India Insists "High-tech" and Develops "Outsourcing"

Relying on innovation and external opportunities, Bangalore of India has developed into a mega-city of millions of people from a town of 100,000 people within just a few years. It leads the rapid development of the entire Indian IT industry, and also it is praised as a model of forming the late-development advantage by high-tech among the third world countries.

Bangalore's success is inseparable from the urban location which is accurate, scientific, and facing to long-term development. The development of the information technology industry is relatively independent; it is undemanding for environment, natural resources and overall situation of national economy. From 1980’s, India has firmly insisted to develop information industry, and its software industry is based on export and outsourcing services, nearly 80% of the software products export per year. Currently, India is the most successful country of developing software export industry.

As Indian software industry is export-oriented, enterprises regard quality as their lives, and pursuit continuously to connect with internationalization in management, they compete with each other to establish a strict quality control system, and try for the technical certification of ISO and CMM (Capability Maturity Model). Till 2001, 59 enterprises have passed SEI-CMM 5 standard in the whole world of which there are 29 Indian enterprises. India is also the country which has got the most software quality certifications in the world. At the same time, India attaches great importance to protect the intellectual property and increases the law enforcement efforts, its software anti-piracy activities have been developed effectively, this has changed the bad impression from European countries and has created a good external environment for software exports.

Indian government attaches great importance to personnel training; it has implemented a series of projects to promote human resources development, such as “Indian Talents Development and Computer Training”, “Computer Talents Development” and others. There are 68,000 computer engineering graduates in Indian per year, but there are 30,000 in America. Indian government subsidized greatly the students majored in software from the key institutions to study in the United States. Till 2000, there are 34,000 professional technical personnel in Indian software industry. India also attracts hardly the companies and social personnel of computer industry from domestic and abroad to carve out in Bangalore, especially attracting the talents, technology and companies from Silicon Valley in US.