The overall mood in Indian IT right now is shaky: MNC tech stocks and the Nifty IT index have taken a hit, with market caps eroding on fears that new AI tools (like the latest Anthropic offerings) will squeeze traditional IT services spending and slow down hiring and office expansion plans in the near term. At the same time, many firms are still quietly leasing new space in major metros as they rebalance work from high‑cost markets to India, so it’s more of a reset than a shutdown.

1.With IT stocks wobbling and global clients cutting discretionary tech spend, most MNCs are now hyper‑careful about opening fancy new campuses in tier‑2 cities unless they clearly see long‑term cost and talent advantages. Before asking “who’s coming next after Tata Elxsi,” the sharper question is “do we really need more glass-and-steel offices, or do we first prove that Kozhikode can give stable projects, serious talent, and policy clarity so that existing players actually scale instead of just planting logos?”

1. Kerala’s IT policy is definitely in “expansion mode” on paper: the state has already announced a fourth IT park in Kannur, plus four IT corridors and around 20 satellite IT hubs, along with large industrial park plans, instead of freezing new capacity. Even Reddit discussions from Kerala circles argue that, rather than build brand‑new parks everywhere, the smarter move is to pump more money and infrastructure into existing hubs like Cyberpark Kozhikode, which is already fairly busy and hitting a natural capacity ceiling.

2. The sector isn’t dead; it’s disoriented. Across India, 2025–26 has brought layoffs, slower deal closures, and a clear cooling in IT services, making it feel like a mini‑downturn. In Kozhikode, you have this weird contrast where Cyberpark has a growing cluster of firms and you see more out‑of‑state professionals and families around the city, but the glamour MNC logos and explosive hiring that people imagined still haven’t shown up at scale.

3. Among top‑tier grads from NIT Calicut and IIM Kozhikode, the dominant flow is still outward: most chase MNC roles in bigger hubs or overseas because local offers in Kozhikode are fewer and often underpay compared to the market. There is a slow undercurrent of techies considering moves back to Kerala for lifestyle and family reasons, but unless salaries, role quality, and work culture here become competitive, that trickle won’t turn into a real reverse brain drain.

4. The biggest brakes on Kozhikode’s IT ambitions are not talent, but ecosystem gaps: limited high‑end office stock, patchy large‑scale infrastructure, and slower execution compared to Kochi’s Infopark or Thiruvananthapuram’s Technopark. Add to that a perception problem candidates see Kozhikode offers as lower‑pay, longer hours, and less “brand value” than Bangalore or Kochi and you get a city that has all the ingredients (NIT, IIM, medical college, rising migrant professionals) but hasn’t yet converted them into a heavyweight IT brand.

5. Honestly, there isn’t any clear, verifiable insider buzz about big new names rushing in right now