Developers in India hire Bangalore as IT hub

Bangalore is located in the heart of South India and is also known as the Silicon Valley of Asia. Home to more than 12 million people, the city is ranked 3rd among the cities with the fastest growing economy. With a projected growth rate of 8.5 percent, there is no doubt that Bangalore is developing at a tremendous pace. JLL even voted Bangalore the most dynamic city in the world based on the growth of the economy and the real estate market. More and more companies are drawn to the endless opportunities.

The rapid economic growth is due to the multitude of business models that have settled in the city, but one industry in particular has gained momentum like no other – the IT industry. In this post we will take a closer look at the development and whether hiring developers can be worthwhile for a company.

First things first: where is Bangalore located?

Bangalore is located in the state of Karnataka in southern India. The city was founded in the 16th century by KempeGowda, a feudal ruler in the Kingdom of Vijayanagara. Fun Fact: The name goes back to an incident in the 12th century when an old woman served boiled beans (Benda-Kal) to a king who got lost in the forest. He called the place Benda-Kal-Ooru, which means “the land of boiled beans”.

As well as being an IT hub, the city is known for its many parks, breweries, educational institutions, and aerospace centers. The climate is pleasant all year round. Due to its high location, it is not too hot during the day and pleasantly cool at night.

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How did Bangalore become an IT hub?

In the 1970s, some innovations were made to policies for trading in IT, which liberalized the import and export of hardware and software. This gave companies a quick and convenient way to outsource their software development to specialized software companies. This was more efficient and cheaper in India than on the domestic market.

In the early 1980s, more and more companies were investing in software for the masses. That promised higher profits than tailor-made, customer-specific solutions. At this point, Indian companies began to cooperate with American big players to help them set up development centers. American companies benefited tremendously from Bangalore’s huge talent pool and low local costs.

Texas Instruments was the first multinational company to set up in Bangalore in 1986. In a very short time, tech giants like Wipro and Infosys also decided to set up development centers in Bangalore. Since then, the city has been subject to a permanent suction effect.

Over time, more and more graduates began to dream of starting the next successful Indian company. New educational institutions and universities specializing in IT are springing up like never before. And the number of business start-ups is also increasing every year. In 2018 alone, 1,200 new startups were added.

India currently employs around 16 million people in the IT industry, around 75% of whom are employed in Bangalore.

The numbers are impressive, but only partially reflect why the city became an IT hub. The developers in Bangalore are among the best in the world. You have excellent technical know-how, extraordinary motivation and are willing to work very hard for your success. In order to get access to exactly this talent, companies like Amazon, Siemens, Microsoft and Google now have development centers in the city.

Why hire developers in Bangalore?

There is immense pressure in Europe and the US to find and hire talented developers with the skills they need. By moving part of the software development to Bangalore, one gains access to a larger talent pool. And those who pay fair salaries can also count on finding the right developers. A development center there can represent an enormous competitive advantage.

What about the costs?

Although Bangalore is relatively expensive for an Indian city, the cost of living is still significantly lower than in Western Europe. This is also reflected in salaries and other costs. Those who make enough effort in the recruiting process can expect the same quality for significantly less money.

So it is worthwhile even for smaller companies to look for developers in Bangalore. With the right processes and tools for documentation and task management, managing the distant remote team is almost identical to an internal team. Collaboration over several thousand kilometers has never been easier than it is today.

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