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Monday, November 15, 2004

Microsoft CEO Ballmer Opens New Software Development Unit In India

Microsoft opened an expanded software development unit in Hyderadabad, India as an outsorcing hub in addition to Microsoft's existing facility in Bangalore . Chief Executive of the US-based software giant Steve Ballmer opened the new unit that can employ 1,600 people at the Microsoft India Development Centre, the first outside of the United States that began operations in 1988 and now has 420 employees.He added that Microsofts expansion in India would not result in a reduction in job opportunities at its US facilities."The nature of our business is such that there is enough potential for growth which allows us to hire both at our headquarters in Redmond, Washington, and here in India," Ballmer said. We covered in our blog sometime back India Inc. Is Growing Twice as Fast as Japan Inc where we noted,The fastest change is occurring with the major software vendors that have moved much of their core product development to India. For example, nearly all of SAP’s BW product development and much of NetWeaver resides in India. Oracle and Peoplesoft have accelerated deployment of Research and Development (R&D) and support resources in India; Oracle has more than 6,400 people now employed in India and plans to have nearly 10,000 by the end of 2005. Some companies, such as Kana, have taken an extreme view and have sent all R&D to India. Venture capitalists require that any startup have a plan and capability to deploy R&D in India. Technology-oriented companies have embraced offshoring to India in an aggressive and big way. We also highlighted that Across every industry spectrum, there is potential for knowledge work to relocate to India as articulated by G.B.Prabhat of Satyam that India Inc's view that foreign foreign nationals are opting to work out of India .Microsoft seems to be taking right steps in this direction, though in a measured way.
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