Visiting execs to Bangalore rarely fail to come back home and blog about the cows on the streets, the harrowing traffic and the pitiful beggars. They insist it's charming. Not being able to find a hotel room in the city, they put down as a sign of booming business. Only a few admit to the loss of productivity that spending an hour and a half in the traffic can bring. Good or bad, companies continue to flock to Bangalore . For them it is the new Silicon Valley of the world.

Yet, for the service providers, both the multinationals and the Indian companies, in Bangalore to whom these companies have outsourced work to, the charm seems to be waning. Struck by the reality of poor infrastructure, people shortages and rising costs, they are busy setting up delivery centers in other cities of the country.

Outside of Bangalore , most large providers of IT and BPO services already have centers in Mumbai, Chennai and the National Capital Region of Delhi (this includes Delhi , Gurgaon and Noida). Many have also moved to the smaller, yet fast growing cities of Pune and Hyderabad . American corporates, too, are familiar with these cities, and don't hesitate to their work being done out of there.