Indian IT giant Infosys is planning to expand its operations in Israel, the financial website Globes reported today.
“The Times of India” has reported that Infosys CEO Vishal Sikka has personally headhunted Jake Klein from SAP, one of his former executives, and appointed him VP corporate development in Israel. “The Times of India” adds, “tasking him with overseeing start-up investments and acquisitions in Israel.” Klein has been doing a similar job for SAP where he was Senior VP overseeing start-up investments and helping SAP Ventures expand in Israel.
Infosys, India’s second-largest software exporter, has set aside at least a quarter of its $500-million Innovation Fund for investments in countries like India and Israel, “The Times of India” reports. Infosys is traded on the National Stock Exchange of India with a market cap of $35 billion.
The decision to seek corporate acquisitions in Israel follows the $200 million purchase of Israel-based Panaya in February.
Last month, another Indian IT giant, Tech Mahindra, signed a deal to open a research and development center in Israel.
Indian journalist Vijeta Uniyal noted that Infosys’s planned expansion follows a pattern of cooperation between the Israeli and Indian tech sectors that has accelerated since Narendra Modi was elected Prime Minister of India last year.
Indian multinationals have discovered Israel as a destination for technology and innovation, making large investments in Israel’s innovation and start-up ecosystem. India’s Tata Group has made a substantial long-term investment in Tel Aviv University’s innovation fund – connecting academic research to the market. Last month India’s Tech-Mahindra had announced its plan to set up a R&D centre in Israel.
These private sector investments come in the backdrop of improving Israel-India bilateral relations ever since Prime Minister Narendra Modi took office in New Delhi 10 months ago.
When Modi was elected, analysts predicted growing diplomatic and economic ties between Israel and India. The two countries have been building closer defense ties as well as technological ties. India has purchased missile systems from, and a jointly produced a missile system with, Israel.
When Israeli Prime Minister Benjamin Netanyahu met Modi last year in New York, Netanyahu said that “the sky is the limit” for ties between the two nations.
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