Unisys sets up India subsidiary

It's creating a $180M technology development center in Bangalore

Unisys Corp. announced today that it is setting up a technology development center in Bangalore, India, that will grow to 2,000 employees over the next five years. The company plans to spend $180 million on the center during this period for employment and related expenses.

Unisys' new Indian center will provide software development and maintenance, business process outsourcing (BPO), and technical help desk services, said Cal Killen, vice president of Unisys Global Services, at a news conference in Bangalore. The Blue Bell, Pa.-based company plans to have about 300 staffers at the center by the end of this year.

Unisys will also continue to outsource software development and BPO work to companies in India, which will add up to 1,000 employees working there over the next five years. These companies currently have about 550 staffers working for Unisys.

"For more than 20 years, our strategy has been to source globally in order to meet client demands," said Killen. "This new Indian operation will add capacity to Unisys' global capabilities. This expansion of global sourcing options supports our commitment to meeting clients' needs while consistently managing costs."

Unisys currently has sales and marketing offices in Mumbai and New Delhi. Unisys had a joint venture in India with the Mumbai-based Tata Group. Called Tata Unisys Ltd, the joint venture manufactured Unisys systems as well as did software development for Unisys. In 1997, Unisys sold its stake in the joint venture to the Tata Group.

Despite protests from U.S. and European workers and politicians against outsourcing, companies continue shipping jobs to India unabated.

Nokia Corp. today announced a Code Division Multiple Access research-and-development facility in Mumbai. The center will focus on providing software support and technical expertise in CDMA technology while leveraging Nokia's existing global CDMA competence to build a team of local talent specializing on the protocol, said the Espoo, Finland-based mobile wireless equipment maker in a statement.

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