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Mangaluru Emerges as Bengaluru's 'Plus One' in India's Decentralized Tech Story

Key Figures:

  • 15,000: Number of IT workforce in Mangaluru in 2023
  • 25,000-26,000: Current IT workforce in Mangaluru
  • 8,000: Jobs created by over 40 companies in the coastal belt
  • 20: Number of employees at EGDK India Private Limited in 2020
  • 850: Current number of employees at EGDK India Private Limited

Coastal City Scripts New Chapter in India's Decentralized Tech Story

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Mangaluru, a coastal city in India, is quietly emerging as a significant player in the country's decentralized tech story. Unlike Bengaluru, Mangaluru is building on its own strengths, offering cost efficiency, talent depth, and quality of life in a single equation. The city is being described as Bengaluru's 'plus one' - a complementary hub that can host core teams and long-term operations for companies.

Karnataka IT-BT Minister Priyank Kharge's Vision

Karnataka IT-BT Minister Priyank Kharge has outlined a vision to make Mangaluru an innovation hub. His plan includes skill development, digital and physical infrastructure, more Centres of Excellence, a new tech park, and support for private players, including subsidies for co-working spaces.

Employee Safety Concerns

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However, Kharge's recent statement that employee safety concerns amid recurring communal tensions are deterring some companies has sparked a row. Despite this, many entrepreneurs and companies are embracing the 'Back to Ooru' momentum, choosing to return to their roots and build sustainable businesses.

The 'Back to Ooru' Wave

The 'Back to Ooru' wave refers to professionals moving back to their hometowns, choosing familiarity over frenzy. During the pandemic, an estimated 1.2-1.5 lakh professionals returned to the coastal belt of Mangaluru, Udupi, and Manipal. Many continued to work remotely, indicating that productivity need not be tied to pin codes in Bengaluru or Mumbai.

Growing Ecosystem

The ambition in Mangaluru is quieter but not smaller. Industry leaders say that the city is quietly booming with opportunity. For millennials embracing a "back to ooru" life, the move is not just nostalgic, it is intentional. The city offers a calmer pace of life, a lower cost of living, and a growing ecosystem that allows founders to build meaningfully without the chaos of metro life.

Companies Grapple with Metro Challenges

For companies grappling with rising rentals, wage inflation, and attrition in Metro cities, Mangaluru presents a compelling alternative: high-quality talent, lower operating costs, and better retention. Vinayak Palankar, visiting professor at the National Institute of Technology Karnataka (NITK) and CMO of Monster.com, calls it a 'complementary extension' to Bengaluru.

Growing Numbers

The numbers are beginning to reflect that shift. Over the past two years, more than 40 companies have set up operations across the coastal belt, creating roughly 8,000 jobs. Several global capability centres (GCCs) have started small and scaled rapidly, with EGDK India Private Limited expanding from about 20 employees to over 850 within three years.

Investor Takeaway

Investors should consider Mangaluru as a potential complementary tech hub to Bengaluru, offering cost efficiency and quality of life.

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