Tech Firms Expand Beyond Bengaluru, Hyderabad & Visakhapatnam Emerge as Key IT Destinations!

Rising operational costs and worsening traffic congestion in Bengaluru are prompting IT companies to expand beyond the city, adopting a “hub-and-spoke” model rather than completely relocating. Over the past five years, nearly 629 firms have shifted their registered offices from Karnataka to other states, reflecting a gradual diversification strategy. Companies cite soaring office rents, infrastructure strain, and long commute times as key challenges, pushing them to explore cities where talent availability is improving and costs remain manageable.

Among emerging destinations, Hyderabad has secured the top spot due to its strong infrastructure, government support, and lower operational expenses, with annual IT exports reaching approximately ₹3.6 lakh crore. Meanwhile, Visakhapatnam is rapidly gaining traction as a technology hub, backed by proactive policies and incentives from the Andhra Pradesh government. Other cities like Pune, Chennai, Coimbatore, Kochi, and Ahmedabad are also emerging as competitive IT hubs. Experts believe this shift will lead to a multi-city IT ecosystem across India, reducing dependence on a single metropolitan center.