Google to set up R&D center in B’lore

SAN FRANCISCO: Google Inc., the No. 1 search engine in the United States, said it plans to open its first offshore research and development center in Bangalore, India, early next year.

The Mountain View, California, company -- which is widely expected to do an initial public offering in 2004 -- is the latest in a long line of high-technology companies to set up shop in India, which has a large number of educated workers who are paid hourly wages that are significantly lower than in the United States.

A company spokesman said the move aims to take advantage of India's "considerable engineering and technical talent" and is not a cost-cutting move.

Privately held Google has research and development centers in Mountain View, Santa Monica, California, and New York.

While it dominates the Internet search sector, Yahoo Inc. and Microsoft Corp. are spending millions of dollars to challenge its position.

Reuters