The threat of terrorism is not new to India. Both New Delhi and Mumbai — India’s two biggest cities have faced terrorist attacks at different times, much before the country became a preferred offshoring destination. While in the initial days of business process outsourcing to India, proximity to Pakistan was a small consideration while choosing it as a location, it never was a top-of-the-mind risk that was associated with India.
So why is the outsourcing community discussing this again? What is new?
“What is new is that now, the terrorist groups have changed their target,” says Ashish Sonal, Country Manager- India, Hill & Associates, a risk-management consulting firm.
Earlier, the major targets of terrorist attacks were either the government establishments or public places. The objective was mostly to cause panic among common people and send strong messages to the government. That had its impact. But the militant outfits today understand that India’s globally growing clout is primarily due to its rise as an economic superpower. And the epicentre of that economic growth is India’s knowledge-intensive industries such as IT, business offshoring and biotech.
This time around, the militants’ strategy is to hit where it hurts most. While this new strategy is reinforced by last year’s attack at a scientists’ convention at Bangalore, followed by a similar attack in Hyderabad, the seizure of some crucial diaries from people arrested in connection with the attack confirms this. According to the police, a special mission of some militants was planned to survey the IT and call-center companies to zero in on potential ones, and ultimately attack the chosen targets.
Has that changed India’s risk profile as a whole? “The overall risk profile has not gone up, but the industry is now a target,” says Sonal, quickly adding that it is far from being alarmist.
South: The New Target
Most of India’s high technology and knowledge-intensive businesses are located in South-Indian cities such as Bangalore, Chennai and Hyderabad. Some newer locations such as Kochi are also emerging.
This part of India had been largely insulated from terror attacks. With the new militant strategy, they are likely to be major targets. Over the last couple of years, Intelligence agencies have continually sent warning signals of militant groups making inroads into the south, setting up cells and recruiting sympathisers. According to analysts, Bangalore and the rival tech centres of Hyderabad and Chennai are prime targets.
Bangalore, the so called tech-capital of the world, a city of 6.5 million people, is singularly home to more than 1,500 technology and back-office firms — among them dozens of global giants such as IBM, HP, Intel and Motorola. HP employs more people in Bangalore than in any other city in the world. Several Indian defence, space and scientific research institutions are also based in Bangalore.
It has been analysed that the terrorist strategy stems from three reasons. First is the potential impact. By attacking the technology industry, they will not just send a message to the Indian government, but also to potential international investors that India many not be the safest place to be in. If they are successful in conveying that message, they would give India a far bigger blow than killing a few policemen in a camp.
Second, many of the IT companies in India either serve the American companies or are subsidiaries of American companies. Thus, the dual purpose of terrorising India and sending a signal to America — by far the biggest perceived enemy of the terrorists who also target India — will be achieved.
And finally, the ease of carrying out the attacks is far easier in these locations, as they are not as well protected as the military and police establishments.
