Why Is Ericsson Doubling Its Workforce in India?


Sep. 17 2015, Updated 9:07 a.m. ET

Ericsson doubling workforce in India

India (EPI) is a key market for Ericsson (ERIC) in terms of investment, resources, and market. The company is planning to double its workforce in India over the next five years, with new jobs to be created in the service segment. The move comes as Ericsson’s Global Network Operations Center in India is witnessing strong development driven by its first pan-India managed services contract with Reliance Communications.

While Ericsson plans to double its workforce in India, it slashed 2,100 jobs in its home country of Sweden as part of its restructuring program. The job cuts affected Ericsson’s R&D (research and development) and supply units.

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Ericsson’s employee base in India

As seen in the above graph, Ericsson has reduced its employee count in all markets except India and the Mediterranean. The company increased its employee count in India by 15% year-over-year to 21,353 as of June 2015. The company has more employees in India than in Sweden, where it had 17,569 employees as of June 2015. Ericsson’s employees in India are spread across manufacturing, research and development, the Global Network Operations Center, and sales operations.

Ericsson to boost research operations in India

Recently, The First Post reported that Ericsson is planning to hire 82 engineers at its R&D facility in Bangalore. The engineers will conduct research in the areas of cloud computing, Internet protocol routing, network function virtualization, and virtual platforms. Ericsson India has three R&D facilities in Gurgaon, Chennai, and Bangalore.

India attracts investment from global technology and Internet players

  • According to The Economic Times, “Alcatel-Lucent’s chief executive said that India is the only country where the company is growing its R&D headcount” (ALU).
  • In June 2015, Cisco (CSCO) CEO John Chambers told reporters that the company will invest $40 million to expand its India operations.
  • E-commerce players Alibaba (BABA) and Amazon have increased their investments in India.

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