There was a time when Bengaluru became the start-up city as well as the hub of several multinational companies, because of the suitable conditions that this coming-of-age city offered. However, worsening traffic conditions in the city and government’s lethargic attitude towards taking any steps to improve these conditions have forced Bengaluru’s outer ring road (ORR)-based MNCs to look outside the city for their next round of expansions.
Apparently, traffic has resulted in these companies facing productivity loss, estimated at hundreds of crores. Factors that are forcing companies to think of downsizing in Bengaluru also include road-safety issues, mental and physical stress and resulting health issues in their employees.
Three months ago, a group of heads of companies based along ORR met
If these companies shift base outside Bengaluru, the city stands at a risk of losing thousands of crores in investment, not to forget the dent to its reputation as a tech and startup hub.
Cities that emerge as an option for these companies include Pune, Hyderabad and Chennai, where traffic problem exists but much lesser as compared to Bengaluru.
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