Synopsis: Cost and congestion is a growing concern in Bengaluru, Karnataka is creating its next generation IT hubs through Beyond Bengaluru initiative. Through the Beyond Bengaluru mission, Karnataka is building innovation clusters across Tier-2 cities, ensuring opportunities of the digital age reach every location.
The ‘Beyond Bengaluru’ initiative started in 2020 led by Karnataka Digital Economy Mission (KDEM) the distributed growth of digital economy beyond the state capital. As the cost of living and traffic increase in Bengaluru, Karnataka is moving forward with its “Beyond Bengaluru” initiative to create new IT hubs. The cities such as Mysuru, Mangaluru, Hubballi-Dharwad & Belagavi and Tumakuru are becoming the most preferred hubs for the technology firms, GCCs, start-ups and real estate investments.
Why Karnataka is expanding beyond Bengaluru
While skyrocketing land costs, office rentals, and traffic congestion have made it increasingly expensive to expand there. To solve this, Karnataka has launched its ₹967 crore IT-BT Policy 2025-30, which will promote investments in Tier-2 cities with special incentives, speeding up project clearances and providing infrastructure support.
‘Beyond Bengaluru‘ is an initiative by the government of Karnataka to develop cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Tumakuru as exporters of IT services with a target of US$10 billion by 2030. The programme had already onboarded 126 companies, secured 5,500+ direct jobs and enabled investments in sectors such as IT, emerging technologies, electronics and fintech and GCCs as of March 2025.
Mysuru: The second IT hub of the state
Among the major companies that have set up their base in Mysuru include Infosys, Wipro, LTIMindtree, ArisGlobal, Excelsoft Technologies and Triveni Engineering & Industries, and 11 more new companies launched making Mysuru the top IT hub in Karnataka. The government is also offering incentives for the electronics industry to set up their engineering R&D centres and Global Technology Centre (GTC) in Mysuru as part of its ‘Beyond Bengaluru’ policy. Till now, 440+ DPIIT registered startups.
The Bengaluru–Mysuru Expressway, Tech City (proposed) and the 150-acre PCB & Electronics Park at Nanjangud are helping the growth. The commercial demand also keeps growing with new townships, plotted developments and gated communities in addition to residential demand making Mysuru one of the most rapidly growing real estate markets in Karnataka (apart from Bengaluru).
Mangaluru: the Coastal Tech Hub of Karnataka
Due to the presence of the international airport, seaports and institutions like NITK and Manipal with high engineering talent, Mangaluru is emerging as one of the major coastal IT hubs and GCC hubs. It is already home to firms like Infosys, Cognizant, Novigo Solutions, Robosoft Technologies and CodeCraft Technologies, and 16 new companies launched.
250+ tech companies including 200 startups and 12 operational GCCs has increased demand for commercial offices and IT professionals in residential markets of Kadri, Bejai, Derebail and Kulshekar.
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Hubballi-Dharwad: North Karnataka’s Emerging Tech Belt
The strong engineering talent, industrial infrastructure and government support are driving Hubballi–Dharwad to become the technology corridor of North Karnataka. Some companies like Infosys, TCS, Sankalp Semiconductor, Aequs, Infinx, IBM (partner ecosystem) have set up and started operations, and the state is actively encouraging GCCs, engineering R&D centres and investments in semiconductor-related industries as part of its Beyond Bengaluru initiative.
The IT Park in Hubballi, Aequs SEZ in Belagavi, Dharwad’s start-up ecosystem, and better connectivity via highways and airports provide support for growth. Although commercial demand for offices is slowly picking up, residential development is also picking up with new townships being developed, gated communities and affordable housing projects for the growing work force.
Tumakuru: Next IT Extension to Bengaluru
Tumakuru, a mere 70 km from Bengaluru, is becoming a key satellite to the capital’s technological and industrial infrastructure. Though the city is still at an early stage of IT development, Karnataka is actively encouraging the development of IT, GCC, electronics, engineering and advanced manufacturing under the Beyond Bengaluru initiative. There are Japanese companies in the Vasanthanarasapura Industrial Area like Toshiba, Honda, Toyota Tsusho and Ace Micromatic and more companies from around the world are expected as the ecosystem grows.
The Chennai–Bengaluru Industrial Corridor (CBIC), 300 acre Japan Industrial Township and the 8,400-acre industrial township slated to create an estimated 83,000 employment opportunities are driving growth. As more and more industrial activity and its closeness to Bengaluru is driving the demand for residential townships, plotted developments and commercial spaces, Tumakuru is emerging as one of the fastest-growing investment destinations outside Bengaluru in Karnataka.
Conclusion
The IT growth is not just restricted to Bengaluru anymore. The cities of Mysuru, Mangaluru, Hubballi-Dharwad & Belagavi and Tumakuru are the next growth corridors in the state, with targeted government policies, better infrastructure and increased investments from IT companies, GCCs and industrial players.
