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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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Competition to Bangalore has come from cities like Hyderabad, Chennai, Pune, NCR, Kolkata, Jaipur, Chandigarh, Pune, and Kochi, among others. Wipro Ltd., with 11,000 employees in Bangalore, has been looking for growth beyond Bangalore. "Bangalore is a zero-sum game. In terms of infrastructure, there has not been any material improvement in the last five years. As a result, it is becoming difficult to sustain growth here. As part of our retention management, we want to move for an incremental growth outside Bangalore as much as possible," said Vivek Paul, vice-chairman, Wipro. As per reports, IBM Corp. has been considering Kolkata as the hub for its software and IT services activities in India.

Said Kiran Karnik, President, Nasscom, "The city (Bangalore) attracts new entrants, but bigger players are beginning to look elsewhere." Added Subroto Bagchi, COO, MindTree, "Bangalore has not yet lost its edge, however, if the situation deteriorates, it could lose business to smaller towns and cities, where lower population levels provide more room for growth."...

Looking Ahead

A CII paper brought out in 2004 recommended to the Karnataka government to put in place a plan for implementation of infrastructure projects like the IT corridor project and the Bangalore-Mysore Expressway project. In order to decongest Bangalore and spread development across the state, the paper recommended that the government support the development of satellite townships and other cities in Karnataka. According to Nasscom, India is expected to achieve revenues of $62 billion by 2008-09 and $148 billion by 2012 in ITES / IT, at a CAGR of 35 per cent over 2003 to 2012...


Exhibit I: Location of Bangalore
Exhibit II: The Top 20 IT Software and Service Exporters from India (Excluding ITeS-BPO)
Exhibit III: Software Exports from Companies Registered at Different STPI Locations (2002-03)
Exhibit IV: Leading Research Institutions in Bangalore
Exhibit V: Software Exports from STPI Registered Companies in Bangalore
Exhibit VI: Global ITeS/ IT Market (USD Billion)


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