Microsoft might be setting up a R&D center in China

Microsoft might be setting up a R&D center in China

Sources in media claims that the software company Microsoft is considering setting up a research and development center in Shanghai for its online MSN service.

If this happens, it would become the first such center for the company outside their home market of United States.

One possible reason for this expanded presence in China is the growing importance of the country as an internet market. Also, Microsoft has been losing talent to competitors including Google in this market.

Media quoted a source familiar with this plan: “It’s a clear signal that Microsoft won’t give up its online MSN service in China even though it may have some problems in its local operations. Twenty million dollar is really small money to Bill Gates, but it’s important to notice that Microsoft has chosen Shanghai for its first overseas MSN R&D center.”

This center could come up at Shanghai’s Zizhu Science Park and the company is likely to use it for development of web related software and services.