THE BANGALORE ECONOMICS BY THE IT’S SECTOR

Bangalore's 52,346 crore (US$11.62 billion) economy (2006–07 Net District Income)
makes it one of the major economic centres in India,[53] with the value of city's exports totalling
43,221 crore (US$9.6 billion) in 2004–05.[54] With an economic growth of 10.3%, Bangalore is
the fastest growing major metropolis in India,[55] and is also the country's fourth largest fast
moving consumer goods (FMCG) market.[56] With a per capita income of 74,709 (US$1,658.54)
in 2006–07,[53] the city is the third largest hub for high net worth individuals and is home to over
10,000 dollar millionaires and about 60,000 super-rich people who have an investable surplus of
4.5 crore (US$1 million) and Rs. 50 lakh (US$ 111,000) respectively.[57]

The headquarters of Infosys, India's second largest IT company, is located in Bangalore

The headquarters of several public sector undertakings such as Bharat Electronics Limited
(BEL), Hindustan Aeronautics Limited (HAL), National Aerospace Laboratories (NAL), Bharat
Heavy Electricals Limited (BHEL), Bharat Earth Movers Limited (BEML) and Hindustan
Machine Tools (HMT) are located in Bangalore. In June 1972 the Indian Space Research
Organisation (ISRO) was established under the Department of Space and headquartered in the
city.

Bangalore is called the Silicon Valley of India because of the large number of information
technology companies located in the city which contributed 33% of India's Rs. 144,214 crore
(US$ 32 billion) IT exports in 2006–07.[58] Bangalore's IT industry is divided into three main
clusters — Software Technology Parks of India (STPI); International Tech Park, Bangalore
(ITPB); and Electronics City. UB City, the headquarters of the United Breweries Group, is a
high-end commercial zone.[59] Infosys and Wipro, India's second and third largest software
companies are headquartered in Bangalore, as are many of the global SEI-CMM Level 5
Companies.

The growth of IT has presented the city with unique challenges. Ideological clashes sometimes
occur between the city's IT moguls, who demand an improvement in the city's infrastructure, and
the state government, whose electoral base is primarily the people in rural Karnataka.[60] The
encouragement of high-tech industry in Bangalore, for example, has not favoured local
employment development, but has, instead, increased land values and forced out small
enterprise.[61] Bangalore is a hub for biotechnology related industry in India and in the year 2005,
around 47% of the 265 biotechnology companies in India were located here; including Biocon,
India's largest biotechnology company.[62][63]
Infosys, Wipro, iGate, Tata Consultancy Services, Accenture and US based companies like
Google, IBM, Hewlett-Packard, Yahoo, Oracle Corporation, Cisco, Microsoft and Intel have
their offices in Bangalore.

Multi-National Companies of IT’s Sector in BANGALORE

Office of Oracle (formerly i-flex Solutions) at Bagmane Tech Park Bengaluru, India

Infosys Technologies headquarters

Bengaluru is called the 'Silicon Valley of India' due to the large number of information
technology companies located there. Many multinational corporations, especially computer
hardware and software giants, have operations in Bengaluru.

Bengaluru's IT industry is divided into two main "clusters"[7]—Electronics City and Whitefield.
New clusters in Bellandur and Challaghatta have emerged in the last few years along the Outer
and Inner Ring Roads and in C. V. Raman Nagar near Old Madras Road.

Electronics City, located in the southern outskirts of Bengaluru, is an industrial park spread over
330 acres (1.3 km2). Electronics City was formed in 1978.[8] 3M, Hewlett Packard and Siemens are
some of Electronic City's clients. Infosys and Wipro, India's second and third largest software
companies, are headquartered in Electronics City. The Software Technology Parks of India,
Bengaluru (STPI) was started at Electronics City in 1991 by the Ministry of Information
Technology. STPI Bengaluru counts among the premier and oldest Internet Service Providers
(ISP) in India. It was the first center to be Internet-enabled in India. Nortel Networks is a
prominent client of STPI Bengaluru.

Whitefield cluster is home to the International Technology Park Bengaluru. It was created as a
result of a joint venture between India and Singapore in January 1994. It is a large facility,
comprising 6 buildings—Discoverer, Innovator, Creator, Explorer , Inventor and Navigator.
The 7th building, belonging to TCS, is in the process of being built. The Export Promotion
Zone(EPIP) in Whitefield provides campus facilities for SAP, iGATE, Dell, TCS, Unisys,
Delphi, Huawei, Oracle, Perot Systems. Captive centres of Tesco, Shell, Aviva, GM, Schneider
Electric, GE and DaimlerChrysler are also located in Whitefield. Flowserve, a 100% subsidiary
of Flowserve Corp(NYSE:FLS) also has a Manufacturing Plant and R&D center located in EPIP
Area.

The Inner Ring Road cluster near the HAL Airport in Challaghatta includes Dell, Microsoft,
IBM, Yahoo, NetApp, McAfee, Bearing Point, Fidelity, ANZ, LG, Covansys, Synergy, PSI
Data, Target, Misys, Dendrite, Sasken, BPL Sanyo, OpenSilicon and Lenovo.

The Bellandur Outer Ring Road cluster houses Accenture, Intel, Aricent, Symbol, Cadence,
Cisco, Nokia, National Instruments, Honeywell, ARM, Cummins, JP MorganChase, Oracle,
Logica CMG and i2 Technologies.

Bagmane Tech Park located in C. V. Raman Nagar off Old Madras Road, houses Oracle
(formerly i-flex Solutions), Motorola, Texas Instruments, Samsung, Dell and Cognizant, among
other companies. Old Madras Road also hosts C-DAC,one of the premier Govt of India's IT
R&D institute.

Manyata Technology Park is a SEZ (special economy zone) in Nagawara along the outer ring
road where many MNCs have put office. IBM, Philips, NXP, Alcatel-Lucent, Nokia-Siemens,
Cognizant Technology Solutions are some of the major companies in this area.

In August 2005, the Bengaluru Forum for IT (BFIT), which consists of 18 major multinational
IT firms including Sun Microsystems, Texas Instruments, Philips, Novell, vMoksha, Synopsys,
Hewlett-Packard and Motorola, threatened to boycott the Bengaluru IT convention. The
proposed boycott was designed to indicate the displeasure of local and international technology
companies with the city's lack of progress on the infrastructural front. Increasingly, new IT
centers are being built away from this city due to long inner-city commute times, poor
infrastructure, high land and labor costs, increasing environmental problems and labor retention
issues.

Bangalore is also hub to many high-tech companies Infosys, Wipro, Tata Consultancy Services,
Accenture and many others.