The vendor's R&D strategy in the country, where it recently scored some 3G contract success, includes plans to invest in local manufacturing, and partnerships with local IT services firms. The company has also pledged to support rural education and IT literacy campaigns in India.
Huawei says it already has 2,000 R&D staff in India, and that this will increase to 3,000 once the new Bangalore facility is up and running.
Why this matters
India is a massive market for major vendors such as Huawei, and is going to become more lucrative as the 3G market develops, new LTE/WiMax networks are rolled out, and new managed services deals are awarded. (See India's 3G Players Ready for Swift Launch.)
As a result, it's important for firms such as Huawei to be cementing their commitment to the local economy so that their roles in the development of the communications market will be regarded as positive.
And Huawei has more reason than many to play the positive public relations card, as its business in India suffered earlier this year following security agency concerns about Chinese technology. Along with fellow Chinese vendor ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), Huawei is still recovering from that knock-back, and it can only boost its standing in the eyes of the Indian authorities with this sort of investment pledge, which will also help reduce its product development and delivery times to carrier customers in India. (See Huawei Addresses Security Fears and India Clears Way for Chinese Imports.)
Huawei and ZTE have had a busy year in India:
- India Telecom 2010: AlcaLu, ZTE Win at BSNL
- NSN, ZTE Bag 3G Deals in India
- Ericsson's India Crown Under Threat
- 3G Heralds Managed Services Shift in India
- MTS India Outsources
- Huawei Bags India 3G Deal