Outsourcing has been a strong concern in recent years, but one U.S. area is seen as the place to be in the tech industry. High-tech companies across the globe are setting up shop in Silicon Valley, settling in to conduct long-range research and help design innovative products for global markets.
The success of IT corporation Cisco, headquartered in San Jose, has led others to follow suit. Swedish phone-equipment company Telefon AB L.M. Ericsson’s CTO works from the same area, supervising more than 1,200 employees. Huawei Technologies Co. opened the doors to its Santa Clara R&D Center in April and expects to add anywhere from 120 to 230 employees by the year’s end. And continuous growth in the area of mobile devices means oversees companies want close proximity to the headquarters of Apple Inc., producer of the iPhone and iPad, and Google Inc., producer of the Android.
“The epicenter for the handset industry has shifted from Finland to Silicon Valley,” Telefon CTO Håkan Eriksson told The Wall Street Journal. Despite general job loss in the area due to lower labor costs in India and China, recruitment of local technology talent to work on projects such as software and mobile development keeps the U.S. competitive in the global market.
“To be globally competitive,” Nokia Research Center Director John Shen told the Journal, “you really need to have a footprint here in the Valley.”
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