Introduction
Bangalore is the capital city of Karnataka. It is one of the most important cities in India. It is well known as the Silicon Valley of India. It is also the IT hub of India. The city is a favourite for foreign investors and MNCs. The city has made sure that all the companies experience a good amount of infrastructural advantages and tax relaxations.
This is why 80% of all the global IT giants have their offices in Bangalore. Bangalore’s economic contribution is a lot. The city boasts a GDP of $110 billion. The city’s GDP makes up over 87% of Karnataka’s total GDP. The Bangalore IT hub contributes the most (34% to 40%) of the total IT exports of India. Bangalore has also been declared as one of the smartest (and most advanced) cities in the world by multiple organisations.
It is one of the top 30 smartest cities in the world in terms of technology and infrastructure. The city is only growing and getting better. Experts predict that it will eventually overtake Silicon Valley. It is on the path to becoming the largest IT cluster in the world, beating the likes of Berlin, Shenzhen, and other IT-centric cities.
Why is Bangalore the IT Hub of India?
Bangalore has been the IT capital of India for a while now. This is due to being the prime choice for foreign direct investments, local firms, MNCs, and startups. Bangalore IT industry has instated India as one of the top players in IT globally because of IT and ITeS revenue. But why exactly is Bangalore is so popular for companies around the world? Let’s take a look.
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Bangalore IT hub area consists of multiple Special Economic Zones and software parks (IT parks). There are over 30 SEZs in Bangalore. It also has dedicated zones for the aerospace and biotechnology industries. Most of these SEZs are built for ITeS and IT companies. This makes it highly desirable to most companies out there. It is easy to build their bases in Bangalore for the companies.
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Bangalore provides round the clock unrestricted power to its SEZs and IT parks. This is to support the operations of these companies. This makes it very easy for companies to move. Company become operational in no time. Bangalore's infrastructure is very advanced. This attracts companies from all over the world. The city has office space to support the company's need. There are plans for making more IT hubs in Bangalore and also near the city.
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The huge advantage companies get out of setting their offices up in Bangalore is the massive amount of skilled manpower. This is useful for MNCs and local giants who wish to set up offices with hundreds of employees. There were over 15,00,000 skilled IT professionals in this city previously. The number is expected to reach 80,00,000 soon. This is a huge amount of human assets that companies can employ and incorporate into their projects.
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This makes it attractive for employers around the world to come to this city looking to set up their offices. A good number of software engineers are willing to relocate to this city. This makes it even easy to get access to all the manpower with skills. Bangalore is more attractive to employers than any other city in the world currently. This is because of the cheaper manpower they can employ in India as compared to cities such as Berlin or other US cities.
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Bangalore is very organised and advanced in a lot of ways. Not only the infrastructure but also due to the massive growth and sustainability it has shown to the world. The city has been declared the most dynamic city in the world by the City Momentum Index.
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The World Economic Forum has also agreed with these kinds of statements about Bangalore more than one time. WEF is positive with future of this city. Especially when it comes to the viability of Bangalore as a city of the future. Bangalore is on the right path with issues that can be solved.
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Companies such as Google, Microsoft, IBM, TCS, Amazon, Wipro, Accenture, Intel, Oracle and SAP, all have their offices set up there. A lot of them have their Indian head office there. There are also many other companies, such as Samsung, Phillips, HCL, Flipkart and CGI, that also motivate other smaller firms and local giants to come to Bangalore.
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Bangalore is the root of the startup culture. It has taken over India in modern times. Most of the startups in this country emerge from this city. Companies such as Zoomcar, Groww, Swiggy, RazorPay, Dunzo, and Oyo are all from Bangalore. There are over 13,000 operational startups in Bangalore. There are more startups emerging from this city than anywhere else in the world.
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There is an good amount of academic institutes and engineering colleges in Bangalore. That make it easier for both employers to get employees and students to get jobs out of college. There are also multiple training institutes for technical skills as well in this city. Working employees can also learn new skills from these institute.
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Bangalore has relaxations on tax and export/import duty fees. Companies that are registered for the special IT and Software Park schemes. Government schemes allow companies to operate effectively without paying heavy taxes. The Government of India and even the State Government provide multiple opportunities for startups and local firms as well when they are setting up shop in Bangalore. There are also heavy relaxations that companies experience when importing hardware.
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