Intel’s Development Center in India Faces Cost Scrutiny

Intel’s development center in India has also come under cost and efficiency scrutiny, as the company tries to cut down spending worldwide by US$1 billion, according to informed sources. The company is reviewing spending worldwide.

Intel currently employs more than 3,000 staff in India, including engineers and more than 100 sales and marketing staff. The company also has staff posted by contractors working at its facilities in the country.

A number of technology companies have set up development centers in India to lower costs and tap India’s large pool of technical staff.

Intel, of Santa Clara, Calif., announced in an earnings call in April that it would cut spending this year by $1 billion, and review its operations to identify underperforming businesses and cost inefficiencies.

Intel has initiated an “efficiency program” in India in line with similar programs in other countries.

“Through this efficiency effort Intel is seeking to improve significantly not just in costs, but in the essentials—what we do and how we do it,” Intel India said Friday in a statement addressing Intel’s worldwide plans.

Intel expects to have fewer employees worldwide than it has now, as a result of attrition, redeployment and changes to its business, according to the statement.

A spokeswoman for Intel India, however, declined to comment on whether there would be staff cuts in India, and said details would be available in July.

-John Ribeiro, IDG News Service (Bangalore Bureau)

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