New entrepreneurs here are, however, focused on creating and licensing intellectual property, and they have not gone unnoticed by multinational companies. Intel, for instance, has invested in Sasken Communication Technologies Ltd., and in early 1999 acquired Santa Clara-based Thinkit Technologies Inc and its Bangalore-based subsidiary, Software & Silicon Systems Pvt Ltd.
Even before the multinational companies discovered Bangalore's potential as a design and development location, Bangalore was already a key location in India for the electronics industry, primarily because the Indian government located a number of government-owned electronics companies and defense research institutions in the city. Besides information technology and communications companies, Bangalore has a large number of manufacturing companies making automobile components, electronic connectors, and a variety of precision engineering products.
But the city did not anticipate the technology boom, and the attendant infrastructure bottlenecks, such as shortage of power and housing in the city. With an area of 366 square kilometers, Bangalore now has a population of 5.2 million, which continues to grow.
New business opportunities, such as the outsourcing by US and European vendors of Internet-based customer relationship management (e-CRM) to Indian companies, are also extending the benefits of globalization to plain college graduates who until recently were left untouched by the technology boom in the city.