India's top software exporter Tata Consultancy Services on Wednesday said it is looking at setting up more delivery centres in Eastern Europe.
"We are looking at more locations in Eastern Europe and expansion of the existing centre in Hungary," chief financial officer of TCS S Mahalingam said.
Recently TCS opened a new centre in the UK and appointed 1,000 professionals from the Pearl group, which was acquired by the company.
"The centre has a capacity of three thousand," TCS executive vice president Phiroz Vandrevala said.
The company is also looking at expanding its operations in the existing two locations in South America.
"In 2006-07 we will make a provision of upwards of Rs 1,000 crore (Rs 10 billion) on capital expenditure," Mahalingam said.
Europe is one of the high growth markets for TCS. Its revenues from the region grew 50 per cent year-on-year in 2005-06. Apart from Europe, the company is expecting higher growth from Latin America and Asia-pacific.
TCS expects its new subsidiary in China, which has been set up in collaboration with Microsoft and Chinese government entities, to be up and running in next two months.
"The chief executive of the subsidiary has been appointed. TCS will have a majority stake and control of the venture. It will also have an option to buy the stake of other shareholders," he said.
TCS already has a subsidiary in China, which has 400 people. The new subsidiary will start operations with 2,000 people.
Asked whether the existing subsidiary of TCS in China would be merged with new subsidiary, he said it was being decided.
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