BANGALORE

THE SILICON
VALLEY OF
INDIA
Overview of the case
 Bangalore as an IT hub.

 Upcoming competitors are Chennai, Hyderabad, Pune, Mumbai.

 High level R/D centers in Bangalore

 Development of industries like bio tech.

 Role of real estate market in the growth of IT sector in the late 1990’s

 MNC’s were outsourcing functions apart from IT

 Entrance of big companies.

IT policy was first announced in Karnataka

Exemption of purchase tax on IT equipments for a period of 5 years

from 2000

S/w industry was treated as an industrial sector and not as commercial

consumer

Several taxes related to IT were reduced.

Rebate of 15% was made available on the cost of land allotted by state
agencies.

Governments intervention in the development

of new flyovers.
Factors that make Bangalore more
attractive for an industry

People- number , quality, education

Infrastructure- telecom, power, roads, airports

Financial- cost of living, real estate prices.

Catalysts- government support, supporting industries,

political stability, whether.
Problem identified.
Increased sales tax from 5.3% to 13.5% on computer hardware

Transfer of efficient officers

Airport project was delayed

the city was bursting with people and vehicles causing a severe strain on the
infrastructure.

inability to deal with problems like traffic congestion,

power shortages and inadequate airport facilities.
Q1.Bangalore’s competitive advantage
IT education hub

Created Information Technology Park at Whitefield, Bangalore

Introduced concepts of electronic kiosks.

Karnataka has 135 engineering colleges, 103 R&D centres, 181

polytechnics, 600 ITI and 11 universities to see that enough
talent pool is available locally.

Karnataka state government also was the pioneer

in the country to formulate IT industry specific regulations
Contd..
NASSCOM helped Bangalore in becoming The silicon valley of
India

Exemption of purchase tax on IT equipments for a period of 5 years from 2000

S/w industry was treated as an industrial sector and not as commercial

consumer

Rebate of 15% was made available on the cost of land allotted by state
agencies.

Governments intervention in the development of new

flyovers.
Q2. Sustaining the competitive advantage

Bangalore is uniquely positioned as the city with highest

availability of middle and top management talent

continuous source of quality manpower and industry

friendly policies

Attracting foreign investment and generating

employment.

The new govt. policies to sustain IT sector.

Better employee loyalty

Q3.What should be done to sustain
Bangalore’s competitive advantage?
Proper cooperation between IT organization &
government.

Improvement in infrastructure .

Reduction in taxes related to IT sector.

Power transmission.

More capital investment to improve IT

sector.
Strategies
IT project plan template.

Employee training plan.

New IT employee implementation.

IT manager Skills matrix.

IT Budget template.

Thank you