EDS to double China headcount

Outsourcer EDS is planning to double its headcount in China to 2,000 by the end of next year.

EDS has invested US$50 million in China over the last three years and will have around 1,000 employees there by the end of 2006, spread over its operations in Beijing, Chengdu, Guangzhou, Hong Kong and Shanghai.

Just seven per cent of EDS' global revenue came from Asia last year - with China accounting for less than a fifth of that - and the company is aiming to boost that to more than 10 per cent over the next three to five years.

Joe Eazer, EDS' Asia president and China chairman, told Reuters this week that the company will spend "much more" in the country over the next few years.

He said: "It is huge in terms of revenue opportunities. It is going to be one of the most competitive markets because everyone is investing."

But Eazer also admitted that China's regulatory framework and level of development will pose challenges.

In a separate announcement EDS said it has also completed its US$380 million acquisition of a majority stake in Bangalore-based Indian business process outsourcing (BPO) company Mphasis.

Andy McCue of Silicon.com reported from London.