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Bangalore’s IT revolution – an impact on the social sector

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If one were to ask me about the social cost-benefit the IT sector has had in Bangalore city alone, I would summarize it in just one simple word – “astounding”!

The reasons for this are myriad:

1. Bangalore is known to be the hub in India’s IT revolution – this is no secret. But do people also know the amount of employement this generates? Think about the sectors involved in this – a local TNC (trans-national corporation) or an MNC decides to open shop in Bangalore for about 10000 employees. The first and foremost is deciding the location. They obviously would go in favor of low cost but a high facility/utility environment – needless to say, places like ITPL and Electronics city score high on their location preferences.

Next, they need to choose a real estate dealer to deal with. This, in turn, generates employement for the local real estate agent (assuming the TNC/MNC authorities have no working knowledge of real estate and negotiation etc.)

Next, they finalize on a place, they need to proceed with either purchasing that real estate or procuring that location as a lease. Usually, builders of commercial real estate places only give out super structures and the internal furnishing including AC ducting etc. is left to the IT companies. Think about generating employement for the labourers who would need to work on this – not to mention that the other aspects of putting together an office environment means that Architects, contractors and other officials would be in the picture.

Now, think about the land registration costs – this is no known secret that it generates enough and more for the local civic authorities. You know what I mean.

Now, think about the employees these IT concerns need to hire to get their work going. Its no secret again that companies (esp. those in the IT service business) hire people in 10’s of 1000’s – Infosys announced that they are hiring almost 28000 employees in the upcoming quarter.

TCS is another company that hires people in 10’s of 1000’s. Think about the amount of employement these companies generate because with these 10’s of 1000’s of techies, there also need to be adequate # of support staff such as Human resources, administration and operational staff to manage this kind of a number.

To cut a long story short, IT in Bangalore (or should I say, Bengaluru) is here to stay for the years to come and with it will come employement for all sectors.

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Written by Naveen Athresh

July 15, 2007 at 12:42 pm

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