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The Development of Indian Software Industry
The Indian software industry achieved rapid growth in the 1990's because of the increase of exportation to the developed countries under the liberalization policy. In the process of growth, the locations of the Indian software industry have changed and been restructured. This paper attempts to clarify the actual condition of the development and locational dynamics of the Indian software industry. First, in order to confirm the distribution of the industry, the author analyzes the locations of main companies, using the data of Indian Software Directory issued by NASSCOM. Second, some areas where software companies have agglomerated are isolated, and their structural characteristics are examined. The main findings obtained can be summarized as follows: 1) In the process of the rapid growth since 1990, main companies have only been located in a few specific cities. Most of them are established and aggregated in only 6 areas: the Delhi Capital Region (New Delhi, Noida and Gurgaon), Mumbai and Pune, Bangalore, Chennai, Hyderabad, and Calcutta. In the last ten years, the number of companies and employees in the former 4 areas (Delhi Capital Region, Mumbai and Pune, Bangalore and Chennai) has increased more sharply than the other areas: Hyderabad and Calcutta. 2) The companies' engineer ratio in the cities, such as Mumbai and New Delhi, where many software companies aggregated formerly, is lower than the ratio in the cities agglomerated lately, such as Pune, Noida and Gurgaon. This means that many companies in the formerly agglomerated cities have various functions, such as the management or business, on the other hand, many companies in the cities lately aggregated are specialized to produce softwares or service to customers. 3) The export-oriented companies are concentrated in the southern part of India. However, in the recent years, the number of them has increased also in the new agglomerated cities.