Do you think Bangalore is the only silicon valley in India or are there others in the race too? Well, the Indian IT sector is a global powerhouse today making a high-quality impact that’s unmatched. As per The Global Services Location Index (GSLI) of 2019, India is the top offshoring location for companies across the world. What's more interesting is that it is especially focused on web development services.
The IT Industry makes up for 8% of India’s GDP in 2020. However, the inclusive engineering education system of India gives birth to millions of highly skilled engineers every year. With this comprehensive system & the entire industry thriving globally at this rate, it does not seem impossible to give rise to other silicon valleys of Asia.
To power the intention to transform the country into something big, India’s IT service industry currently stands at $177 billion with exports totaling $136 billion. Besides, the industry employs around 4.1 million people across India. The union cabinet aspires to capitalize on the strength of India’s IT industry by approving The National Software Product Policy 2019 and transforming the country into a software product nation.
Read on to find out how the emergence of Top IT Companies & Startups in India has brought a wave of high-quality software solutions to the world.
Table of Contents
How Bangalore Evolved As The Silicon Valley Of India
Bangalore is widely known as ‘The Silicon Valley of India’ for reasons associated with the contribution of the city in making it a hub for technological companies. The nickname is given to the city because it gives shelter to about 35% of the IT population of the country. Not to drop bombs, but that’s 2.5 million professionals, we’re taking into accountability.
With the establishment of ‘The Electronic City’ on 332 acres of land, emerged The Top IT companies of the city. In 1978, Karnataka State Electronics Development Corporation (KEONICS) laid the foundation of this iconic project. Later, the very project became the landmark for Indian global IT companies like Infosys, HP, Wipro, Tata, HCL, Tech Mahindra, and others.
Under The New Computer & Software Policies (1984, 1986 respectively), the hardware & software’ imports & exports in India were liberalized in 1984. As a result, today’s tech giants came to Bangalore then to hire professionals and seek their expertise to power the revolution of India’s IT industry.
Pool Of Talent
Bangalore’s ecosystem constitutes more than 100 engineering colleges in the city. Additionally, some of the most preeminent institutions like IIM-B & IIIT-G are also part of the base. With nearly 1 million developers in the city, the young population of digital modifiers is extremely passionate about making a global impact & rendering support to the industrial growth inside & outside the country.
Meanwhile, the country was going through some major transformations critical to creating a quintessential base of highly skilled manpower at lower costs. In collaboration with the American companies, Indian software companies started benefiting from the revolutionary technological systems.
As a cutting edge in the market, an offshore relationship was nurtured between the two sides. The most unique factor of the entire arrangement was the low operational costs & highly skilled manpower that were rightly capitalized by the offshore countries abroad.
The R&D Hub
Till now Bangalore remains the center of India’s high-tech industry but we’ll tell you something different today. For sure, the pillars behind such entailed IT innovations lie in the roots of India. And, companies like Microsoft, IBM, Google, Walmart, Adobe, & Amazon with an ongoing righteous circle of growth established their R&D in Bangalore in the following years -
Microsoft - 2005
IBM - 1998
Google - 2003
Walmart - 2012
Adobe - 2017
The total value of R&D conducted in India can be evaluated at around $40 billion. With such high-rise technological innovations around the country, companies like Paytm, Tata Motors, Mercedes Benz, Dell EMC are rushing the race via establishing their R&D centers in Pune.
In short, India is an R&D hub for MNCs. With the emergence of Global Capability Centers (GGCs), the country holds unmatched potential by at least employing over 1 million people at these centers. These technically qualified individuals set up the basis for innovations, global impact, offshoring, outsourcing, and others.
The Emergence Of Top IT Companies & Startups in India
With India being the global destination for top software services talent, it is on its way to surge the establishment of more Silicon Valleys in India. The Indian IT sector is growing rapidly and after the recognition of software exports in 1984, it kick-started the growth in the global market. The other factors that promote such global growth are as follows -
Uninterrupted Innovations
Favorable Business Environment
Highly Skilled Professionals
Sustainable Urban Infrastructure
Comprehensive Education System
Entrepreneurial Competency
Low Operational Costs
Low-Priced Custom Software
Top IT Companies In India
The IT developing sector with a wide range of opportunities has created the maximum number of jobs in the country. By investing here, you can open doors to brilliant technological creations for low costs. Having said that, here’s a list of Top IT companies in India making a global impact with their engineering solutions & services.
