technologies and Wipro dropping their plans of setting up development centres in China, more software firms are finding that the Oriental nation is not a place for development centres.

Thus, HCL Technologies, the Shiv Nadar-promoted software services company, does not find China an attractive destination.

"We do not have any plans to go to China for a development centre. We will have better scale of operation in India," Nadar said.

The Delhi-based communications company Hughes Software Systems said it will not go to China to set up a development centre, as it thinks the size of its operations does not require it do so.

"Our size of operations does not require us to go to China. Besides, it is a market that we do not understand so that we can undertake certain scale of hiring," Adesh Goyal, vice-president, said.

"If we need a sudden ramp up in India we can do it really fast and we do not understand the regulations and legal nature of the Chinese market," Goyal added.

Another Delhi-based software services company with interests in IT education had initially announced plans for a software development centre in China but has since dropped its plans.

"We had planned a centre in China. But now we are finding the regulations and legal structure too difficult to operate. In addition, we have not been able to find a partner in China, which is important for a smooth operations there," a company spokesperson said.

Infosys had also sighted China's legal structure and regulations as the main reasons for opting out of the China plan.

The Chinese market has become a talking point in the plans of software companies and industry associations such as Nasscom (National Association of Software and Service Companies) and Mait have been on a drive to identify possible opportunities for infotech companies in China.

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