Alongside the development and cost-cutting strategies of many other huge technology multinationals such as IBM, Sun Microsystems, Cisco Systems Inc., and Microsoft Corp., in 1994 Oracle established an India Development Center in Bangalore to support its product software development.

In 1998 the software maker added a second development center in Hyderabad, the high-tech capital of Andhra Pradesh.

American companies, in particular technology companies, seeking out a cheaper, more highly educated labor force have contributed an estimated $10 billion to the Indian economy over recent years, according to reports. And many heavily concentrated high-tech cities like Hyderabad are said to more closely resemble Silicon Valley business culture than the more provincial India of a decade ago.

In keeping with the migration of Silicon Valley, Redwood Shores, Calif.-based Oracle announced plans this week to enlarge its footprint in India even further by expanding its Bangalore development facilities and laying down the cash to purchase a reported seven acres of land in Hyderabad for the expansion of its Hyderabad-based India Development Center.

It is expected that Oracle will add 1,800 new jobs over the next few years, bringing its Indian employee roster to more than 4,000. This at a time when the software maker is slashing jobs at its Silicon Valley facilities.

The new 500,000 sq. ft. Hyderabad center will be used primarily for the development of e-business applications, according to Oracle, whereas the company's preexisting Development Centers focus on Oracle databases, tools, and application servers. Oracle has also outlined plans to include a separate Internet sales unit at its new India facilities, although details have not yet been forthcoming.

Financial terms of the land acquisition were not made available by Oracle, however according to a representative, the Chief Minister of the state of Andhra Pradesh, in which the new facility will reside, was present at the contract signing ceremony.

"India is a jewel in Oracle's crown," said Derek Williams, executive vice president of Oracle Asia-Pacific. "We have invested well in expanding our presence in India and plan to continue to do so."

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Additionally, Oracle entered the second development phase of the Oracle Technology Park in Bangalore, in the state of Karnataka, which is now host to three major Oracle divisions: Oracle's India Development Center, the company's India Support Center, and Oracle Solution Services India.

The 213,000 sq. ft. Technology Park houses an 11-story parking facility, a modern cafeteria that can seat 500 people, recreational facilities, and a fully stocked and computer-accessible library.

"We see the extension of our facilities in these two technologically-savvy states as an important step in Oracle's continuing partnership with India," said Shekhar Dasgupta, country manager for Oracle India.

Oracle India maintains additional offices in New Delhi, Calcutta, Chennai, and Mumbai, and through partners under the Oracle Alliance program.