A general view of eBay headquarters in San Jose
A general view of eBay headquarters in San Jose, California February 25, 2010. REUTERS

EBay Incorporated (Nasdaq: EBAY) will open a software development center in Bangalore, India, that will employ as many as 1,000 engineers to support its eBay Marketplaces and PayPal products, the company announced Tuesday.

Both eBay divisions, Marketplaces and PayPal, are expanding quickly, and the new development center will support their expansion. Bangalore is a center of the Indian tech industry and is already home to major software players like the Indian companies Infosys Limited (Nasdaq: INFY) and Wipro Limited (NYSE: WIT) as well as branches of U.S. companies like Google Incorporated (Nasdaq: GOOG), Yahoo! Incoporated (Nasdaq: YHOO) and Cisco Systems Incorporated (Nasdaq: CSCO).

To support this growth, we are looking to tap into the large pool of software engineering talent in Bangalore to come innovate with us ... We are committed to India as a technology hub and see India's software engineering talent as a critical driver for the long-term success of PayPal's global payment platform, Anupam Pahuja, PayPal general manager said.

The new Bangalore facility will be San Jose-based eBay's second Indian development center. The first, located in Chennai, employs 2,200 engineers. The company also has an Indian business unit in Mumbai.

Ebay first entered the Indian market in 2004 when it purchased the e-commerce website Baazee.com, according to the Wall Street Journal. The Indian branch of the company now has over three million users. The Indian unit is working on expanding and improving its mobile offerings on the iPhone, Android and Windows platforms. The company is focusing on hiring senior engineers with development experience across the product development and support spectrum.

Ebay Incorporated (Nasdaq: EBAY) shares were down 27 cents to $39.79 Tuesday morning.