Satyam has 500 employees in China, almost all of them Chinese, at support centers in Shanghai, Beijing, the southern city of Guangzhou and the northeastern city of Dalian.

The abundance of jobs in India means workers job-hop often. China offers the advantages of a huge labor pool, a plus in Satyam's fight to recruit and retain labor, Aggarwal said.

"The labor market in Nanjing is relatively untapped," he said.

Asia-Pacific, Africa and the Middle East contribute around 16 percent of Satyam's global revenue, while Europe contributes about 18 percent and the United States about 65 percent, he said.

Other Indian software companies are expanding in China, too. Infosys Technologies Ltd, India's second-largest software company, plans to open two development centers in China that will employ 6,000 people.

India's top information technology company, Tata Consultancy Services Ltd, has a joint venture agreement with three Chinese partners, with strategic investment from Microsoft Corp, to expand its operations in China.

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