Boom or Bust in Bangalore
Filed in archive Believe It or Not on August 18, 2004
Source: news.bbc.co.uk
Anyone that has followed the development of the outsourcing industry in India has heard of Bangalore. Wipro and Infosys both have significant office space in the city.
Some even refer to Bangalore as the 'Silicon Valley India'.
However, the Inquirer reports that times might be turning:
Representatives from India's biggest outsourcing companies say fear they will lose customers because of the city's poor infrastructure, irregular power supply and increasing taxes. Already, according to the The Times of India, Infosys and Wipro have threatened to take their business elsewhere unless the local government pulls its finger to sort out the problem.
... and if that wasn't bad enough, the cost of doing business in this city continues to increase:
IT companies in Bangalore have seen their rents increase and local taxes skyrocket from five to 12 percent, making the cost of setting up shop there too high.
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