Bangalore Inc.

A link between Bangalore and the world, an agency that provides professional services to companies in Japan and elsewhere—that's Bangalore Incorporate—an idea born of a recent visit by Japanese management guru Kenichi Ohmae to the Silicon City. The concept of a single-window, single-city agency grew out of Ohmae's conviction that Bangalore's corporate sector has the talent, skill, experience and brain power to handle projects and services for Japanese companies. The pay-offs: business for Bangalore, and a cost-effective solution for Ohmae's clientele in Japan.

Ohmae's Heisei Research Institute in Tokyo has a client base of over 300 companies, all of whom can offer substantial business to Bangalore Inc. The areas that Ohmae has already identified for potential business are hardware assignments, software development, research and development, computer repair and maintenance, backroom services, headhunting and engineering design.

Bangalore Inc. is Ohmae's brainchild, but its creation is the responsibility of one of India's leading business associations, the Confederation of Indian Industry (CII). Ohmae approached the CII a couple of months ago with his suggestions. According to S. Ananthanarayanan of Amco Batteries, CII's deputy chairman for the southern region, Ohmae was highly impressed with Bangalore's talent pool. "He told us that the city has the potential to meet his clientele's requirements entirely," says Ananthanarayanan, who heads the task-force working on the Bangalore Inc. concept. "Bangalore has the potential to offer services across the world," adds H.R. Gupta of Widia (India) Ltd, CII's chairman in Karnataka.

The project envisages the CII as a facilitator or frontman through which Japanese companies can interface with Indian companies. The CII will gather together interested companies who can provide the services that Ohmae's clients are interested in. "Quality and integrity are important. That is what the CII will have to guarantee," says Ananthanarayanan who feels that the certification and validation of companies on Bangalore Inc.'s roster will be the main task before the confederation. 

"After that, our job will be to play matchmaker. Depending on what the Japanese company requires, we will parcel out the work to the appropriate local company," says Ananthanarayanan. What is significant is that Ohmae and the CII are not looking at transnationals or market leaders. For the service areas identified, they are targeting small firms and entrepreneurial outfits which can provide quick, cheap and efficient solutions. "We have to locate such companies," says Gupta.

The proposed agency will be funded by the registration and service charges. And when the agency does take off, it will be with a permanent staff abroad. "It could be a torrent or it could be a trickle," says Ananthana-rayan about the volume of business expected from Japan. Gupta is more optimistic, as Ohmae's clients are worth over a trillion dollars in turnover. In back-room services alone, it hopes to make a killing. A three-and-a-half hour time difference would make it viable for Japanese companies to offload their requirements on their Indian counterparts, who would work on the problem and transmit the solutions the next day.

With so much going for it, the CII has decided to take the Bangalore Inc. concept further. An action plan has been drawn up defining its role as a consulting organisation which can help structure joint ventures and alliances, or undertake research and analysis for overseas clients, or even assist in acquisitions and investments in India. Japanese companies who need any preliminary investigation into the Indian market would be able to approach Bangalore Inc. as a consulting agency. It will also act as a direct agent for selling and marketing the products of Japanese companies.

On the cards is assistance to the Indian diplomatic mission in Japan through the CII's network and databases to handle business queries, a free trade zone catering to Japanese requirements and a Bangalore Incorporate Park, combining office space and production facilities with residential and recreational facilities in one location. Though the CII hopes Japan will fund and establish Bangalore Inc., Exim Bank has also been mooted as a funding partner.

The next eight months will show whether the CII's vision for Bangalore will come true. As Gupta warns, "If Bangalore won't do it, Ohmae will find another city—probably Hyderabad—which is willing." And that would be a loss of tremendous opportunity for the Garden City.