Microsoft has announced a state-of-the-art R&D facility would house researchers from Microsoft Research India, and their Bangalore Microsoft India Development Centre (MSIDC) team who contributes to Microsoft Corp's adCenter technologies. The new R&D facility building measures 1, 54,000 sq ft.

In India, Microsoft first set up an R&D center back in 1998 in Hyderabad in 1998, and Microsoft Research India was established in 2005. Microsoft had previously announced the extension of engineering efforts to the city in tandem with their Search alliance between it and Yahoo Inc. President, Online Services Division, Microsoft Corp, Qi Lu inaugurated the building and stressed on India’s role in Microsoft's strategy of global shared development.

He said, "The availability of world class talent, advanced infrastructure and proximity to the booming emerging markets of the world are key reasons behind this. The decision to set up our second R&D center in Bangalore reinforces Microsoft's commitment towards India." "The process of transition is now complete. With the combined strength of Yahoo and Microsoft Corp's Search marketplace, we are ready to deliver greater and improved innovation for consumers, better volume and efficiency for advertisers and better monetization opportunities for web publishers."