NEW DELHI, India -- Hot on the heels of Diebold's announcement that it was acquiring the remaining 50 percent stake from its Indian joint venture partner HMA Data Systems Pvt Ltd., the manufacturer apparently has plans to establish a research and development (R&D) base in India by mid-2004.
(See related story Diebold acquires remaining stake in India joint venture)
According to a report in the Financial Express, Diebold intends to set up an R&D development team of 300 to 500 software engineers in India.
"Our idea is to move at least 20 percent of the existing R&D and software work to India. India will also be a base for further expansion we are planning in the software solutions front," Diebold India managing director Gavin Cushman told Financial Express.
Cushman said the engineers will work on developing smart card applications, ATM applications and Web-enabled services.
Diebold will invest close to $5 million to set up the R&D base, according to Gregory Geswein, its chief financial officer.
The company is also considering setting up a call center for technical support in India, according to the Financial Express.
Diebold signed a three-year agreement with Indian IT firm Tata Infotech, wherein Tata owns the manufacturing facility and manufactures ATMs for Diebold. (See related story Diebold signs ATM manufacturing pact with Tata Infotech)
When the agreement expires in 2005, Diebold will evaluate its manufacturing plans, which could include buying out Tata or setting up its own facility, Cushman told Financial Express.
