B’luru becomes a magnet for MNCs, startups again

Attracts An Investment Worth $1bn
Traffic can be a night mare at peak hours.Many roads are potholed. Experts warn of an inevitable water crisis. But still companies and people are moving to Bengaluru like never before. Some estimate that an investment of over $1 billion has been proposed in the past 18 months.

The availability of a young, technologically skilled population is driving not just many of the world’s biggest brands but many of India’s tech-based startups to move or expand into Bengaluru. The trend is accelerating as the world gets redefined by new technological phenomena such as smartphones, social media, artificial intelligence, et al.

Bengaluru accounts for more than a third of the over 1,000 global inhouse centres (GICs) -facilities that combine technology development with back-office func tions -of MNCs in India. But the spate of new announcements of GICs over the past 18 months suggests a fresh urgency . Some of the proposed investments are massive.

US oil and gas major Exxon Mobil, one of the world’s biggest companies, is making a $400-500 million (Rs 2,500 crore-Rs 3,150 crore) investment in Bengaluru to establish a technical and business support services centre.

Derivatives marketplace CME Group, which handles 3 billion contracts worth approximately $1 quadrillion (that’s 1 followed by 15 zeros) annually , is said to be setting up a GIC in Bengaluru. JCPenny , the American apparel and home furnishing retailer, L Brands, makers of lingerie brand Victoria’s Secret, and Lowe’s, the USbased home improvement and appliance store chain, have established technology captive centres here recently.

It’s been no different with many domestic startups. Entrepreneurs who started their ventures elsewhere in the country , are making Bengaluru their new home. Others, like Snapdeal, may not have shifted their base, but their big new R&D expansions are in Bengaluru. As Snapdeal says, for the scale of hi-tech talent they now need, there’s no option but to come to Bengaluru.

Source: Times of India

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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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