Microsoft to spend $50 million more in India-paper

Microsoft Corporation plans to make fresh investments of $50 million in its Indian operations in the next two to three years, the Business Standard newspaper reported on Thursday.

The paper quoted S Somasegar, vice-president Windows Engineering Service Group as saying "the investment we are making in India is mainly for software product development at our centre in Hyderabad".

Microsoft's employee strength will go up to 300 from the current 85, the paper said.

Microsoft chief Bill Gates is visiting India on Thursday.

Microsoft and Indian software major Infosys Technologies are due to make a joint announcement of an alliance at noon on Thursday.

The paper said the alliance was for product development, consultancy and joint market development in India. "Under the alliance, Microsoft will outsource key software technology work from Infosys," it said.

Infosys shares rose briefly on Wednesday to a high of 8,925 rupees on news that an alliance was in the offing, but came off on profit booking in an overall weak market, to end at 8,687, down 160 rupees from the previous close. They ended just $1- up at $158 - at the NASDAQ on Wednesday.

Microsoft already works with another big software firm Wipro for outsourcing software development work and Wipro has a Microsoft offshore development centre in Hyderabad. The paper quoted Somasegar as saying Microsoft will also expand its alliance with Wipro. Wipro shares ended at 3,269.20 rupees at the Bombay exchange on Wednesday, down 2.25 rupees on the day.

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