British telecom giant Cable & Wireless (NYSE:CWP)announced earlier this week that it will be investing US$10 million to augment its footprint in India. The company has been operating in India since 1995, providing networking and system integration services.

The investment is geared towards expanding the company’s headcount (which is expected to increase to 360 employees within a year). Right now, C&W counts with 180 workers spread around offices in Bangalore, Mumbai, and New Delhi and service centers in Chennai, Calcutta, Pune, and Hyderabad for provision of local services. About half of the investment has been earmarked for expansion of C&W’s network services in Bangalore and Bombay.

Bangalore is the location for the India Centre of Excellence (ICE), which provides complex network and telecommunications solutions to other Cable & Wireless operations in Asia, including Cable & Wireless Japan. The amount of intellectual capital that is available in Bangalore, or the “Garden City” is impressive. It is not only the home for the prestigious Indian Institute of Science, but also represents one of the world’s largest concentrations of skilled high-tech workers, with an estimated 160,000 employees. Firms, from chipmaker AMD (NYSE:AMD) to tech outsourcer Wipro Technologies (NYSE:WIT) have chosen Bangalore as a location for some aspect of their operations. The San Francisco Chronicle had a pretty interesting article last week about the city, which is definitely worthwhile reading.

Note: Here is another article on why AMD chose to set up a design facility in Bangalore.