Barely a decade ago, Infosys and Bangalore, called India’s Silicon Valley, were synonymous with each other. But in 2012, with SD Shibulal at the helm, the company plans to have more campuses in smaller cities as it is now easier to build operations and keep costs in check by fanning out.

“We clearly see that the tier-I cities are getting saturated and infrastructure is under pressure,” said Shibulal, chief executive officer and managing director, Infosys. “Our further expansion will be more in the tier-II cities. In fact, around 10 million square-feet area is already under construction across various cities.”
Cheaper availability of land, improved infrastructure, support from local governments and lower costs of living make running and operating a centre much easier in smaller cities.  “There are many Indian cities that are fit for us to set up a campus,” said Shibulal.

He also said Infosys is in active talks with various state governments to acquire space. The company recently held talks with the Gujarat government for a centre at Ahmedabad.

A month ago, it acquired around 130 acres of land in Indore. In Kolkata, Infosys is already in talks with the government to set up a campus at Rajarhat.

The company is also expanding its existing small-city-campuses in Chandigarh, Thiruvananthapuram, Mangalore, Mysore and Pune.