The tech industry is not only refusing to eat its own dog food, it's wilfully jacking up its costs and risk by insisting on stockpiling its live meat in one location.
I thought we were talking about San Francisco, not Mumbai. But on a different note, why do people live in New York when it costs so much to live there? Answer: Because that's where all the jobs are. And the infrastructure. It's a hundred square miles of urban superstructure built up over a hundred years. Duh. Why is it any kind of a surprise that tech businesses congregate together? Did we forget that human beings are social creatures? We are tribalistic. We naturally and instinctively seek out both social and physical environments most compatible with our disposition. And big surprise, we build our cities the same way -- there's the "young adult" sections, the "old people" sections, the jewish, chinese... drive around ANY city, anywhere, and you'll see clear signs of cultural delineation. Hell, the effect is so pronounced that researchers can calculate the socioeconomic prosperty of a given neighborhood down to the street level... by measuring the number of trees per square foot present. Yes: You can see culture from fucking space.
And yet, we're pissing and moaning about tech companies getting together? If you're in tech, you go where other techies are. Duh!