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The Top Ten Cities for Outsourcing in India

India has 35 major cities. Not all of them are good offshore outsourcing hubs.

In the recent past, several studies have been carried out to identify the best or most attractive cities in India. Gartner Inc, National Association of Software and Service Companies (NASSCOM) and KPMG, neoIT, Mercer, A T Kearney, Merrill Lynch and several others have carried out city studies for a wide range of objectives.

Important parameters that were considered when developing the rankings in these studies include:

  • Availability of Infrastructure (Power, Transport, Telecommunication, Housing)
  • Cost of Living
  • Real Estate Costs
  • Availability of Skilled Manpower
  • Attrition Rates
  • Quality of Living
  • Political Climate
  • Educational Institutions

Urban infrastructure in India is not the best in the world. Indian cities are facing overpopulation, indiscriminate growth and shortage of urban services like public transportation, water supply and sanitation. It is important to point out that the 2006 World-wide Quality of Living Survey by Mercer for 350 global cities has the top Indian cities Mumbai and Delhi ranked at 150th place. Not impressive at all. On the networking front, India ranks 40th out of 115 countries with the network readiness index of 0.23.

Despite the constrains imposed by the infrastructure or lack thereof, availability of skilled manpower and the low cost advantage continues to drive investment into urban India.

An analysis of city rankings by different surveys and study of recent outsourcing trends reveals that the top 10 outsourcing destinations in India are:

1. Chennai was the poor cousin of Bangalore and Hyderabad during the initial years of the IT boom in India. Today it is the lead outsourcing destination due to the low cost advantage, improving infrastructure, international connectivity, availability of land, skilled manpower and lower attrition rates compared to Bangalore and Hyderabad.

2. Hyderabad continues to woo investors by focusing on improving its urban infrastructure. The Governments, both past and present, have been very clear in their focus and support to the IT industry. The city has been among the most favored destinations due to the infrastructural improvements and the planned growth phased in by the governments in the twin cities.

3. Bangalore is the technology hub of India. It is increasingly becoming a global melting pot of cultures. The original garden and pub city of India has a comfortable climate compared to the other Indian cities that are happening in terms of outsourcing. However, the city’s infrastructure is inadequate to meet the demands of the exploding population. There is a growing feeling that other cities will overtake Bangalore if it continues to suffer due to political bickering, skyrocketing real estate prices and poor urban planning. According to a recent survey, it still ranks as the top city for living, earning and investing.

4. National Capital Region (NCR) includes Delhi and its surrounding suburbs. Delhi is expensive and not as popular for outsourcing. It is the suburbs, Gurgaon and Noida that have become important outsourcing destinations due to their proximity to the capital. They continue to be a major draw due to improving transport connectivity with Delhi, good international linkage and availability of skilled manpower.

5. Pune is Maharastra’s response to Bangalore. Its proximity to India’s financial capital, Mumbai and availability of trained manpower has led to the development of a thriving hi-tech outsourcing industry in this erstwhile retirement and education haven. Apart from other infrastructure components, the city is focusing on township projects to improve housing facilities.

6. Chandigarh and Mohali are twin cities. Chandigarh is one of the few planned and good cities of India. Mohali is its twin. Together, they have the space as well as the intellectual and financial capability to become India’s best outsourcing destinations. It does not yet have an international airport, but is well connected to New Delhi by road and rail.

7. Kolkata, the capital city of the state of West Bengal is high in intellect and has an advantage in terms of low costs. However, the city is famous for its traffic snarls and trade union shut downs. The current state government under chief minister Buddhadeb Bhattacharjee is making the right noises to encourage investors. Early indications are that it may actually emerge as a good outsourcing destination.

8. Mysore is one of India’s smaller cities, which have joined the outsourcing bandwagon. Its proximity to Bangalore and presence of companies like Infosys and Wipro has helped the cause. It is emerging as a preferred choice over Bangalore as India’s silicon city is now congested, expensive and has higher than average attrition rates.

9. Thiruvananthapuram in Kerala is well known for some of the leading science & technology research organizations in India. The city has the infrastructure and skilled workforce to attract IT investments. It is early days yet and remains to be seen whether Thiruvananthapuram can woo investors away from Bangalore, Hyderabad and Chennai.

10. Coimbatore is the emerging engineering outsourcing hub located in the state of Tamil Nadu. The government of Tamil Nadu is keen on developing Coimbatore as a major IT destination in the state. Coimbatore’s strength is its rich engineering tradition and young graduating engineers to meet the manpower demands of the growing industry.

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January 7, 2009 Posted by | Business, General, India Related, IT, World News | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Indian Airports on high alert after hijack warning

Airports in small cities like Jaipur, Chandigarh and Guwahati are at maximum risk.

