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IT in Bangalore
Monday, 19 November 2018 23:02

BANGALORE: Every now and then the question is asked whether Bangalore is losing its attractiveness for technology investments to other cities in India. This has been so for some years, and once again now the question has popped up, thanks to a poll conducted by Assocham (Associated Chambers of Commerce and Industry of India).



Assocham's: "Bangalore may lose its crown of India's Tech Eden to Gurgaon and Noida in the national capital region which are steadily becoming preferred destinations for companies offering IT, ITeS, BPO, BTO and KPO services.

The chamber's secretary general DS Rawat said, "Bangalore's roads are choked with vehicles, frequent power outages, erratic water supply and poor sanitation are tough problems on account of which Bangalore is losing its lustre to rapidly-developing Gurgaon and Noida." He added that Gurgaon's cosmopolitan culture, modern infrastructure, availability of skilled workforce, proximity to Delhi along with industry-friendly government policies gave it an edge over Bangalore.

Kris Gopalakrishnan, CEO of Infosys Technologies, said data did not prove that Bangalore was losing its sheen. "It's the single largest IT hub, and the city still houses 35% of the country's tech workforce. Ask MNCs, they would say they want to be in Bangalore." He said each city had its own challenges, including problems of infrastructure. He further pointed out that Bangalore, which has a high concentration of IT/ITeS companies, could not be compared with Gurgaon and Noida that have multiple industries.

Deepak Patel, CEO of Aditya Birla Minacs, said that in the last 12 years, Bangalore had become a mature IT market, and the rate of growth had reduced now because of its huge base. He says what has changed for Bangalore is the mix of work done here. "The city focuses mostly on high-end functions while low end work has been moving to tier 2/3 locations.''

However, Assocham's view found some support from Russel Smith, chairman of SDD Global Solutions, a legal process outsourcing firm. Bangalore, he said, attracted very few startup firms or new entrants from other parts of the world. "Bangalore's infrastructure is still a big issue and traffic snarls are terrible. Young professionals in Bangalore tell me their entire social life is in their car pool to and from work. There's no time left for much else."

Smith said the attractions of smaller cities such as Mysore were considerable and growing. "The lower cost of living and operating, plus lower levels of pollution and higher levels of beauty, are leading companies to tier-2 cities."