Biz in China tough, payments come late: Infosys

ExpressIndia ^ | June 6, 2008 | ExpressIndia

[CarrotAndStick]

New York, June 6: Indian IT major 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.

"We are finding it difficult to expand in the Chinese market. The business environment, and the standards and processes are different," Gopalakrishnan said in an interview with the online edition of US business magazine Forbes.

He said that another challenge in doing business in China 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 payments in 30 or 60 days. In China, the norm in 270 days," he told Forbes.com.

Bangalore-based Infosys Technologies, which is listed in India as well as the US, has a fully owned Chinese subsidiary, Infosys China, which is headquartered in Shanghai.

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 development 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 quoted Gopalakrishnan as saying that Infosys has about 15 global clients that it supports out of China.

When asked if the business has grown a lot in China, he said that "growth has been slower in China and outside China.

Both have taken longer than we liked."

[Oldexpat]

It is interesting the an Indian company is having trouble functioning in the currupt business world of China. Slow payments, non contractual delays, and “commissions” to many agents and fixit men make it difficult.
US corporations have made major compromises to adapt to the currupt enviroment.
Infosys is a pretty straight company for India.

[yankeedame]

"...neighbouring China and the time taken to receive payments there is up to nine times of the global average,... 'We are finding it difficult to expand in the Chinese market...the standards and processes are different,' Gopalakrishnan said...another challenge...is 'getting accustomed to how Chinese companies do business with each other and what are the usual expectations' ".

I nominate Mr. Gopalakrishnan as a top contender for the "Understatement of the Year" award.

[martin_fierro]

"We are finding it difficult to expand in the Chinese market. The business environment, and the standards and processes are different,"

Someone page Comrade Obvious.