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IT Suppliers Increase Investment in India

VMware is the latest company to look east with a sizeable investment plan, and economic developments ensure it won't be the last.

VMware plans to spend $100 million in India over the next two years, in part by doubling its employee roster there. Today, VMware has about 500 employees -- roughly 10 percent -- spread across offices in Bangalore, Pune, Chennai, Delhi, and Mumbai. The addition of more than 500 employees will bring the VMware Indian census to over 1,000. The company also plans to open an 82,000-square-foot development center in Bangalore.

"India has both an excellent technical education infrastructure and outstanding people... India is also one of our fastest growing markets and where we have increasingly important system integrator partners," said VMware CEO Diane Greene, in a prepared statement.

The news follows similar India investment announcements from QLogic, Microsoft, NetApp, and HP, to name just a few. Only China rivals India in the investment by large U.S.-based IT firms.

QLogic announced on March 5 plans to open a QLogic International Development Plan in Pune, India. Also this month, NetApp has vowed to spend $200 million to $300 million over three to five years and bring its Indian employee roster from 750 to over 2,000. Microsoft is midway through a $1.7 billion plan to add 3,000 employees in India, first announced in 2005.

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