Pervasive Software , a U.S. vendor of data base software package , this week foretell it close down its software development subsidiary in Bangalore , India , citing complexity of management of the operation , and increasing employee cost and dollar volume .
diligence analysts expect a number of other small software package exploitation or services operations in India of multinationals to either close down down or get transferred to an Amerindic provider .
A number of foreign company have place up surgical procedure in India which do not have the optimum size involve to pull in the savings of doing work offshore in India , enjoin Siddharth Pai , a partner at source consultancy firm , Technology Partners International ( TPI ) in Houston , Texas .
Unless a company is doing study that is highly skilled or extremely secernate in India , it want to have at least a 1000 - person operation in India as the fixed monetary value for such an operation are high , he added .
Companies coif up seaward software ontogeny or service operations in India also misestimate the amount of management bandwidth and effort demand to make it work out to their expectations , harmonize to Pai . There are presently about 385 development and serve subsidiaries of multinational companies in India , and while there are some that are very big , there are many that are too small to be workable , he add .
The move by Pervasive came in the wake of a similar decision by Apple which shut down recently its month - old support shopping mall in Bangalore , which had 30 faculty . “ We have re - assess our plans and have determine to put our design support mall maturation in other countries , ” said Steve Dowling , a spokesman for Apple in Cupertino , Calif. earlier this month .
In a argument this week , Pervasive quoted its president and primary executive police officer John Farr as saying that while the possible cost savings of an offshore development operation can be mathematically compelling , the company found that the complexness of managing such an surgical procedure , and the increase costs of toil , employee overturn , training , and adroitness in a raging market such as Bangalore make it ambitious to ultimately realize those savings . permeating had about 50 faculty in India .
Pervasive denote before this workweek hire plan in its software ontogeny and technological support groups at the company headquarters in Austin , Texas . The company will however continue to outsource to Native American company Aztec Software & Technology Services in Bangalore .
The moves by Apple and Pervasive to opt out of their offshore operations in India do not however excogitate an overall trend . Other foreign companies are expanding at a fast pace in the country . French IT services company Capgemini S.A. said earlier this month that India would be the hub for its seaward delivery of service , while IBM announced US$ 6 billion in new investments in India over the next three eld , mainly to expand its seaward services operation in the land .
