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HP plans $20 m for captive unit

Vishwanath Kulkarni

BANGALORE, July 3

COMPUTER maker Hewlett Packard plans to invest $20 million this year in its India captive software unit, even as the services division of that unit would be merged with subsidiary Digital GlobalSoft Ltd.

This fresh investment seeks to bolster research and development (R&D) efforts for the parent in HP India Software Organisation (HP ISO), Director, Mr Subrahmanyam Vempati said.

With the merger of HP Services division with Digital, the mandate at HP ISO gets more focussed. "We will be a pure play R&D outfit for HP in this part of the world, working on cutting edge technologies," Mr Subrahmanyam said.

The R&D unit at HP ISO, better known as the Systems Technology and Software Division (STSD) is now chartered with product R&D in Asia and not just in India, he said. The key R&D programme areas at STSD include operating systems, embedded systems, network management, CoolTown - HP's Web centric vision of the future, mobile services among others.

STSD has close to 1,000 engineers at working on product development at Bangalore, spread across eight different centres. It has an equal number of engineers split between partners such as Tata Consultancy Services, Wipro and Digital Globalsoft, who are focussed on maintenance, implementation and support services. "We are growing and have been adding people," Mr Subrahmanyam said.

In a bid to consolidate all its facilities in one location, HP ISO is looking at setting up a campus in Bangalore. "We expect to finalise the location soon," Mr Subrahmanyam said adding that the new campus would take care of the organisation's growth requirements for next seven years.

HP ISO is also in the process of setting up an Advanced Technology Centre in Bangalore to showcase its products and technology, he said.

HP ISO, apart from developing leading edge software products and technology, also plays a strategic role in developing and enhancing many of HP products by partnering with many HP divisions and businesses. HP ISO also acts as a back-end for HP India in supporting its customers with consultancy and technology services, he said.

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