PeopleSoft to triple staff in India

By Alorie Gilbert
Staff Writer, CNET News.com Published: February 17, 2004 12:52 PM PST

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PeopleSoft intends to add 1,000 workers to its staff in Bangalore, India, by the end of the year, accelerating the software maker's plan to tap the country's low-cost labor force.

The Pleasanton, Calif., company, which discussed the Bangalore expansion Tuesday, is among a growing number of high-technology outfits that are increasing the size of development and support staffs in India, China and other "offshore" locations. PeopleSoft, which employs more than 12,000 people worldwide, has about 400 workers in two Bangalore development centers, according to a PeopleSoft spokesman.

"The centers have played a significant role in enabling PeopleSoft to lead the way in lowering cost and improving our customers' total ownership experience," Ram Gupta, PeopleSoft executive vice president of products and technology, said in a statement. "Our accelerated ramp-up plan is a natural progression for us, in direct response to the high-quality, rapid output we are seeing from our centers in India and customer demand for high-quality, offshore implementation services."

PeopleSoft announced the opening of its Bangalore software lab last May. J.D. Edwards, the software maker PeopleSoft acquired last year, also had development centers in Bangalore. The groups focus primarily on software development, service and customer support, the company said.

The centers are operated in partnership with Covansys and Hexaware Technologies, two high-tech services companies that specialize in setting up operations in India.

While information technology companies tout the great cost savings and efficiencies they gain by setting up shop abroad, the trend has become an election year political football. American policy makers have called for studies on the issue and have drafted bills aimed at stemming the tide of white-collar jobs moving overseas. Meanwhile, many American IT workers and labor activists voice alarm at the loss of jobs.