Wipro Technologies, the global services arm of Indian outsourcing company Wipro Ltd., plans to open a software development center in Atlanta, the company said.

Wipro (nyse: WIT - news - people ) will initially employ 200 people and anticipates about 500 positions within three years, mostly graduates from state universities, the company said in a statement.

?The center is part of Wipro's strategy to build global delivery capabilities and will significantly increase the company's presence and base of local hires in the United States,? the Monday statement said.

Western companies routinely shift information technology jobs to countries such as India, where wages are low and skilled workers are plentiful.

The practice has benefited Indian software companies, some of which are now setting up centers outside India to compete with IBM Corp. (nyse: IBM - news - people ), Accenture (nyse: ACN - news - people ) and other global computer services companies.

?The work we're doing requires more and more knowledge of the customers? businesses, and you want local people to do that,? said P.R Chandrasekar, President, Wipro Technologies Ltd. ?The Atlanta center is an investment that will help Wipro's existing customers as well as help address new business opportunities.?

Wipro already operates software development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada. The company said it chose Atlanta because of its proximity to key universities.

The University System of Georgia has already provided Wipro with ?a comprehensive work force development program,? Wipro's statement quoted chancellor Erroll B. Davis Jr. as saying.

?We tapped into the resources of Georgia's 35 public colleges and universities to find the best solution for this company,? said Davis.

Also, Kennesaw State University and Southern Polytechnic State University are collaborating with Wipro to create an innovative curriculum development and delivery system, he said.

Earlier this month, Wipro Ltd. said it would buy Infocrossing Inc. (nasdaq: IFOX - news - people ) for about $600 million. The New Jersey-based company provides outsourcing services to mid-sized companies in the United States.