Bangalore, known as a magnet for India's technology jobs, is facing competition for investment from other cities, but business conditions are tough across India.
Long known as India’s software hub and a magnet for information technology (IT) jobs, Bangalore is facing challenges as other Indian cities compete for IT investment and the nation’s economy struggles with slowdown and graft.
Global consulting company Accenture recently announced a major expansion in India, with about 8,000 jobs going to Pune, a city with an emerging IT economy close to India’s financial hub Mumbai, according to the Economic Times.
It seems that Bangalore's branding as India's Silicon Valley – a misnomer given that the city sits on a plateau – could be threatened by other cities, such as Pune and Hyderabad, which has its own brand nickname: “Cyberabad.”
Assessing the challenge to Bangalore posed by Hyderabad, Rakesh Kumar Srivastava of New Delhi-based National Council of Applied Economic Research says that the regional government in Andhra Pradesh, of which Hyderabad is the regional capital, has worked to grow the city as an IT destination.
“Initiatives and strategies for infrastructural development, human resource development, and policy framework to support and attract investments have helped [Hyderabad] become an attractive investment destination for developers and occupiers as well,” he says.
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