Bengaluru’s IT Slowdown: Challenges Faced by Telugu Tech Professionals

For years, Bengaluru has been synonymous with India’s IT boom, attracting professionals from across the country, especially from the Telugu-speaking states. However, the city is now facing multiple challenges that are forcing companies and employees to reconsider their options. Rising operational costs, worsening traffic congestion, and water scarcity have made Bengaluru less attractive for businesses. As a result, many IT firms and Global Capability Centers (GCCs) are relocating to other cities like Hyderabad and Chennai, where conditions are more favorable.

Highlights

Bengaluru, once India's tech capital, is now struggling with rising costs, water shortages, and severe congestion.

IT companies are shifting to other cities like Hyderabad and Chennai due to better infrastructure and lower operational expenses.

Job losses are increasing due to economic slowdown, AI-driven automation, and changing global hiring policies.

Rising vacancies in PG accommodations and rental properties signal a declining demand for housing in IT hubs.

Impact on Telugu Tech Professionals

Bengaluru has long been a preferred destination for IT professionals from Andhra Pradesh and Telangana. However, with the IT sector slowing down over the past few months, many of these professionals are finding themselves in uncertain situations. The job market has been hit hard by a combination of factors, including economic downturns and the global push for local hiring. In the US, policies aimed at reserving more job opportunities for American workers have reduced the demand for offshore IT services, impacting employment in Indian tech hubs.

The Role of AI in Job Reductions

Another major concern is the rapid adoption of AI-powered tools and automation technologies. Experts believe AI is significantly impacting coding and other IT-related jobs, leading to large-scale layoffs. While AI-driven automation has already disrupted job markets in the US, similar trends are emerging in India. Companies are increasingly cutting costs by replacing human employees with AI solutions, leaving many professionals unemployed and uncertain about their future.

Housing Market Crisis

Bengaluru’s IT slowdown is also affecting the real estate and rental markets. Many professionals who lost their jobs are returning to their hometowns, causing a decline in demand for PG (paying guest) accommodations and rental homes. Areas like Outer Ring Road, which were once buzzing with IT activity, are now experiencing rising vacancies.

PG owners report that hostels, once filled with young IT professionals, are now struggling to attract tenants. Similarly, landlords are hesitant to lower rents despite a lack of renters. Previously, a three-bedroom apartment in prime IT areas rented for approximately Rs. 25,000, but now, many remain unoccupied, leaving property owners with no rental income.

Layoffs and Future Uncertainty

The scale of job losses in Bengaluru is alarming. Reports indicate that in the past year, 87 IT companies laid off around 23,504 employees in the city. This downturn has created financial instability for many, particularly those from the Telugu-speaking states who moved to Bengaluru for better opportunities.

Conclusion

Bengaluru’s IT industry, once a beacon of growth and prosperity, is facing an uncertain future. The combined effects of economic slowdowns, AI-driven job cuts, and unfavorable business conditions are forcing many professionals to reconsider their stay in the city. If these trends continue, Bengaluru’s position as India’s leading tech hub may be at risk, paving the way for emerging cities like Hyderabad and Chennai to take the lead.