Infosys picks Indianapolis International Airport site for 3,000-job hub

Infosys has reached a deal to build a technology hub at the former Indianapolis International Airport terminal site, according to sources familiar with the plan.

The development will include more than 120 acres and is expected to result in 3,000 new jobs — 1,000 more than previously announced.

The Indianapolis Airport Authority, the city and the Indiana Economic Development Corp. reached terms on an agreement with the India-based technology company on Monday. 

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The exact terms of Infosys' latest deal have not yet been announced, but city and state development incentives are expected to be part of the arrangement. Infosys executives did not immediately respond to a request for comment.

The agreement comes as Vice President Mike Pence abandoned plans to speak at a political group's event to tout the Trump administration's tax plan. Instead, he will appear Thursday at Infosys' temporary Indianapolis offices for an afternoon announcement, according to a White House official.

The press conference, which also will include Gov. Eric Holcomb and Mayor Joe Hogsett, marks Infosys' fourth public event in Indianapolis since the beginning of last year. Infosys in March hosted a ribbon-cutting event to celebrate the opening of its 35,000-square-foot offices at the OneAmerica Tower in Downtown Indianapolis. Infosys officials said they were still searching for a larger space that could accommodate thousands of workers.

"Our vision is to make this innovation center the technology Taj Mahal of Indiana," Infosys Chief Financial Officer M.D. Ranganath said at the time.

Infosys last year expressed interest in moving to the former General Motors stamping plant site, which also is considered a possible location for Amazon's new headquarters. Infosys has since settled on the former airport terminal, which closed in 2008 and was demolished a few years later. The west-side parcel has long been considered one of the ripest sites for redevelopment outside Downtown Indianapolis.

Although Infosys opened its temporary space Downtown, which also has attracted other technology companies including Salesforce, a site near the airport has unique advantages.

"A company that's going to create that many jobs, they obviously need a campus where they can spread out," said Tim Cook, the CEO for KSM Location Advisors, a firm that works with companies on site selection. Cook was not involved in the Infosys deal.

The site will be especially convenient for executives as Infosys expands its footprint.

"With most of our tech clients, having access to other major markets within the U.S. typically makes a lot of sense," Cook said. "I think the ability to get in and out of Indianapolis as they continue to grow throughout the country, that is really important."

The 130-acre former terminal site has been available since March 2016 when the airport authority pulled out of a deal with a first-time developer called Athlete’s Business Network. The group wanted to build a $500 million sports medical complex, but showed little wherewithal to complete such a project. That proposal included a 20,000-seat stadium.

Las Vegas casino operator Full House Resorts also had proposed building a $650 million casino-anchored mixed-use project at the terminal site, but that project was dismissed largely because the plan would have required state approval.

Infosys' latest deal is poised to expand the scope of the largest incentive package in state history. The Indiana Economic Development Corp. had already agreed to provide up to $31 million in conditional tax credits and training grants to the company, a number that is sure to grow if Infosys meets its new hiring target.

Infosys' presence in Indianapolis is part of a strategic shift for the company, which is pivoting away from hiring Indian engineers on H-1B visas and outsourcing their labor to U.S companies. Indianapolis is the first of four technology hubs Infosys has planned for the U.S., including one that has been announced for Raleigh, N.C.

As of March, Infosys had 150 employees in Indianapolis. The company is expected to outgrow its offices in the OneAmerica Tower as hiring ramps up.

Infosys' accelerated hiring pace apparently attracted the attention of Pence. The former Indiana governor had been scheduled to attend a tax policy event in Carmel held by America First Policies, a nonprofit that promotes Trump's agenda. The group has held similar events across the country and is scheduled to do one in Wisconsin Wednesday.

But the group announced Tuesday the Indiana event has been postponed until May 18 so Pence can attend an announcement at Infosys.

Call IndyStar reporter James Briggs at (317) 444-6307. Follow him on Twitter: @JamesEBriggs.