Starting a software company in India
Bangalore with more than 600 software companies operating and it is not a new success story to prove. In Bangalore most of the companies are owned by Indian and few of them are owned by non-resident Indians.
The government of Karnataka has encouraged the involvement of foreign investment to create hi-tech companies. The government has created some tax free incentives to this industry. The potential of this industry is that the cost of involved in skilled labor in India is around 25% to 50% as compared to western countries.
The drawback of the industry is that in India the problem is with erratic power, government bureaucracy, poor internet connection. But the low labor cost covers up all the drawbacks involved in the software industry.