Facebook Inc(NASDAQ:FB), the world's top social networking site, has opened its first research and development centre outside the United States in London.
Increasingly more of Facebook's population is from outside the U.S. and setting up an engineering centre outside its home country is recognition of this fact.
According to Tech Crunch, this development has two sides to it. From the point of view of the London tech scene it is a positive development as it attests to the engineering talent in the city as Facebook follows others who have already established their presence here, such as Google and Amazon among others.
However it also poses a challenge as tech- start-ups in London have realised.
Big companies like Facebook and Google act as irresistible magnets for bright young talent, who do not then join the start-ups in the country.
It creates a challenging environment for small companies that look to hire engineers but find that they are all drawn away by these larger corporations.
Facebook has appointed Philip Su, one of its top-notch engineers, in charge of the London operations. Su had led the company in its integration with Skype. The engineers it has working on the team include those who have been instrumental in developing such features as App Centre, Timeline, Ticker and photo products.
Tech Crunch said, "That points to Facebook more or less creating a mirror structure here in London, working in a number of different areas rather than focusing necessarily only on services it might roll out outside the U.S."