TENSION IN THE AIR: Airports in small cities like Jaipur, Chandigarh and Guwahati are at maximum risk.

Security has been tightened at all airports following an intelligence warning.

According to intelligence agencies, there is a possibility of an Indian airplane being hijacked small airports where security checks are less stringent.

Airports in small cities like Jaipur, Chandigarh, Nashik and Guwahati are at maximum risk.

Intelligence agencies have alerted small airports and air marshals are being sent to sensitive sectors.

The Bureau of Civil Aviation Security is carrying out checks across the country. Earlier, there were rumours of a bag being found at Mumbai airport but those were found to be false.

According to some media reports, Deccan Mujahidden, a little-known organisation that claimed responsibility for Mumbai attacks, has sent an e-mail threatening to attack three Indian airports.

Intelligence agencies believe that the Deccan Mujahideen is a front created by LeT for it’s Mumbai strikes.

December 4, 2008 Posted by | Attacks, General, India Related | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

India’s 40 Richest Persons – 2008

Source: Forbes.com

Rank

Name

Net Worth ($mil)

Age

City

1

Mukesh Ambani (Reliance Industries Limited)

20,800

51

Mumbai

2

Lakshmi Mittal (Mittal Steel Company Ltd.)

20,500

58

London

3

Anil Ambani (Reliance Communications, Reliance Energy)

12,500

49

Mumbai

4

Sunil Mittal (Bharti Airtel Group)

7,900

51

Delhi

5

Kushal Pal Singh (DLF Limited)

7,800

77

Delhi

6

Shashi & Ravi Ruia (Essar Group)

7,600

64

Mumbai

7

Azim Premji (Wipro Technologies)

7,000

63

Bangalore

8

Kumar Birla (Aditya Birla Group)

5,000

41

Mumbai

9

Adi Godrej (Godrej Group)

4,000

66

Mumbai

10

Gautam Adani (Adani Enterprises Group)

3,900

46

Ahmedabad

11

Dilip Shanghvi (Sun Pharmaceutical Industries)

3,100

53

Mumbai

12

Savitri Jindal (O.P. Jindal Group)

2,900

59

Delhi & Hisar

13

Malvinder & Shivinder Singh (Ranbaxy Laboratories Limited)

2,800

36

Delhi

14

Anil Agarwal (Vedanta Resources Corporation)

2,400

55

London

15

Shiv Nadar (HCL Group)

2,200

63

Delhi

16

Micky Jagtiani (Landmark Group)

2,000

57

Dubai

17

Indu Jain (Bennett, Coleman & Co. Ltd.,)

1,800

72

Delhi

18

Cyrus Poonawalla (Poonawalla Group, Serum Institute of India)

1,600

67

Pune

19

Uday Kotak (Kotak Mahindra Bank)

1,550

49

Mumbai

20

Chandru Raheja (K. Raheja Corp.)

1,500

68

Mumbai

21

G.M. Rao (GMR Infrastructure Group)

1,470

58

Bangalore

22

Vivek Burman (Dabur India Limited)

1,300

71

Delhi

23

Anurag Dikshit (PartyGaming)

1,250

36

Gibraltar

24

Kalanithi Maran (Sun TV Network)

1,200

43

Chennai

25

Venugopal Dhoot (Videocon India)

1,100

57

Mumbai

26

Yusuf Hamied (Cipla Pharmaceutical Laboratories)

1,060

72

London & Mumbai

27

Ramesh Chandra (Unitech Group)

1,000

69

Delhi

28

Subhash Chandra (Zee TV Entertainment)

970

58

Mumbai

29

N.R. Narayana Murthy (Infosys Technologies Limited)

965

62

Bangalore

30

Rajan Raheja (Rajan Raheja Group)

950

54

Mumbai

31

Brijmohan Lall Munjal (Hero Honda Motors Limited)

940

85

Delhi

32

Baba Kalyani (Bharat Forge)

935

59

Pune

33

Tulsi Tanti (Suzlon Energy)

930

50

Pune

34

Jaiprakash Gaur (Jaypee Group)

890

77

Delhi

35

Niranjan Hiranandani (Niranjan Hiranandani Group)

885

58

Mumbai

36

Murali Divi (Divis Laboratories)

870

57

Hyderabad

37

Hemant Shah (Akruti City Limited)

830

55

Mumbai

38

Gracias Saldanha (Glenmark Pharmaceuticals Ltd.)

825

70

Mumbai

39

Anand Jain (Jai Corporation Ltd.)

810

51

Mumbai

40

Rahul Bajaj (Bajaj Auto Ltd.)

760

70

Pune

November 13, 2008 Posted by | Business, General, India Related, World News | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment