Infosys Ltd. has become the latest Indian IT services company to set up a joint venture with a local company in Saudi Arabia to tap local customers in the Kingdom.
“The investment will be $312,671 (Rs 21 million) in cash in the equity share capital of the joint venture,” the IT major said in a regulatory filing to the BSE.
The joint venture will be in the ratio of 70:30 and the agreement is subject to the approval of the Saudi Arabian General Investment Authority (SAGIA), Business Standard reported.
Infosys lags behind local rivals such as Wipro and Tata Consultancy Services in engaging with the Kingdom, which is investing in infrastructure and education to adapt to the knowledge economy.
TCS has a strong local business in its all women back office center in Saudi Arabia jointly with Saudi Aramco and GE, where it nominates over 1,000 women doing back office work for the petroleum company. The Kingdom is transforming itself from a largely oil driven economy to a site for technological disruption, and research and development.
Wipro has a presence in Saudi Arabia since 2002, serving customers such as Saudi Aramco and Saudi Telecom with software consultancy and building applications.
In May, Wipro’s local subsidiary, Saudi Aramco and Princess Nora University (PNU) set up Saudi’s first all women business and technology park.Round about 21,000 jobs for Saudi women are expected in the project over a span of 10 years.