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Bangalore: The New Silicon Valley

Bangalore:  The New Silicon Valley


With the progression and expansion of the tech field in Bangalore, India it has earned its title of The New Silicon Valley.  Its flourishing outsourcing role with major companies like Infosys Technologies and Wipro, continue to attract global attention with new clients and their employees.  Additionally, in the past year, more tech companies and software programmers have migrated to Bangalore than to the original Silicon Valley.


Bangalore’s success is also good news for its neighbors, Chennai and Hyderabad, both cities that continue to benefit as among the top worldwide destinations for technical and engineering talent.  Interestingly, in a recent LinkedIn survey ranking the top ten destinations for technical talent, Silicon Valley ranked fifth after four Indian cities – including Bangalore who took the number one spot.  Like Silicon Valley, Bangalore is home to some of India’s top innovative and technical talent.  Additionally, Bangalore is the home to several technology startups some of which have moved from Silicon Valley to India.


With labor costs much lower in Bangalore than Silicon Valley, many companies are choosing to move operations.  Another big draw is Bangalore’s pool of recent graduates, many who have an interest and expertise in innovative new technologies.  Back in California, Silicon Valley Bank reports an increase in the number of clients who are seeking startup capital for firms based in Bangalore.  Many are optimistic that Bangalore will overtake Silicon Valley as the number one destination for technology employees, by 2020.


India may have started their technology age by establishing call centers but out of the companies on the Fortune 500 list, 105 of them now have a substantial presence in the country.  Instead of taking on the customer service functions of already established companies, Bangalore is now hosting a new breed of entrepreneurs:  those who are developing their own high-end products.  In 2011, the growth of IT revenue in India had grown from practically nothing in the 1980s, to an astounding $88 billion.    With 44% of new residents in Bangalore those with technical expertise, IT revenue is likely to continue to experience explosive growth.



Unsurprisingly, India continues to have the most graduates in an engineering field, with computer engineering remaining the top choice.  All major information technology companies including Google, Amazon, and Microsoft, has operations based in Bangalore.  The fact that the U.S. economy continues to take a hit from the financial collapse in 2008 can only mean great things for India.  For many, a move back home to India is the only smart answer, especially when technology jobs in the United States are few and far between.


As Bangalore continues to grow, it will obtain what it really needs which are investors and mentors.  As companies and industries continue to experience success and growth investments will become commonplace, and when that happens, Silicon Valley should watch out.