IT in Bangalore: The Indus Valley, India s Silicon State

   

IT in Bangalore: The Indus Valley, India's Silicon State

One of the most important factors for the success of Bangalore as the pre-eminent region for high-tech development in India is the positive, open attitude of its people. Bangalorites have a long tradition of receptivity to ideas. Kailash Joshi, president of TiE, Silicon Valley, has characterized this region as having "cosmopolitan soil." This attitude positions the region for success in the globally linked innovation economy.

As the capital of the southern state of Karnataka, Bangalore benefits from early developments in infrastructure and strong government support for future growth in facilities. The establishment of the Indian Institute of Science (IISc), India's most prestigious research institute, was also key in drawing investment to the region. Also important was the setting up of the Indian software technology parks in 1991. In 1997 the government of Karnataka became the first state government to announce its own IT policy, and in 1999 the Indian Institute of Information Technology (IIIT) in Bangalore was established.

Bangalore has long been likened to the Silicon Valley in California for its attraction of entrepreneurial enterprises and innovation. Its historical emphasis on engineering and defense industry work, combined with the pleasant climate and high quality of life, has made it a magnet for skilled entrepreneurs seeking to make a fortune in the IT industry. In 1984, when the Indian government gave Texas Instruments (TI) the right to establish a 100% self-controlled offshore center in India, TI chose Bangalore as its site. Since then, MNCs have been flocking to this region.

The conglomeration of large global corporations like TI, Siemens, Phillips, Lucent Technologies, Motorola, Cisco Systems, Ericcson, Sony, Oracle, and Sun Microsystems has been another critical factor in the influx of investments in this region. In fact, these MNCs and successful Indian software companies like Wipro and Infosys have made considerable cooperative investments with leading local universities like the IISc and the IIIT in Bangalore. IISc itself has evolved from 10 joint projects with the industry sector in the last three years , to over 80 in the last year. [11]

The literacy rate in Bangalore is relatively high (80.5%) compared with the national rate (52%). The state government's IT policy has resulted in fairly strong connectivity (155,000 telephone connections, 10,000 Internet connections, and 11,500 e-mail connections in the year 2000 [12] ), which is well appreciated by the IT firms that have established base in Bangalore.

The 25 engineering colleges around the city provide a consistent surplus of talent. The IT sector is the biggest industry in Bangalore, with 32% of India's software production based there. [13] Besides the illustrious science and technology institutes, the Indian Institute of Management (IIM) and National Institute of Advanced Studies (NIAS) are also based in this city.

The concentration of these educational institutes, IT firms, and skilled talent in this region combine to make Bangalore the most technologically advanced of the high-tech regions in India. Strong government support in the form of legislative and infrastructure commitments serves to create a secure environment, as the government is building better roads and an international airport. At the same time, its existing educational systems are being enhanced by the development of learning centers and competitive R&D facilities.

International Tech Park, Bangalore: The One-Stop IT Solution

The International Tech Park of Bangalore is located about 20 km outside of Bangalore, and represents about 55% of the government's investment in the region. A joint venture between the investment section of one of India's largest corporations, the Tata Group , a consortium of Singapore companies led by Ascendas Land International Pte. Ltd., and the Karnataka Industrial Areas Development Board, the aim of this park is to create a "one-stop solution" [14] environment for the high-tech needs of knowledge-based MNCs in India. The park already accommodates major international conglomerates in IT- related services like telecommunications, R&D, financial services, biotechnology, and electronics. Despite the recent slowdown of the economy, Bangalore is gearing up to extend its commitments to current and future occupants . The following table shows the dramatic growth of the number of companies and the volume of exports over the ten years of development since 1992.

Table 17-3. Software Industry Growth and High-Tech Exports from Bangalore

Y EAR

N UMBER OF C OMPANIES

E XPORTS IN $ M ILLIONS

1992

29

1993

53

1994

79

3

1995

125

42

1996

163

100

1997

207

202

1998

267

368

1999

782

692

2000

812

995

Sources: Olivier Bomsel and Jo «l Ruet, " Digital India: Report on the Indian IT Industry ," Centre d' ‰conomie Industrielle, Ecole Nationale Sup rieure des Mines de Paris, www.cerna.ensmp.fr/Documents/DigitalIndia-MainFindings.pdf ; STPI (Software Technology Parks of India).

   


Creating Regional Wealth in the Innovation Economy. Models, Perspectives, and Best Practices
Creating Regional Wealth in the Innovation Economy: Models, Perspectives, and Best Practices
ISBN: 0130654159
EAN: 2147483647
Year: 2002
Pages: 237

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