CHENNAI, November 4: In a major expansion of its software operations, the Rs 900-crore Wipro Infotech group plans to invest over Rs 600 crore in setting up software development centres (SDCs) in Chennai, Bangalore and Hyderabad. Wipro Infotech, a division of Wipro Ltd, is the country's largest information technology (IT) outfit and the second largest software exporter.

Recognising the increasing potential for software development offered by Chennai, Wipro Infotech's software arm -- Wipro Systems has decided to move into the city. It will kick off operations in June, 1998, when its first SDC in the city is expected to be commissioned. This 32,000 sq ft facility at Guindy is being set up at an investment of Rs 15 crore.

This is to be followed by an investment of Rs 150 crore in a SDC covering an area of 10-15 acre at Kelambakkam, Chennai. The land for the project is in the process of being acquired. The SDC will initially have a built-up space of 1.5 lakh sq ft.

This will later be expanded to 5 lakh sq ft, making it Wipro System's single largest software facility.

"The investment in Chennai will be made over a period of five to ten years. But we will hasten the process depending on the industry growth," a highly placed company official said.

For its Bangalore SDC, Wipro Systems has already been allotted 3 lakh sq ft of land at the electronics city complex. This facility will initially entail an investment of Rs 175 crore in the next two years and going up to Rs 350 crore in the next five years. Bangalore is presently the hub of Wipro Systems' software development activities. It already has 9 centres with a total space of about three lakh sq ft in the Garden City.

In Hyderabad, Wipro Systems plans to set up a two lakh sq ft SDC. This will involve an investment of about Rs 100 crore over the next two years.

Wipro Systems already has a Japanese information processing facility in Hyderabad. This centre had contributed significantly to Wipro's recent success in Japan. Wipro's clients in Japan include Casio, Daiwa, Mitsubishi, NEC, Sony and Toshiba.

"The group has made a conscious decision to opt for owned premises instead of going in for leased offices for development centres," the source said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.