by CIO Staff

India: Investment Hot Spot

News
Dec 06, 20051 min
IT Leadership

Intel, the world’s largest computer chip manufacturer, announced yesterday that it would invest $1 billion in India over the next five years with $800 million going to expand its R&D operations in Bangalore. Intel also said it would explore manufacturing opportunities in the subcontinent.

Today, the New York Times reports that investment banker J. P. Morgan Chase said it would add 4,500 new employees to its Indian workforce by 2007, doubling the number of people it employs in India. These new hires would in large part be dedicated to setting up operations in Bangalore to support Chase’s structured finance and derivatives business.  (Contrary to J.P. Morgan’s decision to “backsource” workers, which we covered last September in CIO.)

This is in addition to the 4,500 current J. P. Morgan Chase employees in India, mainly based in Mumbai.

All this while Microsoft founder and chairman Bill Gates continues his Indian tour.

It seems that despite the political resentment offshoring has stirred up at home, the cost-savings in India and its large talent pool are too compelling for U.S. companies to resist.

–David Rosenbaum