New York: IT major Infosys is finding it difficult to expand its presence in neighbouring China with the time taken to receive payments there up to nine times of the global average, 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 $5 million 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.”