Infosys to set up IT SEZ in MP

No BPO, but company to open Rs 600-cr software unit in a phased manner

After a long silence, Infosys on Monday said it would set up an information technology-specific special economic zone in Indore. The company ruled out setting up a BPO unit at the location as pronounced by state government earlier, but it said it would open a software unit with an investment of nearly Rs 600 crore in phased manner.

Binod Hampapur, senior vice president and global head (commercial and corporate relations) of Infosys, said the company will start the civil work by this year-end. “We expect to add another 10,000 headcounts within five years, but it would depend on Infosys growth and market conditions,” he told Business Standard. “Our growth rate is 18 per cent. If it goes up, we will finish the project in three years or four years. It may go longer if the growth rate and market conditions are not favourable.” If it comes up, the Indore SEZ will be Infosys’ 15th location. The company would also do client service at Indore. It, however, has no plans to set up a BPO unit.

Earlier, the state government had announced having allocated 100 acres of land each to Tata Consultancy Services and Infosys at Super Corridor, which is 14-km-long in Indore for setting up BPO units. The government has mandated both the companies to locally hire 50 per cent — or 100 per acre employees. “We may recruit 100 per ent local people but we will hire only talented engineers,” clarifies Hampapur. “We want local engineers, since they normally feel comfortable and keep the attrition rate low. In case we do not get enough talented hands, we may urge the government amend the condition.” He notes that state should als know about a paucity of skilled people, and hence that proposal. “But we will abide by what we have committed to government,” he adds.

On coming ‘late’ to Madhya Pradesh, Hampapur says Indore now is well connected, has a rich culture and, above all, has almost all necessary infrastructure the clients of the company want. “It is right time to make investment here,” he adds.

The Bangalore-based company has yet to obtain certain clearances from Central government. It has been allotted a total area of 130 acres at Rs 20 lakh per acre. The government will ask the Indore Development Authority to allot 130 acres of land. Later the state government will compensate the losses.

Infosys had at one point in time evinced interest in Indore IT SEZ, but later skipped that plan. “It was wiser to pump in money in land than acquiring that crystal IT SEZ building,” adds Hampapur.