STPI's role was more of an entrepreneurial genre working directly with software companies like a corporate. STPI was more of a service provider that could be leveraged by software companies.
Therein emerged three important factors that gave the necessary impetus to the concept. These were the newness of the business model, Internet infrastructure facilities and the government interface; all these brought a positive response from industry, especially the SME sector, which needed this support for their business to grow.
In 1990, three Software Technology Parks were established as separate autonomous societies at Bhubaneswar, Bengaluru and Pune, which were later merged in June 1991 into a single autonomous society as Software Technology Parks of India, and in quick succession STPIs at Noida, Gandhinagar, Hyderabad and Thiruvananthapuram were established. All STPIs were equipped with dedicated earth station equipment for providing Data Communication links.
The erstwhile Department of Electronics, Govt. of India with the support of World Bank had carried out a study on the opportunities presented by the Global IT Industry. This study identified the factors that are very essential for the growth of the Software Industry and also compared the potential of the countries competing in the Global Market. Some of the factors which needed improvement were clearly identified from the study and STPI focused in improving those factors.
International Communication was one such factor which needed much attention and India was factored -2 as against +8 to Ireland. This was one of the primary reasons why STPI took up the responsibility of providing the International Data Communication facilities exclusively for the Software Export Industry. Although the intention was not to become an International Carrier, but because of the better quality of service provided by STPI and with a high rate of acceptance from the Industry, STPI's International Data Communication Services have grown much beyond anybody's imagination. STPI truly emerged as an unconventional International carrier within a short span of time and developed relationships with 26 International carrier companies worldwide.
The success of STPI was not limited to the capital cities alone with STPI spreading it wings to secondary cities in across states and is now spread to as many as 62 locations all over India.