Does hybridization take place in other atoms apart from central atom in a molecule?
Yes, all atoms with p or d orbitals can hybridize in a molecule, not just the central atom.  Take acetone for example, the carbonyl carbon is $\ce{sp^2}$ hybridized and the carbonyl oxygen is also $\ce{sp^2}$ hybridized.  Another example is methyl chloride, the methyl carbon is $\ce{sp^3}$ hybridized and the chlorine is also $\ce{sp^3}$ hybridized.  As a final example consider dimethyl ether, each of the carbon atoms is $\ce{sp^3}$ hybridized and the central oxygen is also $\ce{sp^3}$ hybridized.