BENGALURU: India’s Silicon ValleyBENGALURU has emerged as the fifth most preferred destination for global multinational companies that are looking to set upinnovation centers and tap technology talent, according to a report by technology consulting and services firm Capgemini .
Over the past five years, a number of Fortune 500 giants have set up camp in Bengaluru, with the city now boasting of the likes ofApple , Visa and Airbus — all of whom have either headquartered their India operations in the city or set up captive technology centres to harness local tech talent.
According to the Capgemini report, Bengaluru has now displaced Tokyo from the fifth spot on the list of most preferred destinations for innovation centres and only the Silicon Valley, London, Paris and Singapore are currently ranked ahead of Bengaluru, which is also home to two of India’s largest software firms Infosys and Wipro BSE 0.43 %.
“The country has seen a significant increase in the number of innovation centres, often centred on Bengaluru, which some have dubbed the ‘Silicon Valley of India’.” It is estimated that $9 billion was invested in startups in India in 2015. In this fertile environment, Airbus and Visa have set up innovation centres in India,” said the report by Capgemini Consulting.
Over the past few years, a number of large Fortune 500 companies such as Target, Walmart, Lowe’s and L Brands, as well as global ‘unicorns’ such as Uber have set up base in Bengaluru.
And more companies are on track to set up tech centres in India. ET reported on March 21 that Alibaba is also looking to set up a tech development centre in India.
“India has been rising in the ranks of favourite destinations to open innovation centres. Our previous research identified eight innovation centres in India in July 2015. India has since seen eight more innovation centres open their doors. Bangalore has been the most favoured city with four new innovation centres,” the report said.
India’s foremost ‘unicorn’ startups such as Flipkart, InMobi and Mu Sigma are also headquartered in Bengaluru.
“Bangalore is home to several billion-dollar Indian startups such as: Flipkart, InMobi and Mu Sigma, and attracts world-class technology talent and investments.
Among the new innovation centres opened here are: Airbus’ BizLab, which intends to bring together startups and Airbus’ internal entrepreneurs; and Visa, whose new technology centre in Bangalore will house 1,000 developers accelerating development of next generation payment solutions,” the report said. Other Indian cities such as Mumbai and New Delhi are also increasingly catching the eye of global corporations eyeing India.
“Global firms are showing interest in other Indian cities as well. For instance, TriMas Corporation — a diversified global manufacturer of engineered and applied products — opened an innovation center in Delhi to focus on driving innovation across its range of packaging solutions, while Puratos, a leading global food ingredient company, launched an innovation centre in Mumbai,” the report said.