Assessing centers of IT-BPO growth
By CXOtoday Staff
Mumbai, May 7, 2008

NASSCOM along with management consulting firm, A.T Kearney, have carried out an on assessment of 50 locations in India suitable for the IT - BPO industry. The study provides a gap analysis along with advantages and shortcomings of the 50 locations.

NASSCOM along with management consulting firm, A.T Kearney, have carried out an on assessment of 50 locations in India suitable for the IT - BPO industry.The report is titled, 'Roadmap 'Location Roadmap for IT- BPO Growth: Assessment of 50 Leading Cities'.

The study provides a detailed gap analysis along with advantages and shortcomings of the 50 locations and the available opportunity for attracting investment from IT- BPO sector. The objective was to showcase a roadmap to achieve uniform economic development in India. The analysis indicates that based on their stage of development for IT-BPO, the locations can be categorized into 4 groups, viz. 'Leader', 'Challenger', 'Follower', and 'Aspirants'.

Cities like Bangalore, Chennai, Hyderabad, etc. have been classified as 'Leaders', whereas Indore, Kochi, Nagpur, etc. have been classified as 'Challengers' The study also sees a lot of potential in Tier 2 cities like Aurangabad, Bhopal, Goa, Dehradun, etc.

Ganesh Natarajan, Chairman, NASSCOM and Global CEO, Zensar Technologies said, "The Indian IT- BPO sector has been a frontrunner of economic development in select cities, providing employment to a large number of people and improving the overall quality of life and amenities like education and healthcare in these cities. We have broken down these 50 locations into different categories and for each of these locations, and even beyond them, there is significant potential to create a success story."

This report serves as a planning input for state governments, educational institutes, policy makers, and local industry bodies to attract investment into their regions.

Speaking about the rationale of the report, Som Mittal, president of NASSCOM said, "The development of only a few select set of cities has put severe pressure on the infrastructure, cost, and also increased migration of resources. The growth projections of the industry indicate that the existing 7 centers will see significant growth. However, it would need proactive planning and meticulous execution to support this growth.

The success of each of the centers would depend upon the speed and commitment with which the local city and state governments will work to fill up the gaps identified.

According to NASSCOM this report provides useful information on relative attractiveness to companies who are looking to enter or expand. The dispersion of IT centers will lead to balanced economic development and reduce economic disparity. Apart from partly balancing the pressure on the top tier locations, this would also add significantly to the stability of employees and reduce migration to large urban areas.

Methodology

The study was conducted by collecting and analyzing data from 50 locations on over 100 metrics broken down in to key parameters such as the following:

* Knowledge pool and skill-set availability
* Infrastructure
* Social and Living environment
* Enabling business environment
* Government support
* Operating cost

Apart from secondary research, a key aspect of the study was significant primary interactions with companies, educational institutions, government authorities, etc. in each of the 50 locations.


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