Monday, December 6, 2004
Conexant Offshores Development To India
Newport Beach-based Conexant announced this morning that it has acquired Paxonet Communications, a Fremont-based company which maintains most of its workforce in India. Paxonet provides semiconductor design services for a variety of customers, including Conexant. According to Conexant, Paxonet has 105 employees, with 100 of them in Pune and Bangalore. The acquisition adds to the already 200 employees it has at its design center in Hyderabad and Noida. In a statement, Conexant CEO and Chairman Dwight W. Decker said that the acquisition helps the company reduce operating expenses by shifting product development resources to lower-cost regions of the world. The company's move is consistent with the controversial trend of offshoring not just mundane tasks but also higher level product development tasks from the U.S. to India and other lower cost wage centers.