Abstract
Global crisis - regional winners? Development of IT outsourcing to less developed countries and the Indian example of Bangalore. The recent global crisis in information technology (IT) industries evokes questions how dependent IT agglomerations in less developed countries get affected. Before, leading companies of the industrialised world increasingly outsourced low value adding IT work to locations that offer low cost qualified labour. This opened development opportunities, for instance, to regions in Asia, which might now particularly suffer from the recession. Which impact has the recent IT downturn on these localities, and which (regional) factors determine whether it is negative or positive? It can be shown that regionally embedded processes of learning and collaboration, in connection with cost reductions in the industry, form the basis of Bangalore’s ability to gain from the crisis.
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