
Real estate prices in metros have skyrocketed and IT and BPO companies are scouting for tier II and tier III cities to expand their business hub. They feel that there is lot more that can be navigated beyond the Silicon Valley.
Aptara BPO has recently set up a facility in Dehradun. "The key reason to head towards tier II and tier three III from Metros is primarily related to high cost and people attrition. There are so many opportunities for people in the metros today that are contributing to increased costs and slowly diminishing the offshore advantage of India with the western countries. We have no other choice but to move to low cost alternatives," said Mr Devashish Ghosh, vice-president, Glo-bal Operations, Aptara.
He added that with the technology infrastructure spreading to tier II and tier III cities and availability of talent the two key ingredients for doing business exists, that is, talent and Internet bandwidth. The next key aspects being good infrastructure, easy logistics to reach the city from an international port of entry, power and local government support and importance given to this industry.
According to Mr R. Chandrasekaran, president and managing director, Cognizant, "A rich talent pool is the primary reason for Cognizant to enter tier II cities such as Coimbatore and Cochin."
"Spread of IT & ITES organisations to cities like Madurai, Coimbatore, Cochin etc will not only help the organisations by reducing operating costs, but will boost the local economies neglected for many years," says, Mr Hanuman Tripathi, managing director Infrasoft Technologies Limited.
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