Bangalore, also known as the Silicon Valley of India, has been a popular destination for foreign subsidiaries to set up their operations in recent years. The city’s favourable business environment, skilled workforce, and infrastructure have made it an attractive destination for foreign companies looking to expand their global presence. In this blog post, we will explore why Bangalore has become a hot destination for foreign subsidiaries to set up.
Here are some data points to support this claim:
Talent Pool: Bangalore has a large pool of talented engineers and tech professionals. According to a report by the National Association of Software and Services Companies (NASSCOM), Bangalore accounts for around 38% of India’s IT workforce, which is around 1.6 million professionals. This vast talent pool ensures that tech companies have access to a diverse and skilled workforce.
Skilled Workforce: Bangalore is home to some of the best educational institutions in India, producing a highly skilled workforce. The city has a large pool of engineers, computer scientists, and other technical professionals who are proficient in English, making it easier for foreign companies to communicate and collaborate with them. This skilled workforce is one of the primary reasons why Bangalore has become a hot destination for technology companies, especially in the IT and software sectors.
Startup Culture: Bangalore has a vibrant startup culture, which has attracted many tech companies. According to a report by CBRE, Bangalore has the highest number of tech startups in India, with over 7,200 registered startups in 2021.
Infrastructure: Bangalore has world-class infrastructure that makes it easier for foreign companies to operate their business. The city has a well-developed transportation network, including an international airport, highways, and railways, making it easier to transport goods and people. Additionally, Bangalore has a robust telecommunications infrastructure, with high-speed internet connectivity, making it easier to communicate with clients and partners around the world.
Government Support: The Karnataka state government has been actively supporting the growth of the tech industry in Bangalore. The government has launched several initiatives, such as the ‘Startup Karnataka’ scheme and the ‘Innovation Authority’ to promote entrepreneurship and innovation in the state.
Favorable Business Environment: Bangalore has a favorable business environment that makes it easier for foreign companies to set up and operate their business. The city’s state government has implemented several policies and initiatives to support businesses and promote economic growth. These policies include tax incentives, streamlined regulations, and a one-stop-shop for business registration. Additionally, Bangalore has a well-established legal system that protects the rights of businesses and investors.
Cost-Effective: Bangalore is a cost-effective destination for tech companies compared to other global tech hubs. According to a report by Colliers, the average office rent in Bangalore is around $4.5 per square foot per month, which is much lower than other tech hubs like San Francisco or New York , making it more affordable for companies to set up their operations in the city.
Quality of Life: Bangalore offers a high quality of life for its residents, making it an attractive destination for foreign companies to set up. The city has a vibrant culture, with a diverse population, and a thriving nightlife. Additionally, Bangalore has excellent healthcare facilities, educational institutions, and recreational opportunities, making it an ideal destination for employees and their families.
In conclusion, Bangalore’s favorable business environment, skilled workforce, infrastructure, cost advantage, and quality of life make it an attractive destination for foreign subsidiaries to set up. The city’s success in the IT and software sectors has helped establish its reputation as a hub for innovation and technology, attracting more and more companies to set up their operations in the city.