Ariba opens development center in India

Ariba has set up a software development facility in Bangalore, India, which will work on product development as well as technical support and services, the company announced Friday.

This is the company's second development center worldwide, said David McCormick, Ariba's president and director, told reporters in Bangalore. The other center is in California, he said.

Ariba, a vendor of software for online sourcing and procurement, currently employs about 80 people at the Bangalore center, and plans to double the headcount by the end of next year. The center has a capacity to house 300 staffers.

The center's technical team is working on key components of the Ariba Supplier Network and the Ariba Buyer product in the company's Spend Management solutions suite.

Besides the development center, Ariba also has a significant number of customers in India, a figure that rose after the company completed in July its acquisition of FreeMarkets, a sourcing software company in Pittsburgh.

India also is an important location for Ariba's "low cost country sourcing" program, which involves identification and qualification of low-cost suppliers in various countries, according to McCormick.

"Big multinational companies are interested in doing business in India, and being in the business of spend management, we help them work out what they buy and who they buy from," McCormick said.

Services like the low cost country sourcing program are a key differentiator for Ariba, as it enables it to offer complete spend management solutions to its customers, McCormick said. "Customers don't want to partner with three or four people to solve a business problem," he added.

Ariba's Indian operations have the company's largest combined sales, marketing and development organization outside the U.S. Besides the 80 staff at the development center, the company also has about 40 employees working at its sales and marketing office in Gurgaon near Delhi, McCormick said. The company employs approximately 1,000 workers in the U.S.

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