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Bangalore Blasts Threaten Indian Outsourcing

by: Larry Dignan July 25, 2008 | about stocks: INFY / INTC / QCOM    

Larry Dignan

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A series of bombs have exploded in Bangalore and companies that have technology operations in India are likely to need increased security precautions following what appears to be a terrorist attack.

According to various reports from Reuters and Rediff.com, nine bomb blasts have rattled Bangalore, which hosts offices of some of the technology industry’s biggest players–Intel (INTC), Qualcomm (QCOM) and Infosys (INFY). Sacchin Uppal has been updating and aggregating information from local press and blogs and Summize is handy too.

According to Rediff:

Low intensity blasts in a span of one hour in six different places rocked the IT capital of India on Friday afternoon in which two people died and several others were injured. While the first seven blasts took place between 1.30-2.30 pm, the eighth blast took place at Hosaguddahalli, near Gopalan Mall, on Mysore road at around 5.30 pm and the ninth blast took place near the R V Engineering College on Mysore Road at 6.30 pm. The Bengaluru police have termed it as an act of terror.

Om Malik notes that these attacks are likely to reverberate through Silicon Valley. Indeed, beefed up security procedures are likely to follow and any company with operations offshore will have to revisit business continuity plans.
While the details are sparse at the moment, it’s safe to say this attack was designed to deliver an economic blow. IT is the lifeblood of India and offshore outsourcing companies have been turning cautious. These blasts aren’t going to help matters.

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This article has 10 comments:

  •  
    Jul 25 03:41 PM
    Blasts like this happen with amazing regularity in India, thanks to the generosity of a neighboring country. Things come back to normal in a day or two, even if there are massive casualties. Most of the blasts happen in public places and are designed to scare people, rather than damage buildings or infrastructure. In this particular case, the loss of life thankfully was minimal compared to the past.

    BTW though IT seems to get a lot of headlines in the US, it is certainly not the life-blood of India.
    Reply
  •  
    Jul 25 03:55 PM
    Aw c'mon now - don't panic on hearing some bits and pieces. None of this stuff was even CLOSE to the IT corridor in Bangalore and even where the "bombs" were placed, there wasn't too much traffic . What was used was gelatin sticks - commonly used by quarrying miners, some of whom don't like the new government that's in a few months ago. None of the blasts were big enough to even cause more than a small dent in a car - the only unfortunate victim was hit by external shrapnel.

    Not to say that this isn't an act of terror - oh it was fully intended to terrorise - and we will prevail over the perpetrators. But it's ridiculous that people all over the world get taken for a ride, including our own silly media.

    After 9/11 did individual companies beef up their security? Not really. America as a nation did. And this time India as a nation will be up to the task - so that every little company doesn't have to go nuts. Yes continuity is an issue and as far as I know terrorism is the last on the list of potential issues for continuity, most common of them being submarine cable breaks, power outages and time zone turnarounds.

    I may not subscribe to the great outsourcing story India has, but to say that companies must be worried now, after this incident, is way over the line. By saying so you are simply giving in to terrorism. India has prevailed and it will, again.

    Sorry but there are times to be worried about terrorism. This is not one of them.
    Reply
  •  
    Jul 25 04:11 PM
    Steady on there chief, IT is hardly the lifeblood of India, that would be agriculture, though IT represents the fastest growing sector possibly. And minor bombings like these are hardly new. These kinds of Pakistani engineered annoyances are merely designed to rattle a neighbor who's prospects for the future are far brighter, and should be dismissed accordingly.
    Reply
  •  
    Jul 25 04:30 PM
    I'm a Hindu like the other 2 who commented above. The list below summarizes 2 things:
    www.rediff.com/news/20...

    * There appear to be quite a few acts of terror in India just over the last 3 years, and that will strain the fabric of economic prosperity due to IT and outsourcing (if it hasn't already). I am not sure one can be blase anymore about the impact of this most recent one.

    * It's tempting to blame Islamic extremists for everything but 30-40% of the events in the list above appear to target Muslims (though I do agree that most of the others appear to target Hindus).
    Reply
  •  
    Jul 25 06:16 PM
    Nine bombs and only two people killed? These guys are the worst terrorists ever. Epic fail.
    Reply
  •  
    Jul 26 11:54 AM
    Like other posters say,IT is NOT the lifeblood of India. Agriculture is.
    Reply
  •  
    Jul 26 02:46 PM
    everybody has an agenda.its nothing-only one person killed. bad bombers.what a sad ridiculous world.
    Reply
  •  
    Jul 26 04:05 PM
    I am not an Indian, but travel to Bangalore regularly. I work in the software sector. IT is certainly not the lifeblood of India, but is does have increasing importance as an important export.

    Given the scale of India I doubt very much that the recent bombings will have any effect on the Indian IT industry. Of course for a few days they'll be all over 'The Times of India' and The Hindu' newspapers, but then the events will fade into the background.

    The fear will be more acute in Sillicon (sillycon) Valley where everyone fears everything: the water, the air, the food, the pesticides, global warming, the US government, traffic accidents, obesity, salt, sugar, and, of course, bombs.

    In India people just smile and go on with their lives free of such neuroses. The many thousands of programmers and business process outsource workers will cheerfully arrive for work the next day whatever happens. The Indian managers will reassure Western companies it will be business as usual. And they'll be right.
    Reply
  •  
    Jul 26 09:28 PM
    just how many people killed will it take to wipe the smile off the neuroses free indian people?
    Reply
  •  
    Jul 26 10:32 PM
    Even if thousands are killed, life moves on in India with 1 billion to spare. But if one POLITICIAN IS killed the things come to action.Of course these bomb blasts happened next to the place i purchased the vegetables on that day.Also i purchased tickets at forum mall for Monday morning show(cheaper by half) and i am not worried about bomb but about whether they will cancel the shows!!!You see i want to see the new girl Genelia!!
    The terrorists have targetted BJP ruled states like Rajasthan(jaipur),Karn... and Gujerat(ahmedabad). May be they are indirectly implying something.But it is only going to consolidate Hindu votes for BJP as we have one of the worst Home minister at the Centre who just functions like a bureaucrat without any imagination.
    Reply
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