Tata Consultancy Services (TCS)
Infosys
HCL Technologies
Wipro Limited
Redington India Ltd
Top Startups In India
India is now a club of 81 unicorns with their value constantly increasing. The sudden flow of IPOs had made the year 2021 more profitable for these startups. Some of these startups have offered remunerating stock options to sustain & generate profits in the market. With this skyrocketing valuation worth billions, the country’s young population aspires to set off the next unicorns very soon.
After US & China, India has emerged as the 3rd largest startup ecosystem in the world. With more than 15,000 start-ups established in 2020 alone, the rate of investments in the startup sector is constantly increasing. The new-age professionals are leveraging the increased digital adoption across different sectors. As per The National Investment Promotion & Facilitation Agency, the ecosystem of Indian startups has witnessed the following growth in a period of 6 years (2015-2021-
9 Times The Number Of Investors
7 Times The Total Of Incubators
7 Times The Overall Funding Of Startups
Race To Be The Upcoming Silicon Valley Of India
India is a fast-growing economy with business processes aimed to seek investments towards the enhancement of all sectors. In the race to be The Upcoming Silicon Valley Of India, the cities mentioned below have a stronghold over education, entrepreneurship, infrastructure & a huge pool of talent.
In the battle to recognize & accept the next silicon valley of India, you need to get hold of the right trick to identify the unmatched potential the city has to offer you. When it comes to growth & building an offshore workforce that’s right for your business, eyeing a solution that’s high-quality & cost-friendly must be your goal. So, let’s drive in straight & understand what’s best for you. It's also important to recognize the mistakes to avoid whilst the entire process.
Pune - The IT Parks
The City of Pune has a lot of buzz about its innovation-friendly policies & the high-quality software solutions that it can offer you. Apart from this, Pune is the most fast-growing destination for tech businesses in India. Besides, the city aims to uniquely take the high road to become The Next Silicon Valley Of India.
Household to 3200 startups
Home to giant tech companies
Cost-friendly software solutions
Top-notch education system
A pool of highly skilled tech professionals
Hyderabad - The Cyberabad
With the headquarters of Google, Facebook, & Microsoft, the next city in the race is Hyderabad. It is also known as the second-leading IT capital of India. With top-notch innovative startups clouding the city, the city is considered the dream job destination across the country. The city is a natural choice for IT exports.
Household to 3000 startups
Hub for IT & Pharmaceuticals
India’s biggest T-hub incubation center
The steady growth of IT companies
Sustainable IT Infrastructure
Chennai - The IT Infrastructures
With home to the second-largest development center of the top six software services exporters in the country, the third on the list is Chennai. In the race with Bangalore to become the next Silicon Valley of India, the city contributes 14% of India’s total software exports.
Household to 3500 startups
Robust education system
Growth Opportunities in the IT sector
The second-largest state economy in the country
Integrated infrastructure
The IT Industry Of India - Shaping The Future
The IT Industry of India contributes around 8% of India’s GDP in 2020. With such exponential growth, India is on its way to marking its territory in the global IT sector. Whether, it’s IT services, cloud computing, software & hardware products, or any other, India has successfully arisen as the world’s sourcing destination for IT-related services.
In the present times, India is accountable for exporting two-thirds of IT services to the United States. Moreover, still in the straggling period of COVID-19, the sector never seemed to go off-road and crash into losses. The skilled pool of talent aims to constantly upgrade their skills by making sure that they outperform in the tasks they are trusted with.
As per The National Association Of Software & Service Companies (NASSCOM), the top five Indian IT firms are planning to hire approximately 96,000 employees in 2021-22. With the evolution of technology & automation, these employees will surpass technological creativity.
Apart from this, what’s more fascinating is that Indian startups have raised $50 billion in the last six years. And this should remind you of the robust nature of these startups & the willingness of the Indian professionals to seek billion-dollar size investments for your firms.
Takeaway
In the race to be ‘The Next Silicon Valley of India’, we hope you understood the dynamics of capitalizing in India. With high-quality tech professionals & low-cost software solutions, India is surely an ideal destination for IT services. The country will never fail to captivate your business interests & shall make your business choices lucrative in the long run!