Hewlett Packard Enterprise invests big in India

Hewlett Packard Enterprise (HPE) will spend $500m in India over the next five years to expand its operations in the country, including the recruitment of artificial intelligence (AI) and networking professionals.

The tech giant, which currently has about 30,000 staff in India, wants the investment to support its work there as well as the export of its services. It plans to increase its India-based workforce by 20%.

“This strategic investment underscores HPE’s long-term commitment to India and will enable the company to grow its operations, manufacturing and employee base in the country, increase its R&D and services exports, as well as invest in technology initiatives to drive positive change for local Indian communities,” said an HPE statement.

The current Indian government has a vision for a $5tn economy, so is an increasingly attractive market for HPE, whose CEO, Antonio Neri, said: “India is one of the largest and fastest-growing economies in the world, and our investments will further develop the country as a critical market for HPE’s global business, as well as benefit our customers, partners, employees and the citizens of India.”

The increased headcount will see HPE recruit engineers with experience in areas such as artificial intelligence and networking. Through the Aruba business it acquired in 2015, the company will also start manufacturing mobility and internet of things (IoT) technology in India before the end of this year.

Shankar Prasad, Indian government minister for law and justice, communication and electronics and IT, said the investment is evidence of the rising confidence of global investors in India’s electronics manufacturing sector and the success of Digital India.

HPE will extend its Mahadevapura campus in Bangalore to house more than 10,000 extra employees.

Indian cities are becoming increasingly attractive locations for the operations for IT companies. Bangalore already has more office space than Shanghai or Singapore – 150 million ft² and it is adding 15 million ft² per year dedicated to IT and engineering services.

Peter Schumacher, CEO at management consultancy the Value Leadership Group, said the technology and services ecosystem in Bangalore is experiencing a record year of expansion.

“For technology companies like HPE, access to top engineering talent will always be their top priority, but operating costs play an increasingly important role too,” he said. “In the San Francisco Bay area, where HPE is headquartered, office space is at least seven times more expensive than in Bangalore, and the high cost of housing is driving up salary levels.”