Bengaluru, only Indian city to figure among top-10 global tech hubs

Though the pandemic has rapidly accelerated new ways of working, physical workplaces and innovation hubs remain key components of technology companies' strategy, as per KPMG research. Tech hubs have traditionally been incubators for new ideas, collaboration, and innovation. Despite advances in video and communications technologies, there is no substitute for in-person working. Next to US and China, India was ranked third in the list of countries that show the most promise for developing disruptive technologies. According to KPMG's annual report, 'technology innovation hubs' that provide insights on what executives and venture capitalists (VC) should consider when selecting and investing in technology centres.

Industry insiders were asked to rank cities around the world, outside of Silicon Valley, that they believe will flourish as technology innovation hubs in the next four years. The cities making the top-10 had strong ecosystems in place before the pandemic, enabling them to emerge stronger – and potentially provide a real challenge to Silicon Valley - as the world prepares for a post-Covid recovery. Singapore, New York and Tel Aviv stood as the leading technology innovation hubs (outside Silicon Valley/San Francisco). Bengaluru was the only Indian city ranked at eighth position among the top-10 global innovation hubs that had strong ecosystems in place before the pandemic. As the world recovers over the next four years, these cities will retain their status as tech hubs, the report said.

More than 800 industry leaders were surveyed for the latest report and 39 per cent believe these 'hub' cities including London, Singapore, and Tel Aviv will continue to play a vital role, enabling talent to coalesce and collaborate in communities with a solid digital infrastructure. Only 22 per cent believe hubs are no longer important. Almost twice as many global technology company leaders believe that hubs are still important in driving technology innovation as opposed to those who believe they are not. While 78 per cent say they will not be downsizing their physical footprint, only 26 per cent expect to hire predominantly remote talent. One third of the surveyed executives feel that Silicon Valley will maintain its innovation leadership.

Satya Easwaran, Partner and Head (Technology, Media and Telecom), KPMG in India, said: "India's presence among the top-three countries, for the second successive year, for promoting disruptive technologies proves the nation's tremendous emphasis on developing well-organised technology hubs for fostering all-round economic growth." He adds, "despite the pandemic, India's Silicon Valley - Bengaluru has been ranked eighth in the list of top ten world-class tech hubs. The well-structured infrastructure and resources machinery of the city has enabled many global tech corporations to operate smoothly from the city. Apart from talent and investment, Bengaluru is also known for accelerators and incubators to help tech companies."

Alex Holt, Global Head (Technology, Media and Telecommunications) at KPMG, said: "Employers are striving towards retaining engineering talent and intellectual property along with flexible work arrangements such as permanent hybrid workforce models. As the workforce disperses geographically, new hotbeds of technically skilled workers will emerge."