Ariba has set up a software development facility in India, which will work on product development as well as technical support and services.
Ariba supplies software for online sourcing and procurement. It employs about 80 people at the Bangalore centre, and plans to double the headcount by the end of next year. The centre could house 300 staffers.
Ariba also has a significant number of customers in India, a base that increased with the recent acquisition of FreeMarkets, a sourcing software company in the US.
India also is an important location for Ariba's "low cost country sourcing" programme, which involves identification and qualification of low-cost suppliers in various countries, according to David McCormick, Ariba's president.
"Big multinational companies are interested in doing business in India and, being in the business of spend management, we help them to work out what they buy and who they buy from," McCormick said.
Services like the low-cost country sourcing programme are a key differentiator for Ariba, as they enable it to offer complete spend management solutions to customers, McCormick said. "Customers don't want to partner with three or four people to solve a business problem," he added.
Besides the 80 staff at the development centre the company also has about 40 employees working at its sales and marketing office in Gurgaon near Delhi, McCormick said. It employs approximately 1,000 workers in the US.
John Ribeiro writes for IDG News Service