EMC Opens Software Center in China, Invests $500M

EMC will open a software development center in Shanghai and invest US$500 million in China over the next five years, the company announced Friday.

The center is part of EMC’s $1.2 billion investment in global research and development, although the company didn’t specify the cost of the Shanghai facility. The software center will employ 100 people by the end of the year, and 500 people by 2008, EMC said.

The storage vendor is hedging its offshoring bets in Asia. On Wednesday it announced a similar investment in India of $500 million by 2010, and said it would double its staff there, to 1,600, over the same period.

While India has been the primary choice for software development offshoring in Asia, a talent shortage and rising costs have driven many companies to look elsewhere. Even Indian companies are now sending contract work to other Asian nations, including China and Vietnam.

-Steven Schwankert, IDG News Service (Beijing Bureau)

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