Multinational corporations have established research and development centres in India to take advantage of low‐cost labour and sophisticated science and technology facilities. India is becoming a global competitor in innovation, and its knowledge‐intensive firms increasingly need skilled workers. This article investigates talent acquisition in the information technology (IT) industry in Bangalore, also known as India's Silicon Valley. In particular, the paper studies the local supply and demand of human capital, which is critical for innovation and competition in the global knowledge economy. The author argues for a multi‐level study to better understand labour needs in emerging economies. In conclusion, the article addresses local and national institutional obstacles to talent acquisition and discusses future labour challenges in India's IT industry.