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Hyderabad attracts
ITES companies THE National Association of Software and Service Companies (Nasscom) revealed the findings of a study conducted in association with Netscribes to assess the competitiveness of nine Indian cities as destinations for IT Enabled Service (ITES) companies. The three-month long study evaluated the top nine cities including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Kochi, Mumbai (including Navi Mumbai), Pune and NCR (Delhi, Noida and Gurgaon). The cities were assessed on factors such as manpower availability, real estate, telecom infrastructure, policy initiatives, power infrastructure, city perception and entrepreneurial history. Speaking on the study, Kiran Karnik, president, Nasscom, said: "About 90 per cent of all ITES companies in India are concentrated in nine major cities while others have not been able to attract more than two companies each. Our study reveals that despite a large number of ITES companies being based in Mumbai, NCR and Bangalore, these cities are facing increasing competition from other cities. Cities such as Hyderabad, and Kochi are emerging as attractive ITES destinations primarily due to rapid improvements in infrastructure (power, international bandwidth and urban transportation) and lower manpower costs due to lower cost of living and lack of alternative employment opportunities in these cities." According to NASSCOM, the ITES industry in India is experiencing the third wave of growth; both in terms of geographical areas of operation and services offered. In the first phase, the industry was dominated by captive centers of large multinationals such as GE, American Express, and Swiss Air who set up operations in leading metros of the country such as Delhi and Mumbai In the second phase, the growth of the industry attracted numerous entrepreneurs (in many cases, employees of multinationals who quit their jobs to set up their own ITES ventures) again in and around Delhi (NCR) and Mumbai (including Navi Mumbai). The third phase of growth has been more geographically dispersed - with new locations emerging such as Hyderabad, Pune, Bangalore, Chennai, and more recently, Kochi The growth has been
driven by the desire by state governments to attract entrepreneurship,
which resulted in the former offering attractive policy environments and
incentives. According to the
report's findings, Hyderabad has emerged as the most competitive city
for ITES. Chennai, Kochi and Kolkata too rank highly in their
infrastructure offerings, policy incentives, and low cost manpower
availability though not at the same level as Hyderabad. On the other
hand, Ahmedabad, which ranks highly on availability of low cost
manpower, loses out on competitiveness as a result of weaker policy
incentives and infrastructure availability. Bangalore, Mumbai, NCR and
Pune ranked low in infrastructure availability, policy support and
availability of low-cost manpower. |
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