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Eb31b40f2cf71c3e81584d04ee44408be273e7d511b6134395f9 640 Bangalore

Bangalore, Silicon Valley of India

In the US,  Southern California is known as Silicon Valley as there are many IT giants located in that area. During the reign of Narasimha Rao government in early 1990s, India opened the flood gate to foreign investors and companies to open their operations in India. Big giants like IBM, GE, Accenture, HP and many other US based companies started coming to India and the IT and ITeS industry started booming in India.

Delhi being the political capital of India was the chosen location initially for these companies to set up their offices. However post 9/11, all the companies started looking for an alternative location as their BCP (Business Continuity Process). Mumbai due to the infrastructural costs and complexity could not become the chosen location.

This city in the beginning of twenty first century lured the MNCs to start their operations out of their newly built technology parks. During the reign of the then Chief Minister, S.M Krishna, the government policies were made flexible and lands were made available to the Indian IT majors like Wipro and Infosys at a very lucrative price.

Bangalore photo

Why did Bangalore grow into the Silicon Valley of India?

There are several reasons which helped Bangalore to prosper into the Silicon Valley of India.


The moderate climate captivated the clients and business owners from the US, UK, Australia and other countries and they chose to set up their offices in Bangalore. AOL, IBM, HP, Intel, Cisco, JP Morgan, Genpact, GE, SAP Labs and many other IT and Technology driven companies set up their IT development, testing, services and R & D divisions.

Bangalore is not as cold as Michigan, not as windy as Chicago or not as hot as South Africa or Sri Lanka. Employers from UK who are tired of rainy and gloomy weather in their own city love the sunshine here and chose to open their offices here.

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Availability of employees

Karnataka has more than 200 engineering colleges and there is a huge pool of engineering graduates completing their degrees every year from these colleges. Hence the IT giants found Bangalore to be the ideal location for opening their centres.

Apart from engineering graduates, there are regular graduates and the pool of English speaking students is very high in Bangalore. There are students who complete ITIL, CCNA, CCIE, CCNP and other certifications and enter in this field. In the ITeS industry, even the B.Sc IT and other graduates work to provide technical support, application support and other incident management support.

infosys bangalore photo

Photo by omshivaprakash

The government and infrastructure

All the state governments which came in power since 2000 and the central government is very supportive of the MNCs coming to India as they provide jobs to the Indian youth. The MNCs could easily lease huge office spaces which are required to accommodate thousands of employees working in this industry. The real estate giants like RMZ, Salarpuria, Mantri and many other giants came up with plug and play office spaces which were ideal for these MNCs to start their units.

There were many tech parks built in Bangalore. Bannerghatta Road, ITPL, Electronic city, Outer Ring Road, Airport Road, Manyata Tech park and many other areas were identified ideal to set up these tech parks and were quickly developed. Many SEZ (Special Economic Zones) were declared by the government and the companies saved on huge taxes by developing those areas.

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The Cost Factor

The salary which an Indian engineer draws is almost one tenth of an US engineer. Even if they are sent to the base location for any projects, the costs are much lesser than employing a US citizen.

The infrastructure cost to set up an office in Bangalore, India is much lesser than setting it up in San Francisco, CA or any other major city in the US. The internet connectivity and other technology related infrastructure is very good in Bangalore.

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Indians love studying and they are very good even in innovation and analytics. Most of the MNCs chose to open their Research and Development wings in Bangalore because of the scientific bend of mind of the professionals here. The companies which started in the 90s came up with many analysis of the products and services and helped their clients do better business. In the corporate jargon it is known as ‘’transforming businesses’’ and many Bangalore based professionals helped the clients do that and saved a lot of revenue for the company.

bangalore photoThe cultural amalgamation

Bangalore is truly a cosmopolitan city. Since the year 2000, the population of Bangalore has grown manifolds and people from all across India have come and have settled down here. The environment was very welcoming for the people from other regions and many consider Bangalore as their home after spending a decade here.

The employees from Europe and US have to keep visiting Bangalore for their various project related requirements. Bangalore meets all their living and recreation needs. There are world class five-star hotels, watering holes, theatres, musical shows, national parks in and around Bangalore which gives the visitors ample opportunities to explore the vicinity over the weekends.

This city is extremely warm to expats and many families have settled down in Bangalore for couple of years. Their families have adjusted well to the cosmopolitan culture here and many have continued to stay for a longer duration.

The demography of Bangalore has changed in the last fifteen years after it became the IT Capital or Silicon Valley of India. The real estate, Consumer durables, Banking and Finance, FMCG and many other industries grew as the population of earning professionals grew. Bangalore adds a substantial amount to the GDP of the nation.

Photo courtesy flickr under Creative Commons by Melanie M & Omshivaprakash H L

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