Tech companies in Bangalore are being hit as waterlogging due to heavy rain has left employees stuck in traffic and campuses flooded. Various industry associations have called for the development of the city’s infrastructure.

The areas that house most of the tech companies – Outer Ring Road (ORR), Sarjapur Road, Bellandur and Whitefield – have been flooded due to torrential rains in the city, making it difficult for employees to get to work.

According to reports, various companies have allowed their employees to work from home. Business associations estimate that around 30% of the total workforce started returning to offices after the pandemic.

Losses mount

Businesses even incur losses as efficiency and productivity suffer. Outer Peripheral Business Association (ORRCA), in a letter to Karnataka Chief Minister Basavaraj Bommai, mentioned that IT companies suffered a loss of ₹225 crore on August 30 alone as their employees were stuck in traffic for about five hours.

ORR’s IT domain generates revenue of $22 billion a year (32% of Bengaluru’s revenue) and is the biggest tax contributor, the association said.

Krishna Kumar Gowda, Managing Director of ORRCA, said Activity area“Businesses are expected to suffer even more losses as the rains are expected to be heavy until September 9 e. They will also have to spend money to eliminate congestion on campuses. The association called on the government to address infrastructure issues and take steps to clean up storm sewers in the area, he added.

Will discuss compensation: CM

Chief Minister Bommai however assured the IT companies that a discussion will take place over the estimated loss of ₹225 crore per day. “We will call the IT companies and tell them about the issues they are facing due to the bottleneck. We will also discuss compensation and other related rain damage,” he said.

Industry associations say the infrastructure collapse has sparked global concern over Bengaluru’s ability to handle further growth.

Murali Govindarajulu, a member of Whitefield Rising – a civic initiative of concerned citizens – said Activity area“Businesses in the area whose workforce was returning to the office faced challenges due to the rains. Some campuses in the area are inundated.

Peenya Industrial Zone, which is also home to 8,500 MSMEs, was also affected. Shivakumar, secretary of the Peenya Industries Association, said: “Most of the area is flooded, businesses have stopped working. The estimated loss is ₹50 crore per day, and the ravages of the rain are expected to last for a week. It is a huge success for all businesses.

Karnataka contributes over $58 billion in IT exports – 38% of national exports – Bengaluru is the largest contributor to the state’s export value as it is home to over 5,500 IT/ITeS companies. Infrastructure failures caused by torrential rains could have a negative impact on the functioning and growth of the industry.

Published on

September 05, 2022