Strike Shuts Down Outsourcing In IndiaStrike Shuts Down Outsourcing In India

Civil unrest once again has shut down Bangalore's tech industry. IBM, Infosys, Wipro, and hundreds more outsourcing and technology companies didn't open Bangalore facilities Monday due to a labor strike over a court decision on water distribution from a nearby river.

The protest stemmed from a long-running struggle over precious water between the state of Karnataka, of which Bangalore is the capital, and the state of Tamil Nadu.

Businesses and schools were ordered closed and police patrolled the streets, according to reports published from India. Activists were arrested for trying to block trains, and set motorcycles and scooters on fire in the neighboring city of Mysore.

Last month, many Bangalore businesses closed due to riots between Muslims and Hindus. And in October, Tata Consultancy Services, Wipro, and others closed Bangalore offices and sent staff home due to a public sector strike related to a border dispute. Outsourcers shifted time-critical work to backup centers in other cities and planned Saturday shifts to make up for lost time.

Bangalore is often compared with the U.S.'s Silicon Valley. The recent spate of civil unrest and business closures, however, are a reminder that the region's tech industry isn't exempt from the turmoil and complex socioeconomic issues facing the rapidly developing country.

Violence and safety concerns haven't stemmed just from protest. Last year, Indian authorities arrested a suspected member of a Kashmiri separatist group who was plotting attacks on major Bangalore outsourcing companies. The man reportedly carried an assault rifle, 300 rounds of ammunition, and a map marking the location of headquarters for outsourcing company Infosys Technologies, according to newspapers in India.

Because of its prominence as a national source of revenue, India's outsourcing sector is becoming a favorite target of dissident terrorist groups, including those seeking Kashmir's secession from the country.

In 2005, members of the Lashkar-e-Taiba terrorist group were found with plans targeting IT companies in Bangalore.

Additional tech and outsourcing companies with facilities in Bangalore include Accenture, Amazon, AMD, Bearing Point, CapGemini, Cognizant, Dell, Google, Intel, Microsoft, Oracle, SAP, Sun, and Yahoo.