IDG News Service

Following the industry trend of cutting costs through international outsourcing, PeopleSoft Inc. plans to open a new development and support center in Bangalore, India.

PeopleSoft plans to invest US$30 million to $40 million in the center, slated to employ 300 by the end of the year, according to a PeopleSoft spokesperson. The Pleasanton, Calif., company is working with services firm Hexaware Technologies Inc., which will establish and operate the center.

PeopleSoft has had a presence in India since 1999, and runs offices in Bangalore, Mumbai and New Delhi. The company said it expects the new Bangalore facility to reduce the time and cost of software implementations and upgrades.

PeopleSoft has been aggressively seeking savings opportunities as it struggles with the financial fallout of ongoing weakness in the software market. Last month, it cut 200 internal administration and support jobs, and closed an office in Santa Clara, California.

The Bangalore facility is expected to open next quarter, and will eventually employ 700 people working for Hexaware under PeopleSoft’s guidance, Hexaware said.