A Publication of the MacMillan Center
Search Site | Search YG Stories
Subscribe to our Newsletter:

About Globalization
History of Globalization

English |


Special Reports
Related Websites
Selected Translations
History of Globalization
Globalization of Food

The Long Revolution: The Birth and Growth of India's IT Industry
The Long Revolution: The Birth and Growth of India's IT Industry
Dinesh C. Sharma
HarperCollins Publishers, India , 2008

Chapter 7: Big Boys, Garage Start-ups and Software Codes Pages 296 to 302

By the mid-1980s, word had spread that India had a good talent pool and it came much cheaper. Besides mainframe and minicomputer vendors who were using Indian software engineers extensively, partners American OEM software vendors too began working with Indian firms to get products developed cheaply for thier markets. Another new segment opened up when a large software customer decided to set up a fully-owned subsidiary to develop software for internal use. This was CitiBank, which had worked with several Indian software firms earlier. Apparently, the bank had been toying with the idea of setting up a software wing since 1979 but did not due to the difficult political and economic environment. (54) The liberal policy measures unveiled post-1980 gave an impetus to the move.

Citibank set up a software unit at SEEPZ in 1984 with capital expenditure of Rs 2 crore for 'export of software for the computerization requirements of Citibank worldwide'. Paul P. Glaser, Senior Vice President hoped that the unit would be able to develop a large chunk of the $ 250 million worth software that the bank bought every year for its global operations. (55) The bank also expanded its 'City Cash Manager Electronic Banking' service, which had connected 17 Indian banks by terminals to their accounts in New York, London and...