The Bangalore Brand
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Case Details:
Case Code : ECON014
Case Length : 14 Pages
Period : 1985-2004
Pub Date : 2004
Teaching Note : Available
Organization : -
Industry : -
Countries : India
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ECON014) click on the button below, and select the case from the list of available cases:
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"Fifteen years ago, not one in 1,000 Americans could spot Bangalore on the
map. Today, six out of seven think Bangalore is the only city in India. They
basically believe 1 billion people live in Bangalore."
- Tom Peters in 2002.1
Introduction
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Referred to as the 'Silicon Valley of India,'
Bangalore, the capital of the southern state of Karnataka, had a
population of 5,686,8442 in 2001,
making it India's fifth largest city3
(Refer to Exhibit I). Around 1300 information technology (IT) companies
operate in Bangalore and it is home to around 110,000 technology
workers. This is in addition to the 60,000 people working in Business
Process Outsourcing (BPO) firms.
In 2003, on an average, two research and development (R&D) centers of
MNCs were opened every week in Bangalore. AMD, AOL, Cisco, Dell, Delphi
Automotive Systems, Deutsche Bank, Eastman Kodak, E&Y, Google, HP,
Intel, IBM Corp, Motorola Inc., Oracle, |
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Lucent, Nortel Networks Ltd, SAP, Tektronix, Texas
Instruments, and Yahoo have a presence in the city and some of the Indian IT
majors like Infosys Technologies (Infosys), MindTree Consulting (MindTree),
Wipro Technologies (Wipro) etc., are headquartered in Bangalore.
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Fourteen of the top 20 IT exporters in India (Refer
to Exhibit II) have a development center in the city.
The anti-outsourcing debate in the US in the early 2000s could not stop
an outflow of Rs. 19.7 billion as foreign investment to Bangalore in the
year 2003-04 to set up 110 software and BPO companies. Also during the
year, software exports from Bangalore constituted around 36 per cent of
the total exports from the Software Technology Parks of India (STPI).4
In the previous year too, Bangalore had been the leader in software
exports (Refer to Exhibit III). Of the $4 billion IT export revenues
from Karnataka in 2003-04, 95 percent came from Bangalore. The first
four months of fiscal 2004-05 have seen 61 IT companies setting up
operations in the Garden City.5 |
The Bangalore Brand
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