Everyone keeps saying Bengaluru is getting too crowded, too expensive, and too stressful for businesses. And honestly, they're not wrong. So the real question is — which city is next?

A major event held in Mangaluru on Saturday is trying to answer exactly that.

The Vertex CXO Conclave 2026, organised by Vertex Workspaces, brought together top-level business leaders, senior executives, and government officials at the Dr TMA Pai International Convention Centre in Mangaluru. The whole idea? To seriously put Mangaluru on the map as a business and investment destination — not just a "tier-2 city" that people pass through.

Government Is Paying Attention

This wasn't just corporate talk. Officials from two key Karnataka government bodies — the Karnataka Digital Economy Mission (KDEM) and the Karnataka Innovation and Technology Society (KITS) — were present and they came with actual substance.

Rahul Sharanappa Sankanur, Managing Director of KITS, along with Samir Venugopal, Bharath Chandra BK, and Vaishak Pai from KDEM, laid out what the government is offering to companies that set up outside Bengaluru — things like infrastructure support, help with hiring and talent development, and smoother regulatory processes.

In simple words: if a company wants to open an office in Mangaluru instead of Bengaluru, the government is ready to make that easier.

Vertex Wants to Do More Than Just Rent Out Desks

Vinayak Palanakar, CMO of Vertex Workspaces, made it clear that they're not just in the business of providing co-working spaces. The plan is to actively help companies figure out what government benefits they can get, and also help them solve one of the biggest headaches for any business expanding to a new city — finding the right people to hire.

The Real Challenge: Talent

Here's the honest part of the conversation. Everyone at the conclave agreed Mangaluru has genuine strengths — good educational institutions, improving roads and connectivity, and a growing IT and Global Capability Centre (GCC) presence.

But there's a problem that can't be ignored.

Kamal Karanth, co-founder of Xpheno (a well-known staffing and workforce company), pointed out something very real: the Mangaluru-Udupi region produces plenty of fresh graduates and mid-level professionals. But when it comes to senior-level talent — experienced managers, tech leads, senior strategists — the numbers are thin.

Why? Because most of them move to Bengaluru, Hyderabad, or Mumbai for better opportunities. Getting them back, or retaining them here in the first place, requires building a stronger local industry ecosystem — not just one or two big companies.

It's the classic problem — companies don't come because there's no senior talent, and senior talent doesn't stay because there aren't enough good companies. Breaking that cycle is the real challenge.

What Happens Next?

Gurudatta Shenoy, Managing Partner of Vertex Workspaces, said this conclave is just the beginning. The plan includes leadership forums, hiring platforms, and continued policy-level engagement to support businesses that are looking to grow in emerging markets like Mangaluru.

So this wasn't a one-day event with nice speeches and zero follow-up. At least that's the commitment.

Mangaluru has the colleges, the infrastructure is improving, the cost of living is far better than Bengaluru, and the government seems genuinely interested. The missing piece is still talent depth and a mature industry ecosystem — but events like this are at least moving the needle in the right direction.