Microsoft backing India with $1bn investment
Microsoft is planning to expand its interests in the fast growing economy of India with a more than $1bn investment spread over several years.
The attractions of India as a software hub are well known: low costs, an educated middle class, good telecommunications links, and an economy forecast to grow 7-7.5 percent in the fiscal year to March.
The Economic Times of India comments: “Microsoft relies heavily on India’s booming $17.2 billion software services industry to source quality skills at costs far below average Western salaries.”
Microsoft’s investment plans follow chip-maker Intel Corp.’s announcement on Monday to pour $1.1 billion in the medium term in its Indian operations, including setting up a venture fund to take stakes in local start-ups.
In October, Cisco Systems Inc. said it planned to invest $1.1 billion in India over the next three years and triple its staff in the country.
Earlier this week, U.S. banking group, J.P. Morgan Chase & Co said it hoped to hire 4,500 graduates in India over the next two years.
“Knowledge workers” in the West should be prepared for some hefty competition.
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