Offer letters have been sent to 300 prospective employees, who have been asked to join by next month, Mr Mukul Agrawal, managing director, Unisys Global Services India, said. Unisys India target is to hire 700 more people by end next year.

Unisys is committing big money -- approximately $180 million (Rs 790 crore) -- over next five years for its wholly-owned subsidiary in Bangalore, which will house software services, business process operations and call center operations.

The $5.9 billion Unisys will employ around 2000 people over the five years in these activities. Mr Cal Killen, vice president, solutions development at Unisys had earlier in a press meet at Bangalore said.

So also the company's President, Mr Joseph McGrath who recently said that 20% of the company's workforce will be in cost effective destinations like India. Unisys now employs around 37,000 people.
The type of software projects that Unisys India will work on include high end systems software, developing and maintaining its home grown solutions for specific verticals and back office and technical help desk for clients in the banking and financial sector .

Mr Agrawal said that Unisys will continue to work with third party software development and BPO firms in India. It presently outsourcers work to Hexaware, Caritor and Tata Infotech. Over 800 employees of these companies work for the company.

He said that salary hike in the software sector is a cause of concern as in the long run it would erode the cost benefit that India offers.

The bigger bane however is the stiff competition for high end talent. "Getting senior talent in systems software is becoming tough" he said to prove his point.

With Bangalore becoming the preferred base for big and medium size multinational technology firms, there is intense competition to hire experienced talent. Analysts predict that for software companies wanting to work on high end projects, this shortage of talent could play spoil sport.

Mr Agrawal said Unisys India attraction besides attractive compensation is in offering engineers a dual career path and abundant opportunity to hone their skills he said.

The scope for expanding the Indian center is high and the possibility of having additional software centres within India cannot be ruled out he said.

Unisys serves six primary vertical markets. These include financial services, public sector, communications, transportation, commercial and media.