The last few decades have seen a seachange in the economy of Karnataka and the information technology (IT) and bio technology (BT) sectors have had a great deal to do with it.
The rise of the IT sector has seen an exponential growth of
and conversely it has also strained the fragile infrastructure. The coming of IT companies in and around Bangalore Bangalore have led to a sharp rise in rentals, resulted in influx of people into Bangalore from all over the world, led to severe housing shortage and also transformed into one of the costliest cities of the world. Bangalore
The software exports from Karnataka has been steadily rising over the years and
has been the main engine of this growth. No wonder, Karnataka stands first among all the States of India in terms of revenue generated from software exports. Bangalore
Software exports from Karnataka amounted to excess of Rs. 48,700 crores ($11.6 billion) during 2006-2007 and
had a major share in this pie. This achievement has earned Bangalore the well-deserved sobriquet of Silicon Valley of India. Bangalore
Apart from the rising exports, the presence of major software companies in
Bangalore, the research and development in IT has all contributed towards making Bangalore the Silicon Valley.
Though most software companies are located in
Bangalore, other centres such as Hubli-Dharwad, Mangalore, Mysore and are fast emerging. Belgaum
Karnataka today has about 40 per cent share of software exports from India and the State has set for itself an ambitious export target of Rs. 4 trillion (Rs. 4 lakh crore) by 2020.
The export during 2011-12 was Rs. 135,000 crore and it has so far provided employment to eight lakhs people. The State aims to ensure that at least two million people get employment in the IT sector by 2020.The growth of the IT sector in
Baliga proposed the concept of developing the
KEONICS even today claims that the title of Silicon Valley of India belonged to the city's
campus. Its Electronics City Electronics City concept took off and gave the much needed impetus over other cities. Bangalore
Then came the 1980s when local firms such as Wipro of Azim Premji and Infosys promoted by Narayana and Sudha Murthy, Nandan Nilekani and others set shop in
. These firms along with others concentrated on IT and soon put Bangalore on the international map. Bangalore
Today, the role of Videsh Sanchar Nigam Limited (VSNL), Indian Space Research Organisation (ISRO) and Software Technology Park of India (STPI) in putting
on the world IT map is almost forgotten. Bangalore
Bangalore’s already existing scientific workforce, its name as Science city, the host of public sector units, large number of engineering graduates and salubrious climate, industrious work force and no strong trade unionism set the tone for IT to take over the City and make it into the Silicon Valley of India.
By the way, it was Don Hoefler who in 1971, in a series of articles that he wrote for ELECTRONIC NEWS, a weekly tabloid, first used the phrase SiliconValley to describe the electronics firms mushrooming in
Santa Clara county in the . United State
India, the first IT firm was set up in Bombay in 1967 by Tata Group which partnered Burroughs, Since then, has overtaken all other cities and led the IT sector to contribute to higher GDP. Bangalore
The IT–ITES sector has increased its contribution to
's GDP from 1.2 per cent in 2998 to 7.5 per cent in 2012. According to NASSCOM, the IT–BPO sector in India aggregated revenues of US$100 billion in 2012, where export and domestic revenue stood at US $ 69.1 billion and US $ 31.7 billion respectively, growing by over 9 per cent. India
The major cities in
India that accounted for nearly 90 per cent of this sectors exports are Bangalore, Hyderabad, Chennai, and Mumbai. Delhi
According to Gartnet, the Top Five Indian IT Services Providers are TCS, Infosys, Cognizant, Wipro and HCL and all of them have offices in
. IT firms in Bangalore Bangalore employ about 35 per cent of 's pool of over a million million IT professionals and account for the highest IT-related exports in the country. India
Karnataka's IT exports zoomed nearly 50 per cent to touch Rs 1.3 lakh crore in 2011-12. In the previous year-2010-11- Karnataka had recorded IT exports of Rs 87,000 crore.
Eighty per cent of global IT companies have based their
India operations and R & D centers in Bangalore which is also the fourth largest technology cluster in the world after Silicon Valley, Boston, and . London
With a third of
's software technology park units, the state is the country's largest software technology hub. India ’s 2100 IT companies constitute over 20 per cent of the IT companies in the country. Bangalore
Fifty per cent of the world's SEI CMM Level 5 certified companies are located in
No wonder, apart from occasional speed breakers, the IT sector in
has always been fairly healthy. Bangalore