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An in-depth analysis of the IT sector of Bangalore

Updated on January 27, 2015

Once known for its lush farmlands, Bangalore has now become home to some of the world's leading software companies, which are creating enormous jobs for young professionals across the nation. Even as per market analysis, the city has become more crowded over the past few years as job opportunities and economic growth have lured people from around the country to Silicon Valley of India, i.e, Bangalore.

India had already been considered as the haven by foreign companies to hire impeccable technical talent. After the setting up of these companies, India earned the reputation for high quality services, preferably Bangalore. It also produced a wide array of IT jobs in Bangalore, which grabbed the attention of job seekers from around the country.

3M, Hewlett Packard and Siemens are the major clients situated in the Electronics City. Infosys and Wipro are headquartered in the Electronics City. In 1991, the Software Technology Parks of India, Bangalore (STPI) was also formed in the Electronics City by the Ministry of Information Technology. Now, the STPI Bangalore is counted among India's premiere Internet Service Providers (ISP). Nortel Networks is one of the leading clients of STPI Bangalore.

The next stage saw the entrant of multinational companies in India, starting with the establishment of the US-based Texas Instruments with India’s VSNL4- Bangalore first offshore software production centre. Karnataka was also became the first Indian state to unveil its IT policy in 1997.


Early arrival of technology in Bangalore

The city registered an unsurpassed growth with the establishment of public sector units like Hindustan Machine Tools (HMT), Indian Telephone Industries (ITI), Hindustan Aeronautics Limited (HAL), National Aerospace Laboratories (NAL), Bharat Heavy Electricals Limited (BHEL), Bharat Earth Movers Limited (BEML) and National Government Electric Factory (NGEF) in Bangalore. Furthermore, the research and education establishments, such as the Indian Institute of Science (IIS), Indian Institute of Management (IIM-B), National Law School of India University (NLSIU), Indian Space Research Organization (ISRO) and Space Commission and Department of Space (DOS) also played a crucial role as the catalysts to the technology-driven atmosphere of the city.

All these changes helped in boosting the science, electrical and information technology industries earlier than other cities of the country. It ignites the growth of the internet based businesses in the city, which leads to the dotcom boom.

As the city's science and technology industry is now employing hundreds of people, the city soon emerged as the preferred destination for attracting technical talent from around the nation in the early 90s. With the availability of immense talent and expertise, the world took a notice of the untapped potential present in Bangalore.

Emerging as the outsourcing capital of the rest of the world

The state government took initiatives to develop the electronics city in Bangalore. Sprawling over 335 acres of land, the Karnataka government took the most crucial project to formulate the blueprint of the new industrial park, known as the Electronics City. At present, the Electronic City is home to more 150 IT/BPO companies and making a substantial contribution towards the total outsourcing revenue from Bangalore. During the 1980s, a good number of private companies, specialized in software production and computer system, started setting up their centers in the city.

Continental, the world's renowned automotive supplier, tyre manufacturer and industry partner, has opened its new technical center to expand the R&D facilities in Bangalore. With an investment of EUR 12.4 million and the headcount of nearly 1'000 engineers, the new Technical Center India (TCI) facility at Gold Hill Supreme, Electronic City Phase II Continental's would meet the burgeoning demands of engineering & software development skills to bolster the R&D projects as well as local customers.

As the outsourcing destination

What followed next the incubation stage in Bangalore was the eruption of various ITO/BPO companies in mid 1990s to 2000 with over 5 MNCs were established in Bangalore on an average every month.

Developed nations like USA and UK were facing a severe talent sparsity. Back in the 1970s and 1980s, the entire batches of students from esteemed technical institutes in India used to migrate to European nations. As a result, soon a large number of Indian professionals started working in these foreign companies. This also encouraged many foreign companies to take a trip to Bangalore and they were truly impressed with the technical know-how of professionals and also with the excellent climatic conditions of the city.

The early entrants in the IT sector of Bangalore included names like Texas Instruments (1985), Motorola (1987), HP (1989), Nortel (1991), Sun Microsystems (1995), Cisco (1995), Philips (1996), IBM (1997), and Intel (1998). However, soon after hearing the success stories of these early captive setups, various other companies, like Yahoo, Google, Microsoft, among others, also established their offices in the city, and it completely changed the scenario of the job market, and new jobs in Bangalore were emerged.

The beginning of the 21st century saw the mammoth growth of various internet based companies in Bangalore and as a result, soon the city was conferred with the title of the 'Silicon Valley of India'. It is a known fact that most of the companies in & around the international arena are now situated in the city and producing a galore of job opportunities in Bangalore.

Classification of the IT industry

The IT industry of Bangalore can be mainly classified under two clusters- Electronics City and Whitefield. Also, various other new clusters in Bellandur, Hebbal and Challaghatta emerged in the past few years. The Electronics City has already been explained in above paragraphs, and now it is the time to cover other IT clusters.

Whitefield= It is home to the International Tech Park Bangalore and was mainly formed after the joint venture between India& Singapore in 1994. It is a large facility which comprises of 8 buildings- Discoverer, Innovator, Creator, Explorer, Inventor, Navigator and Voyager plus there is another building which is belonged to TCS. The Export Promotion Industrial Park Zone(EPIP) in Whitefield is providing campus facilities to below companies-

Perot Systems

Besides these, there are captive centers of Tesco, Shell, Aviva, GM, Schneider Electric, GE, Sapient, Goodrich, DaimlerChrysler, Symphony Teleca Corp and Tangoe which are also situated in Whitefield. Flowserve, which is a subsidiary of Flowserve Corp, has its manufacturing plant and R&D center situated in the EPIP Area.

Other IT parks

The Bellandur - Marathahalli - Outer Ring Road cluster encompasses offices of below companies-

EMC Corporation
National Instruments
JP MorganChase
Logica CMG
Business Objects
Freescale Semiconductors

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It also includes seven other IT parks, like RMZ Ecospace, Prestige Tech Park, Intel Park, Cessana SEZ, Vrinadavan IT Park, Global Technology Park and 3Salarpuria IT Parks. The sprawling IT sector has produced enormous IT jobs in Bangalore, for both freshers and experienced professionals.

Bearing Point
PSI Data
BPL Sanyo

Then the Inner Ring Road cluster has Embassy Golf Links Business Park, which houses companies like-

ITC is planning to set up an IT hub in Bangalore, spreading across 18 million square feet. The Bangalore hub would become the pivotal software development center.

Salary packages

Bangalore is considered as the best paying city in India. Known as the mecca of the IT sector in India, the available jobs in Bangalore are rewarding, both in terms of monetary benefits and career progression. To get a clear idea, we will take into account some of the common job profiles exist in the IT sector of Bangalore.

As the Senior Software Engineer, you are entitled to earn Rs 711,806 per annum, while, the SAP consultant position makes you eligible to get Rs 606,150 per annum. Similarly, as the Lead Software Engineer, you can earn Rs 1,0115,74 per annum, whereas the job of a Software Developer would help you in earning Rs 392,728 per annum.

Then there is a Bagmane Tech Park, which is situated in C. V. Raman Nagar and houses companies like Oracle Corporation, Motorola, Texas Instruments, Samsung, Novell, Dell, Cognizant and Volvo.

Manyata Technology Park is the special economic zone in Nagawara where many top-notch companies like IBM, Philips, NXP, Alcatel-Lucent, Nokia Siemens, Cognizant Technology Solutions, Samsung have set up their centers.


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