Microsoft Plans Major Expansion in India

Microsoft Corp. plans to nearly double its workforce in India over the next four years, investing $1.7 billion and adding 3,000 jobs in a vote of confidence in one of the world’s fastest-growing markets.

The investment would be among the largest an information technology company has made in the country of 1 billion people, which Microsoft has long viewed as having huge potential in human capital and for sales.

“The growth in employment for Microsoft will be more in India than the United States,” said Bill Gates, the company’s chairman and co-founder.

A substantial part of the money would go to creating a Windows operating system designed specifically for India and available in nine Indian languages. That could help Microsoft fend off challenges from cheaper open-source operating systems led by Linux, which has made deep inroads in India.

Half the money would go to improving Microsoft’s research and development capabilities, including the creation of a new facility in the southern city of Bangalore, India’s technology hub, the company said.

In 2002, Gates announced similar plans for $400 million in investments. On Wednesday, he called the company’s progress since then “fantastic” and said, “That’s part of the reason we are able to make such a strong and increased commitment.”

Gates’ plan was the latest among recent announcements of investment plans in India by U.S. technology firms, including Intel Corp. and Cisco Systems Inc.

Earlier this year, Microsoft opened a research center in the southern city of Hyderabad, its fourth such facility worldwide. The Bangalore center is to be opened next month.

The expansion plans will nearly double Microsoft’s workforce in India by adding 3,000 jobs in the next three years to its existing pool of 4,000, Gates said.