In a move to leverage rapid growth in Asia, Cisco is stepping up to increase investments in China while initiating a venture investment program in India.

 

The networking vendor expects to invest $32 million in five years' time to set up its first research center in China, and dedicate it to developing VoIP (Voice over Internet Protocol) technologies for telecom operators. Scheduled to open in the third quarter of 2005, this Shanghai-based R&D facility will be recruiting approximately 100 personnel over the next 18 months.

 

Earlier, Cisco decided to launch a venture capital program in India to tap into investment opportunities in new enterprises. A new strategy has also been adopted for the India market, including the set-up of four business groups to concentrate on IT services, enterprises, service providers, and the government. Cisco's research center in Bangalore currently has over 500 engineers, developing routing and optical technologies as well as IOS (Internetwork Operating System) software. 

 

Cisco's attempts bear resemblance to those of its competitor Juniper Networks, which announced plans earlier in September to establish an R&D center in China. This center will be focused on development of network and security devices for small and medium businesses. A similar research facility was also set up in Bangalore, India in 2003.