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Bangalore information technology cluster

Author

Listed:
  • Mia Anfinsen
  • Sarah Jacobus
  • Clyde Johnston
  • Uri Jones
  • Ingo Böbel

Abstract

The information technology (IT) cluster in Bangalore, India has developed substantially since the liberalisation reforms introduced in 1991. This development has been underpinned by government support and a labour arbitrage strategy that seeks to carve out a share of the large IT services markets in Europe and the USA. More recently, however, these costs have been rising in India opening up opportunities for foreign IT service rivals in places such as Eastern Europe and China. With the labour arbitrage strategy waning, we believe the Bangalore IT cluster needs to realign its strategy towards higher-value exports and the growing domestic market. In order for such a strategy to work, a number of critical reforms are needed to allow the domestic IT services industry to adjust. Most, if not all, of these reforms require public sector support and it is here where the most intractable changes are necessary.

Suggested Citation

  • Mia Anfinsen & Sarah Jacobus & Clyde Johnston & Uri Jones & Ingo Böbel, 2014. "Bangalore information technology cluster," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 7(3), pages 191-216.
    • Handle: RePEc:ids:ijepee:v:7:y:2014:i:3:p:191-216
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    Cited by:

    1. Elena Popkova & Alexander Natsubidze & Elena Kukina & Viktor Urodovskikh & Elena Ioda & Nadezhda Neustrova, 2015. "Problems and Perspectives of Implementation of Cluster Initiatives in Business in Developing Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 187-196.
    2. Oleg A. Zorin & Elena V. Grinavtseva & Elena V. Bogomolova & Larisa Moskovtseva & Elena G. Popkova & Irina Morozova & Tatiana N. Litvinova, 2016. "Contradiction of clustering: cluster as a necessary condition and a threat to economic security," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 9(1), pages 89-99.

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