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Simeon Mitropolitski

Simeon Mitropolitski is a Canadian analyst, of Bulgarian descent, and former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with the hot political and economic topics, both Bulgarian and international. ("A Royal Solution." World Press Review. June 1997, provides English versions).

He was part of the first group of Bulgarian intellectuals that began the opposition movement that finally put an end to the communist regime in the country, and in 1996-1997 participated in the international monitors' teams during the elections in several Balkan countries - Romania, Albania and Bulgaria. In 1999 he was among the few Bulgarian journalists that supported NATO military operation against Yugoslavia. In 2002 Simeon and his family emigrated from Bulgaria to Canada where they now live in Montreal, Quebec.

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9 October 2004

Bangalore: Beneficiary of Outsourcing

© 2004, IRED.Com, Inc., Simeon Mitropolitski

There is no other Asian city to be more quoted nowadays than Bangalore. The reason is simple: it has become the focal point of the process called business outsourcing, attracting thousands of jobs from richest countries in some of the prestigious sectors such as the IT and the biotechnology. No doubt this invasion of the modern world and technologies has completely overcome the traditional way of life in this Indian megapolis, once nicknamed the City Garden and Pensioners' paradise. The quickly and almost unprecedented for Asia population growth without some adequate infrastructure developments would soon dash out the business attractiveness of the city and could make the foreign and local investors look elsewhere for business opportunities.

What has begun in America some years ago as an idea to find workers for the existing and urgent IT projects turned ultimately to be an excellent way of bringing down the production costs in long term. Until the immigration authorities in the developed countries discussed the number of Asians to be allowed to work and at which terms, the private companies took the problem in their hands and started outsourcing in mass. Bangalore in southern India became one of the chief beneficiaries of this process. During the last years the city has completely changed its allure, becoming hi-tech business and industrial center instead of traditional place for wealthy Indians to retire and relax.

The Western shock to see jobs fleeing to Bangalore is nothing compared to the shock produced among this traditional society, for which running water and electricity with no outages are still luxury. The intermingling of so many people with university degrees among so many illiterate is something the western public have no experience. The time machine in Bangalore is omnipresent. You leave your 21st century office and suddenly you find yourself amidst dusty streets with people you dare not touch. You get thousands of dollars per month but you can't get to work and back home but by being "delivered" by company's private transport. You live in at least two completely different worlds and times. What is appropriate and necessary for the one is totally unacceptable and exotic to the other.

Many companies lured by the cheaper and high-quality work force already see some drawbacks of their adventure. Any additional investor brings about new problems instead of helping solving the older ones. More investors mean more workers with western life style, which in turn leads to less space for the growing army of cars and buses. To invest in Bangalore means not only to hire people but also to address several issues you aren't accustomed home. You must secure constant water supply and interrupted electricity for your business, you must bring your personnel to work and back home. So it isn't surprising that some investors have threatened to pull out if substantial infrastructure improvements aren't made. Will the outsourcing center Bangalore be outsourced? That depends entirely on the local authorities. You can't live perpetually in two worlds and times. One of them must go.


Bangalore city profile:
  • Population: 4.5 million, incl. 51% newcomers from other Indian states and foreigners (Greater Bangalore 6 million);
  • Population density: 3,000/sq.km;
  • Population growth rate: 1.72% per year;
  • Literacy rate: 67%;
  • Area: 366 sq.km;
  • Altitude: 920 metres;
  • Temperatures: As low as 15 C during winter; as high as 37 C during summer;
  • IT technologies: Leading center in India with more than 100 MNC;
  • Biotechnologies: Leading center in India with almost 100 companies.
(Source: wordIQ Encyclopedia - 2004)

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See also the directory of companies providing real estate services in, and general real estate information of India.

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