The Hindu Business Line : Pervasive Software to log out of Bangalore

Unable to manage complexity of operations, the increasing wage costs and attrition, Pervasive Software Inc — a provider of data infrastructure software — has decided to shut down its Bangalore-based subsidiary and move the work back to US.

Pervasive Software had a product development team of some 30-40 people in Bangalore and has been operating since January 2005. "We are consolidating technical operations for our integration product line in Austin and closing our Bangalore-based subsidiary this month, while still maintaining an India presence through our long-time development partner, Aztec Software," said Mr John Farr, Pervasive's President and CEO, in a press release.

Increasing Costs

"The potential cost savings of an off-shore development operation can be mathematically compelling; however, we have found that the complexity of managing such an operation and the increasing costs of labour, employee turnover, training, and facilities in a hot market such as Bangalore make it challenging to ultimately realise those savings."

"We value the unique blend of technical sophistication and innovative spirit here in Austin and believe the technical talent we require resides here locally," Mr Farr said in the release.

The company plans to hire as many as 20 technical employees in Austin over the next several months. The consolidation in Austin with respect to software development, quality engineering and technical support for the full integration product suite is driving much of the local employee growth.

Increasing wages is becoming a cause of concern for IT firms operating in Bangalore. It may be recalled that Apple recently decided to shut down its month-old support centre in Bangalore.