Apple Plans to Open First Technology Development Center in India

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Apple (NASDAQ:AAPL) is planning to open its first technology development center in Hyderabad, India. It was recently reported that it was on track to receiving an approval for its first retail store in the South Asian country.

The iPhone maker is expected to build its technology development center on WaveRock, a 2,500,000 square feet, a new commercial development property operated by Tishman Speyer. WaveRock is located in Hyderabad, and it is being developed as a world-class IT/ITES Special Economic Zone.

Apple could create 4,500 jobs in India

According to ZDNET, the iPhone maker’s technology development center costs around $25 million and the company could create 4,500 jobs in India.  Apple is expected to initially open the center in June and to launch its full operations by the end of 2016.

Apple previously had a technology support center in Bengaluru, but decided to close the facility a decade ago because of poor quality services. Since then, the iPhone maker maintained its core technology development operations in-house and inside the United States. Based on media reports, the company is only outsourcing commoditized application maintenance to vendors.

Jayesh Ranjan, Secretary to IT department in the state of Telangana, India described Apple’s decision as a “positive development” because the tech giant did not look at other cities around the work. He said its “decision to have the facility in Hyderabad is a strong endorsement of the city as a major IT hub in the country.”

Ranjan was unable to confirm as to when Apple would sign a memorandum of understanding (MoU), but it expected to happen by the end of this month or early in March.

GT Venkateshwar Rao, a managing director at Telangana State Technology Services, shared a similar view that having Apple build its facility in the city would boost its image as a technology hub.

According to Rao, “Microsoft’s Windows 10 was developed in Hyderabad, but it has been a global product now. If a company like Apple is deploying its resources in Hyderabad, it will not only create employment, but also gives the city a brand image.”

Microsoft, Google expanding operations in India

The iPhone maker followed the steps of its peers in the industry such as Google and Microsoft (NASDAQ:MSFT), which are planning to expand their operations in India.

Google CEO Sundar Pichai announced the company’s plan to open its biggest campus in South Asia during his visit in India in December. The search engine giant plans to build it in Hyderabad, over the next several years.

On the other hand, Microsoft CEO Satya Nadella said the software giant intends to expand its operations in the country.

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