Infosys will provide the Dutch electronics company with finance and accounting services and process purchase orders under the contract, which will generate business of 250 million dollars over the next seven years, said chief financial officer V. Balakrishnan.

The Bangalore-based company will pay 28 million dollars to acquire the Philips service centres in India, Poland and Thailand under the contract. The three centres have 1,400 employees.

"This will help strengthen our presence in Europe and reinforce our capability in the finance and accounting space," Balakrishnan told AFP.

Infosys and other Indian outsourcing firms are trying to strengthen their European business to reduce their dependence on a US market that provides two-thirds of their revenue.

Infosys' outsourcing business enjoyed 70 percent sales growth to 148 million dollars and an increase in client base of more than one-third in the year ended March.