On Infy’s expansion plans in Bangalore..

In the last few years when Infosys hasn’t been able to procure additional land and expand in Bangalore, they have done a good job in moving to other cities and expand their strength in other tier one and tier two cities. But somehow their wish to grow up in Bangalore has remained.

Once in three months when they announce their quarterly results, they necessarily make some noise about government not giving them enough land to expand in Bangalore, and continue to threaten that they will grow additional capacity out of Bangalore. Vijaya Karnataka reports that Mohandas Pai has repeated the same story this time too.

What I find it difficult to understand is why they are so keen to expand further in Bangalore. We have a non-supporting government, and its lethargy has ensured that the infrastructure has crumbled completely. City’s roads and other infrastructure are simply failing to hold its growing population, and it is in no shape to add much more people. On the other hand, cities like Chennai and Hyderabad have enough room to invite more business and tier to cities(like Jaipur, Cochin, Mangalore) are already becoming attractive and inexpensive places to expand IT business. it is time the IT companies, especially bigger ones, stop looking to setup or expand in Bangalore and let other cities enjoy the kind of wealth in-flow that Bangalore has seen in the last decade. This will also create some room in Bangalore and help its infrastructure to stabilize.

5 Comments so far

  1. Briju Prasad (unregistered) on January 16th, 2007 @ 12:41 am

    Rightly said Arun,the need of the hour for our Bangalore is to sustain what we already have in a just way.
    May be we should look into examples from other countries like in London(Docklands)where you will find most of the Major IT/Banking players but now they are planning to expand to other places like Coventry which is about 90 mins from London and hence giving some space for the already stretched resources in London!
    Satellite IT towns adjacent to big cities(like Bangalore)is not really a solution because people would have to travel across the city which can congest the city again?
    By companies going to smaller towns can infact improve their economy?
    This is just my view i am not sure how economists view this,would be interesting to know?
    cheers


  2. karthik (unregistered) on January 16th, 2007 @ 8:32 am

    If they are really unhappy with non availabality of land in Blr why not expand in Mysore??? Why is Infy thinking of expanding ouside the state of Karnataka when it was karnataka Govt which encouraged infy to grow by providing land/electricity/water in subsidised rate when other state govts were not even ready to acknowledge the potential of Infy. Above all Govts should not sell land it has to lease them over a period of 150Years so that the companies dont encash them as asset ( remember bombay mills ) if the govt is bent upon selling the land then there has to be some kind of lease period as in case of BDA sites.


  3. Arun (unregistered) on January 16th, 2007 @ 11:18 am

    Infy is already in Mysore and growing its strenght there.

    Call me selfish, but I really wish Mysore retains its tranquil, quiet atmosphere and does not eventually go the Bangalore way(The process has already begun, land rates have gone up and city is expanding beyond its original boundary). It is our heritage city and I wish it stays that way.


  4. indore_also (unregistered) on January 16th, 2007 @ 12:41 pm

    Indore is also in the list of Tier-2 cities which is missing the mention in your blog, hope to get more and more companies showing expansion plans is these cities,


  5. Prashanth (unregistered) on January 17th, 2007 @ 8:06 pm

    Yes, we have problems with Infrastructure, Govt among others. But the fact remains that if a Company wanted to urgently hire say 50 Highly Skilled personell who have domain expertise of a certain area / Software, nothing beats Bangalore.

    Its not that Growth should be stopped to ensure that Bangalore plays catch up. Its just that the Govt is yet to make up its mind regarding implementation of major projects which is holding Bangalore back.

    Cheers



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