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Mumbai: As a growing number of outsourcing companies are looking at tier II and III
cities for expansion, Ahmedabad, Jaipur, Kochi and Kolkata figure among the most
favoured destinations by IT-BPM players.
According to a report on the emerging delivery locations in India by IT-ITeS industry
body Nasscom and global property consultant Cushman & Wakefield (C&W), these
cities are offering better opportunities in terms of business environment, talent,
infrastructure and cost differential.
"Ahmedabad, Jaipur, Kochi and Kolkata have significantly improved their value
proposition for IT-BPM services delivery over last five years and emerged as front
runners next only to Tier I cities or 'Leader' locations which continue to be the preferred
choices for IT-BPM industry," Nasscom said in a statement quoting the report.
The 'leader' locations however have also seen, a shift towards expansion into
peripheral locations as emerging alternate delivery locations, it added.
Front runner cities are followed by Bhubaneswar, Coimbatore, Trivandrum and
Visakhapatnam as the second choices while Chandigarh and Indore are promising
locations, the report said.
The report said Ahmedabad showcases strong infrastructure with good air connectivity,
significant growth in IT Grade A office stock, upcoming metro rail project and location
advantage of being on the Delhi-Mumbai corridor.
On the other hand, Jaipur offers a wide talent pool with headcount and number of ITBPM units doubling in last five years along with good air connectivity and underconstruction metro rail.
Kochi presents a distinct cost differential with operational cost savings up to 25 per cent
along with enabling IT infrastructure like presence of submarine communication cables
ensuring high speed internet connectivity with export revenues tripling in last five years.
Kolkata excels in business performance with employee headcount and number of