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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"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

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,

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.

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 - Next Page>>

1] Vikas Singh, "The wit and wisdom of Tom Peters," Times News Network, Oct 29, 2002.

2] 2001 census of Govt. of India.

3] After Mumbai, Kolkata, Delhi, and Chennai.

4] Software Technology Parks of India is a society under the Ministry of Information Technology, Govt of India, set up in 1991 to promote the software exports industry.

5] Bangalore is also known as The Garden City due to its salubrious climate and greenery.

 

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