Bangalore is located in South India and home to 8.5 million people. Bangalore is now known as one of the most important IT centers as well as "Silicon Valley of India". A new international airport (Bengaluru International Airport) has opened in 2008 and it rapidly has become India's fourth busiest airport. Bangalore is connected to the Indian national railways systems and has extensive bus network, road network and 42 km transit system, therefore, Bangalore is now India's most important center for high technology industries. However, Bangalore faces some problems. There will be a competition with cheaper countries such as the Philippines. Also, the possibility of terrorism risks increases and skilled workers will find jobs in other countries or companies with higher income. Lastly, Bangalore has a difficulty in paying increased costs in terms of rent and electricity.
I found the rapid economic change after building a new airport interesting. Bangalore was known as the city with poor condition of infrastructures and buildings. However, Bangalore becomes one of the outsourcing capitals in the world. This is because, unlike the most developed countries, less developed countries possess low wages and unlimited work hours.
Aside from the fact that Bangalore becomes the outsourcing capital of the world, what are some limitations that Bangalore encounters?
After I learned about outsourcing, I also found the fact that Bangalore is one of the outsourcing capitals very interesting. For the question you mentioned, I think Bangalore is now facing some problems such as increasing demand for increased wages from its employees and competition from cheaper locations (Vietnam and the Philippines).
ReplyDeleteExcellent point Na Li. I would agree with you completely. They will definitely see their wages rise which would cause them to be less economically viable in the future for TNCs looking to outsource. I also know that the power grid in India is VERY unreliable and so maybe Bangalore could run in to issues with energy security while their population continues to grow.
ReplyDeleteIt is interesting to learn about the different examples of different countries. That photo listed several reasons helped me to clearly understand how India could success. and as I wrote about Philippines examples, I could even find lots of similar reasons!! For the question below, I guess it is important not only for India but also for several countries to contrast and notice on the pros and cons for their further development and improvements!!
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