Microsoft Storms India

By | November 15, 2004

Microsoft is making big news in India this week by expanding its Hyderabad campus and signing two lucrative deals in Asia’s fourth largest economy.

Microsoft is planning to expand its Indian headquarters from 800 people to roughly 1,500 people in the next year in a move to both strengthen its local position as well as to take advantage of the local knowledge base. Obviously the lower cost of employment is a factor, but Microsoft CEO Steve Ballmer was quick to note that the hiring of the developers in India would not mean any loss of jobs in the United States.

“There are so many growth opportunities in our business that we can invest both in Hyderabad and, at the same time, continue making many more hires (at) our headquarters.”

Microsoft has also signed deals with two of India’s largest software developers, Infosys and Wipro which will enable them to make extensive use of Microsoft’s newest software in their projects for governments and large corporations around the world.

Both Infosys and Wipro have been borne out of the reduced IT labour cost in the Asian country, allowing major corporations to leverage the experience not only in development but in product marketing, at an extremely low cost.

The Infosys deal will see each company investing nearly $10M to develop a services portfolio for companies worldwide, based entirely on Microsoft technologies.

Later this week, Steve Ballmer will be meeting with the India Prime Minister Manmohan Singh to discuss the furthering of Microsoft’s goals within India, a plan the Indian government is apparently rather excited about.

The Hyderabad headquarters is the largest campus outside of the United States.

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