Microsoft India, which currently has an offshore product development center in Hyderabad, the capital of Andhra Pradesh, announced the expansion of its activities further south to Bangalore in Karnataka, to focus on product development and applied research in web search and online ad technologies. “It will initially have 200 employees according to Satya Nadella, senior vice president, R& D, Online Services Division, Microsoft (MS-OSD). “The Bangalore location joins Hyderabad as one of the core hubs of development and research for MS-OSD. The innovations from our Hyderabad team are already having significant impact on our US, UK, Canada, Australia,and India products.
Microsoft India R&D MD Srini Koppolu said that the Hyderabad team had been contributing in terms af adding core algorithm relevance, developing structured data and building page search advertising technology.
Takeaway: Companies who reach a certain degree of R&D maturity at one location in India, can start to branch out to other cities, to secure specific local talent which may prefer to live in a particular location. Expanding too widely too soon can cause serious challenges to most foreign entitites