India’s Karnataka opens bids for $16Mn Mangaluru IT park
BENGALURU, INDIA — The Karnataka government in India is set to open bids in the third week of December 2025 for the much-anticipated Mangaluru IT Park, marking a significant push to expand the state’s technology infrastructure beyond its capital city.
According to a report from Communications Today, with growing demand for quality tech spaces and increasing interest from startups in tier-2 locations, the project has already drawn attention from IT companies, investors, and industry stakeholders.
Karnataka’s ‘Beyond Bengaluru’ plan powers tier-2 tech growth
Karnataka, long known as India’s technology powerhouse thanks to Bengaluru, is emphasizing its ‘Beyond Bengaluru’ strategy to distribute IT growth across smaller cities.
“The demand for office space in Bengaluru, soaring operational costs, and heavy traffic congestion have pushed companies to explore new destinations,” the report notes.
Mangaluru, a coastal city with a skilled workforce and strong connectivity, has emerged as an ideal candidate.
The upcoming IT Park, a ₹135-crore (US$16.27 million) initiative, will cover 3.28 acres at Blueberry Hills Road in Derebail, near National Highway 66.
The project plans include a multi-storied building featuring Grade-A office infrastructure, coworking spaces, incubation centers, and fully serviced office floors.
Developed under a public-private partnership (PPP) model led by KEONICS, the park promises faster construction timelines, professional management, and transparency.
New Mangaluru IT park to create 11,000 jobs, boost startups
The Mangaluru IT Park is expected to generate more than 11,000 direct and indirect jobs across IT, digital services, networking, cybersecurity, and administrative functions.
“This growth will boost not only the tech sector but also local businesses such as transportation, retail, food services, and real estate,” the report states.
Beyond creating jobs, the IT Park is designed to support a burgeoning startup ecosystem, providing shared spaces and incubation hubs for fintech, AI, SaaS, and maritime-tech companies.
Its strategic location ensures easy access to the airport, railway station, and port, enabling efficient operations and cost-effective logistics.
For the outsourcing industry, this development signals a compelling shift. Companies seeking lower operational costs without compromising on infrastructure quality now have a viable alternative to Bengaluru.
Global capability centers (GCCs), business process outsourcing (BPO) firms, and cloud service providers stand to benefit from affordable office space and improved access to regional talent.
By fostering a tier-2 tech corridor along the coast, Karnataka is not only diversifying its IT landscape but also strengthening India’s position in global outsourcing markets.
