India has long been a place to turn to if you need inexpensive quality programming. Microsoft has done it for years. Now it appears that others are looking to India as well including search engines.
Google recently announced plans to set up an engineering research and development office in India early in the New Year. AOL also announced recently that, much to the chagrin of laid off AOL developers; they are looking for developers in India as well.
In addition, many other large technology companies have stated that they are going to begin or increase development using contractors and companies in India.
Despite Dell pulling out some technical support jobs from India, others such as Microsoft, Aviva, HSBC Bank, Lloyds TSB, Prudential, National Rail Inquiries of UK, Siemens and Bank of America are moving thousands of jobs to India. IBM Global Services India doubled its manpower last year while UK-based Vertex (which services Cable & Wireless services to the UK) also plans to double its capacity in India next year. Infosys, an India based company, will be adding around 7,000 professionals during the current fiscal year, the highest in its history.
The reason for this migration? Indian development tends to cost less than North American development; as much as 80% less. This can make a huge difference to a company’s bottom line.
So, while AOL and Google appear to be the leaders in terms of outsourcing search engine technologies development I don’t believe they will be the last. Microsoft already has a campus in India so it wouldn’t be a stretch to imagine them moving some or all of their search engine/portal development to the India campus, dubbed the MIDC (Microsoft India Development Centre).
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