To expand Indian operations Microsoft pumps in $1.7 billion

To expand Indian operations Microsoft pumps in $1.7 billion

	Published : Fri, 09 Dec 2005 01:35 By : Paula Demarzio Print this Story

India continues to lure technology giants. Microsoft, which already has development centres in India, is planning to add $1.7 billion (£1 billion) more to expand its development centres and add new facilities there.

This announcement was made by Chairman Bill Gates on Wednesday in Indian capital New Delhi. This amount would be invested over a period of four years.

Around half of the earmarked amount will be spent on shoring up its existing research and development centre, its global software delivery unit. In addition, it will reach out to 33 more cities where retail outlets will be opened.

“We have about 4,000 people [in India]. We would be growing that by 3,000 over the next several years,” said Gates.

Microsoft, undoubtedly the largest software maker in the world, is looking to make use of a large pool of skilled workers who are available there. Another advantage is that the average salaries of these talented workers are much less when compared to their counterparts in the Western nations.

According to Gates, Microsoft will also concentrate on spreading low-cost computing in India, where high-costs have become a barrier for using technology among majority of its billion-plus populace.

The behemoth has also launched software in nine local Indian languages. Also on the anvil are plans to add 3,000 more jobs in its development centres in India, of which 30 to 40 per cent will be in the area of product development

Gates will also unveil Microsoft's new programming toolkit in Bangalore, India’s premier technology city, during this visit.

Meanwhile, around 1,600 to 2,000 new jobs will be added in the US Microsoft operations this year. About 80 per cent of them will be based at its headquarters in Redmond, according to its spokesman Lou Gellos.

Gellos also sought to allay the fears of US tech workers when he said that Microsoft has plans to rebuild and expand its facilities at its Redmond campus, where majority of its development would be carried out.